Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 1999, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 214-H.F.No. 2380
An act relating to education; appropriating money for
higher education and related purposes to the higher
education services office, board of trustees of the
Minnesota state colleges and universities, board of
regents of the University of Minnesota, and the Mayo
medical foundation, with certain conditions; requiring
post-secondary institutions to provide certain
information; modifying financial aid provisions;
making technical changes to membership and terms of
certain advisory councils, boards, and student
associations; modifying curriculum provisions for
Minnesota state colleges and universities; extending
and transferring the farmer-lender mediation program
to the Minnesota extension service; requiring certain
reports to the legislature; clarifying and changing
requirements of private career schools; amending
Minnesota Statutes 1998, sections 16B.465, subdivision
4; 135A.14, by adding a subdivision; 135A.155;
136A.031, subdivision 3; 136A.121, subdivision 5;
136A.125, subdivision 4; 136A.243, subdivision 7;
136A.244, subdivision 2; 136A.245, subdivision 6;
136F.02, subdivision 2; 136F.04, subdivision 1;
136F.22, subdivision 1; 136F.32, subdivision 2, and by
adding a subdivision; 141.21, subdivisions 3, 5, 6,
and by adding subdivisions; 141.25, subdivisions 1, 2,
3, 5, 6, 7, 8, 9, 10, and 12; 141.26, subdivision 2;
141.271, subdivisions 1, 2, 3, 4, 5, 6, and 12;
141.28, subdivisions 3 and 5; 141.29, subdivision 1;
141.31; 141.32; 141.35; 471.59, subdivision 1; and
583.22, subdivision 5; Laws 1986, chapter 398, article
1, section 18, as amended; proposing coding for new
law in Minnesota Statutes, chapters 136A; 137; and
141; repealing Minnesota Statutes 1998, sections
136A.1359; 136A.136; 141.22; 141.25, subdivisions 9a,
9b, and 11; and 141.36.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
APPROPRIATIONS
Section 1. [HIGHER EDUCATION APPROPRIATIONS.]
The sums in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or other named fund, to the
agencies and for the purposes specified in this article. The
listing of an amount under the figure "2000" or "2001" in this
article indicates that the amount is appropriated to be
available for the fiscal year ending June 30, 2000, or June 30,
2001, respectively. "The first year" is fiscal year 2000. "The
second year" is fiscal year 2001. "The biennium" is fiscal
years 2000 and 2001.
SUMMARY BY FUND
2000 2001 TOTAL
General $1,277,440,000 $1,338,000,000 $2,615,440,000
Health Care
Access 2,937,000 2,937,000 5,874,000
Lottery Prize Fund 250,000 -0- 250,000
SUMMARY BY AGENCY - ALL FUNDS
2000 2001 TOTAL
Higher Education Services Office
149,926,000 160,527,000 310,453,000
Board of Trustees of the Minnesota
State Colleges and Universities
543,597,000 572,394,000 1,115,991,000
Board of Regents of the University
of Minnesota
585,558,000 606,379,000 1,191,937,000
Mayo Medical Foundation
1,546,000 1,637,000 3,183,000
APPROPRIATIONS
Available for the Year
Ending June 30
2000 2001
Sec. 2. HIGHER EDUCATION
SERVICES OFFICE
Subdivision 1. Total
Appropriation 149,926,000 160,527,000
The amounts that may be spent from this
appropriation for each purpose are
specified in the following subdivisions.
Subd. 2. State Grants
117,907,000 128,367,000
If the appropriation in this
subdivision for either year is
insufficient, the appropriation for the
other year is available for it.
The legislature intends that the higher
education services office make full
grant awards in each year of the
biennium.
For the biennium, the private
institution tuition maximum shall be
$8,300 in the first year and $8,550 in
the second year for four-year
institutions and $6,390 in the first
year and $6,580 in the second year for
two-year institutions.
This appropriation contains money to
set the living and miscellaneous
expense allowance at $5,075 in the
first year and $5,185 in the second
year.
This appropriation contains money to
match scholarship grants made under the
National Service Scholars program of
the Corporation for National Service to
students attending Minnesota high
schools and who will attend a Minnesota
post-secondary institution. Not more
than one matching grant of $500 may be
made for each high school per year.
Subd. 3. Interstate Tuition
Reciprocity
4,500,000 4,500,000
If the appropriation in this
subdivision for either year is
insufficient, the appropriation for the
other year is available to meet
reciprocity contract obligations.
Subd. 4. State Work Study
12,444,000 12,444,000
To assist the legislature in future
policy and appropriation decisions, the
office shall collect information from
all participating institutions on the
use of child care and work study
allocations. For each program, the
data shall include at least the number
of recipients, the hours for which they
receive state money, payment per hour,
location of service, unmet demand,
returned and additional allocations,
and any institutional/system policies
that affect recipients. The office
shall provide this information to the
higher education finance committees by
January 15, 2000.
Subd. 5. Minitex Library Program
4,948,000 4,968,000
This appropriation is for Minitex and
MnLINK operations, the Minnesota
Library Access Center, licensing for
online table of contents, and licensing
for online journals including online
databases for MnLINK.
Subd. 6. Learning Network of Minnesota
5,178,000 5,179,000
Subd. 7. Income Contingent Loans
The higher education services office
shall administer an income contingent
loan repayment program to assist
graduates of Minnesota schools in
medicine, dentistry, pharmacy,
chiropractic medicine, public health,
and veterinary medicine, and Minnesota
residents graduating from optometry and
osteopathy programs. Applicant data
collected by the office for this
program may be disclosed to a consumer
credit reporting agency under the same
conditions as apply to the supplemental
loan program under Minnesota Statutes,
section 136A.162. No new applicants
may be accepted after June 30, 1995.
The higher education services office
shall work with the office of the
senior vice-president for health
sciences at the University of Minnesota
to determine the borrowing and
repayment problems of students in the
academic health center. The higher
education services office shall report
any findings and recommendations to the
higher education finance committees by
February 1, 2000.
Subd. 8. Edvest
1,520,000 1,520,000
Notwithstanding Minnesota Statutes,
section 16C.05, subdivision 2, the
higher education services office may,
on a one-time basis, enter into a
contract up to eight years with a third
party vendor for purposes of starting
the Edvest program authorized in
Minnesota Statutes, section 136A.241.
Subd. 9. Agency Administration
3,429,000 3,549,000
This appropriation includes money for
the Minnesota Minority Education
Partnership. This appropriation
includes funding to foster
post-secondary attendance by providing
outreach services to historically
underserved groups of Minnesota
elementary and secondary students. The
office may retain the entire
appropriation or contract with other
agencies or nonprofit organizations for
specific services in this effort.
Notwithstanding Laws 1994, chapter 643,
section 69, subdivision 2, the library
planning task force shall expire on
June 30, 2001.
Subd. 10. Balances Forward
An unencumbered balance in the first
year under a subdivision in this
section does not cancel but is
available for the second year.
Subd. 11. Transfers
The higher education services office
may transfer unencumbered balances from
the appropriations in this section to
the state grant appropriation, the
interstate tuition reciprocity
appropriation, the child care
appropriation, and the state work study
appropriation.
Sec. 3. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND UNIVERSITIES
Subdivision 1. Total
Appropriation 543,597,000 572,394,000
The amounts that may be spent from this
appropriation for each purpose are
specified in the following subdivisions.
Subd. 2. Estimated Expenditures and Appropriations
The legislature estimates that
instructional expenditures will be
$678,729,000 in the first year and
$713,533,000 in the second year.
The legislature estimates that
noninstructional expenditures will be
$65,093,000 in the first year and
$66,723,000 in the second year.
The legislature intends that state
appropriations be used to strengthen
and support education of students. To
this end, all money appropriated in
this section, except that in direct
support of system office activities,
shall be allocated by the board
directly to the colleges and
universities.
During the biennium, neither the board
nor campuses shall plan or develop
doctoral level programs or degrees
until after they have received the
recommendation of the house and senate
committees on education, finance, and
ways and means.
This appropriation includes an increase
of $5,000,000 in each year for
customized training and leveraged
equipment purchases.
This appropriation includes money for
repair and replacement of
state-financed facilities, a degree
audit reporting system, technology
infrastructure, Y2K, virtual
university, and ISEEK.
This appropriation includes $5,000,000
per year for grants to historically
underfunded institutions demonstrating
financial distress. Grants must not
exceed $500,000. The money must be
spent in support of instructional
programs or student services. By
December 31 of each year, the system
shall report to the chairs of the
higher education finance committees on
the distribution of the grants.
This appropriation includes money to
increase access to the farm and small
business management programs by
expanding the capacity of the programs
and providing additional tuition
subsidies.
This appropriation includes money for
the Center for Research and Innovation
at Bemidji State University.
This appropriation includes money for
start-up funding for a rural research
center at Southwest State University.
This appropriation includes money for
the agriculture program at the Staples
campus of the Central Lakes college.
Metropolitan State University may
retain any money saved from a reduction
in lease costs at the 730 Hennepin
Avenue South site.
During the biennium, technical and
consolidated colleges shall make use of
instructional advisory committees
consisting of employers, students, and
instructors. The instructional
advisory committee shall be consulted
when a technical program is proposed to
be created, modified, or eliminated.
If a decision is made to eliminate a
program, a college shall adequately
notify students and make plans to
assist students affected by the closure.
The system shall prepare a budget plan
for the system office. The plan shall
include budgeted expenditures for each
major division or program of the system
office. The plan also shall include a
review of the current functions,
services, and programs managed or
provided by the system office. The
review shall describe the purpose of
these activities and their cost;
analyze whether they are necessary and
how they benefit the colleges and
universities; and identify unnecessary
duplication of programs and services
provided at the system and
institutional levels. The board shall
report to the higher education finance
committees by February 15, 2000, on its
findings and articulate an
organizational plan for the system
office.
In each year, the board of trustees
shall increase the percentage of the
total general fund expenditures for
direct instruction and academic
support, as reported in the federal
Integrated Postsecondary Education Data
System (IPEDS). By February 15 of 2000
and 2001, the board of trustees shall
report to the higher education finance
committees the percentage of total
general fund expenditures spent on
direct instruction and on academic
support during the previous fiscal year
by institution and for the system as a
whole.
Before commencing any new program not
specifically authorized by law for
teachers of color and urban teachers,
the board shall evaluate existing
programs and determine whether to
expand or modify an existing program or
create a new program.
The board may waive tuition for
eligible Southwest Asia veterans, as
provided in Minnesota Statutes, section
136F.28.
Notwithstanding Minnesota Statutes,
section 136F.71, subdivision 1, a state
college shall retain revenues in excess
of costs for delivering customized
training programs. The excess revenues
shall be used for expanding and
developing customized training programs.
Subd. 3. Health Care and Human
Services Tuition Waiver
100,000 100,000
This appropriation is from the health
care access fund for the board of
trustees to provide tuition waivers to
employees of health care or human
services providers located in this
state that are members of qualifying
consortia operating under sections to
be codified as Minnesota Statutes,
sections 116L.10 to 116L.15, as
provided in article 11, sections 3 to 8
of S.F. No. 2225, the second
engrossment, if enacted. The
legislature intends that future funding
for this program not come from higher
education appropriations.* (The
preceding subdivision was vetoed by the
governor.)
Subd. 4. Itasca Community College
The board of trustees of the Minnesota
state colleges and universities is
authorized to construct the following
facilities at Itasca community college:
(1) a two-classroom addition to be
located between the college center
building and Davies Hall. The project
shall be paid for from lease revenue
supplied from nonstate sources; and (2)
an addition to the existing child care
center. The project shall be paid for
from the appropriation in Laws 1997,
chapter 183, article 1, section 3,
subdivision 3, for pilot infant child
care programs and from matching money
from nonstate sources.
Subd. 5. Winona State University Land
Notwithstanding Minnesota Statutes,
sections 94.09 to 94.16, the board of
trustees may sell a parcel of Winona
State University land for no less than
its appraised value in a private sale
to resolve conflicting property
boundaries. Money from the sale is
appropriated to the board to be
allocated to Winona State University.
Subd. 6. Pine Technical College
The board may accept federal money for
and is authorized to construct an
advanced technology center building at
Pine technical college. The
construction of the technology center
is contingent upon the receipt of the
federal money.
Sec. 4. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
Subdivision 1. Total
Appropriation 585,558,000 606,379,000
The amounts that may be spent from this
appropriation for each purpose are
specified in the following subdivisions.
Subd. 2. Operations and
Maintenance 513,279,000 533,870,000
Estimated Expenditures
and Appropriations
The legislature estimates that
instructional expenditures will be
$461,521,000 in the first year and
$484,679,000 in the second year.
The legislature estimates that
noninstructional expenditures will be
$202,367,000 in the first year and
$201,717,000 in the second year.
By January 30, 2000, the University
shall submit to the governor and the
legislature a master academic plan for
the Rochester region that clearly
defines the academic needs of the
region, short and long-term plans to
address those needs including the
designation of responsibility among the
partner institutions, short and
long-term demographic and enrollment
projections, physical plant capacity
and needs, and a delineation of
missions among the partner institutions
to avoid competition and duplication.
Notwithstanding Minnesota Statutes
1998, section 137.022, subdivision 4,
in fiscal year 2001 the first $200,000
of permanent university fund income
from royalties for mining under state
mineral leases designated for the
natural resources research institute
shall be allocated by the board of
regents to the department of landscape
architecture to develop a long-range
plan for the reclamation of taconite
mining lands. The board shall allocate
the money only if an equal or greater
amount of matching money from nonstate
sources has been pledged to support the
project by June 30, 2000.
The University of Minnesota academic
health center, after consultation with
the health care community and medical
education and research costs advisory
committee, shall report by January 15,
2000, to the higher education finance
committees on the strategic direction
of its health professional programs.
The plans shall include a programmatic
and financial model for health
professional education that will meet
the state's future workforce needs,
maintain the integrity of the education
process, provide an appropriate level
of ongoing financial support, and
provide a framework for the health
community and academic health center to
work together in meeting the health
needs of the state. The academic
health center is requested to provide
the report also to the commissioner of
health and the legislative commission
on health care access.
Subd. 3. Health Care Access Fund
$2,837,000 each year is appropriated
from the health care access fund for
primary care education initiatives,
which is a one-time increase of
$300,000 each year over the base
funding.
Subd. 4. Compulsive Gambling Research Funding
$250,000 from the lottery prize fund
shall be appropriated on a one-time
basis to the board of regents of the
University of Minnesota for the
academic health center to conduct
research, clinical work, treatment, or
teaching related to compulsive gambling
addiction.* (The preceding subdivision
was vetoed by the governor.)
Subd. 5. Special
Appropriation 72,279,000 72,509,000
The amounts expended for each program
in the four categories of special
appropriations shall be separately
identified in the 2001 biennial budget
document.
(a) Agriculture and Extension Service
57,588,000 57,588,000
This appropriation is for the
Agricultural Experiment Station,
Minnesota Extension Service, regional
sustainable agriculture partnerships,
initiatives designed to sustain
Minnesota's renewable natural
resource-based industries, and for a
rapid agricultural response fund to
conduct research to solve problems
affecting agricultural products
including, but not limited to spring
wheat, barley, potatoes, grapes and
wine, canola, and turkeys.
Any salary increases granted by the
University to personnel paid from the
Minnesota Extension appropriation must
not result in a reduction of the county
responsibility for the salary payments.
During the biennium, the University
shall maintain an advisory council
system for each experiment station.
The advisory councils must be broadly
representative of range of size and
income distribution of farms and
agribusinesses and must not
disproportionately represent those from
the upper half of the size and income
distributions.
(b) Health Sciences
5,789,000 5,846,000
This appropriation is for rural
physicians associates program, the
Veterinary Diagnostic Laboratory,
health sciences research, dental care,
and the Biomedical Engineering Center.
(c) Institute of Technology
1,600,000 1,645,000
This appropriation is for the
Geological Survey and the Talented
Youth Mathematics Program.
(d) System Specials
7,302,000 7,430,000
This appropriation is for general
research, student loans matching money,
industrial relations education, Natural
Resources Research Institute, Center
for Urban and Regional Affairs, Bell
Museum of Natural History, and the
Humphrey exhibit.
Sec. 5. MAYO MEDICAL FOUNDATION
Subdivision 1. Total
Appropriation 1,546,000 1,637,000
The amounts that may be spent from this
appropriation for each purpose are
specified in the following subdivisions.
Subd. 2. Medical School
554,000 605,000
The state of Minnesota shall pay a
capitation of $13,200 in the first year
and $14,405 in the second year for each
student who is a resident of
Minnesota. The appropriation may be
transferred between years of the
biennium to accommodate enrollment
fluctuations.
The legislature intends that during the
biennium the Mayo foundation use the
capitation money to increase the number
of doctors practicing in rural areas in
need of doctors.
Subd. 3. Family Practice and
Graduate Residency Program
601,000 625,000
The state of Minnesota provides a
capitation of $21,455 in the first year
and $22,315 in the second year for each
student. The rural training program
capitation is $42,910 the first year
and $44,630 the second year for one
resident.
Subd. 4. St. Cloud Hospital-Mayo
Family Practice Residency Program
391,000 407,000
This appropriation is to the Mayo
foundation to support 12 resident
physicians each year in the St. Cloud
Hospital-Mayo Family Practice Residency
program. The program shall prepare
doctors to practice primary care
medicine in the rural areas of the
state. It is intended that this
program will improve health care in
rural communities, provide affordable
access to appropriate medical care, and
manage the treatment of patients in a
more cost-effective manner.
ARTICLE 2
RELATED PROVISIONS
Section 1. Minnesota Statutes 1998, section 16B.465,
subdivision 4, is amended to read:
Subd. 4. [PROGRAM PARTICIPATION.] (a) The commissioner may
require the participation of state agencies, and the state board
of education, and the board of trustees of the Minnesota state
colleges and universities and may request the participation of
the board of regents of the University of Minnesota and the
board of trustees of the Minnesota state colleges and
universities, in the planning and implementation of the network
to provide interconnective technologies. The commissioner shall
establish reimbursement rates in cooperation with the
commissioner of finance to be billed to participating agencies
and educational institutions sufficient to cover the operating,
maintenance, and administrative costs of the system.
(b) A direct appropriation made to an educational
institution for usage costs associated with the state
information infrastructure must only be used by the educational
institution for payment of usage costs of the network as billed
by the commissioner of administration.
Sec. 2. Minnesota Statutes 1998, section 135A.14, is
amended by adding a subdivision to read:
Subd. 6. [HEPATITIS INFORMATION.] All public and private
post-secondary education institutions shall provide information
regarding the transmission, treatment, and prevention of
hepatitis A, B, and C, to all persons who are first-time
enrollees. The department of health shall be consulted
regarding the preparation of these materials.
Sec. 3. Minnesota Statutes 1998, section 135A.155, is
amended to read:
135A.155 [HAZING POLICY.]
The board of trustees of the Minnesota state colleges and
universities shall, and the University of Minnesota is requested
to, adopt a clear, understandable written policy on student
conduct, including hazing. The policy must include procedures
for reporting incidents of inappropriate hazing and for
disciplinary actions against individual violators and
organizations. The policy must be provided to students when
they register and must be shall be made available to students by
appropriate means as determined by each institution, which may
include publication in a student handbook or other institutional
publication, or posting by electronic display on the Internet,
and shall be posted at appropriate locations on campus. A
private post-secondary institution that is an eligible
institution as defined in section 136A.101, subdivision 4, must
adopt a policy that meets the requirements of this section.
Sec. 4. Minnesota Statutes 1998, section 136A.031,
subdivision 3, is amended to read:
Subd. 3. [STUDENT ADVISORY COUNCIL.] A student advisory
council (SAC) to the higher education services council is
established. The members of SAC shall include: the chair of
the University of Minnesota student senate,; the state chair of
the Minnesota state university student association, the
president of the Minnesota community college student
association, the president of the Minnesota technical college
student association,; the president of the Minnesota state
college student association and an officer of the Minnesota
state college student association, one in a community college
course of study and one in a technical college course of study;
the president of the Minnesota association of private college
students,; and a student who is enrolled in a private vocational
school, to be appointed by the Minnesota association of private
post-secondary schools. A member may be represented by a
student designee who attends an institution from the same system
that the absent member represents. The SAC shall select one of
its members to serve as chair.
The higher education services council shall inform the SAC
of all matters related to student issues under consideration and
shall refer all proposals to the SAC before taking action or
sending the proposals to the governor or legislature. The SAC
shall report to the higher education services council quarterly
and at other times that the SAC considers desirable. The SAC
shall determine its meeting times, but it shall also meet with
the council within 30 days after the director's request for a
meeting.
The SAC shall:
(1) bring to the attention of the higher education services
council any matter that the SAC believes needs the attention of
the council;
(2) make recommendations to the higher education services
council as it finds appropriate;
(3) appoint student members to the higher education
services council advisory groups as provided in subdivision 4;
and
(4) provide any reasonable assistance to the council.
Sec. 5. Minnesota Statutes 1998, section 136A.121,
subdivision 5, is amended to read:
Subd. 5. [GRANT STIPENDS.] The grant stipend shall be
based on a sharing of responsibility for covering the recognized
cost of attendance by the applicant, the applicant's family, and
the government. The amount of a financial stipend must not
exceed a grant applicant's recognized cost of attendance, as
defined in subdivision 6, after deducting the following:
(1) the assigned student responsibility of at least 47 46
percent of the cost of attending the institution of the
applicant's choosing;
(2) the assigned family responsibility as defined in
section 136A.101; and
(3) the amount of a federal Pell grant award for which the
grant applicant is eligible.
The minimum financial stipend is $300 $100 per academic
year.
Sec. 6. [136A.1211] [USE OF STATE GRANT SAVINGS.]
Savings in the state grant program resulting from an
increase in the maximum federal Pell grant from the anticipated
level of $3,125 shall be used by the office to increase the
living and miscellaneous expense allowance.
Sec. 7. Minnesota Statutes 1998, section 136A.125,
subdivision 4, is amended to read:
Subd. 4. [AMOUNT AND LENGTH OF GRANTS.] The amount of a
child care grant must be based on:
(1) the income of the applicant and the applicant's spouse,
if any;
(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.
The maximum award to the applicant shall be $2,000 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.
Sec. 8. Minnesota Statutes 1998, section 136A.243,
subdivision 7, is amended to read:
Subd. 7. [MARKETING.] The director 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. The cost of these promotional efforts must be paid
entirely from state general fund appropriations and may not be
funded with fees imposed on participants.
Sec. 9. Minnesota Statutes 1998, section 136A.244,
subdivision 2, is amended to read:
Subd. 2. [PERMITTED INVESTMENTS.] The board may invest the
accounts in any permitted investment under section 11A.24,
except that the accounts may be invested without limit in
investment options from open-ended investment companies
registered under the federal Investment Company Act of 1940,
United States Code, title 15, sections 80a-1 to 80a-64.
Sec. 10. Minnesota Statutes 1998, section 136A.245,
subdivision 6, is amended to read:
Subd. 6. [PRIVATE CONTRIBUTIONS.] (a) The office may
solicit and accept contributions from private corporations,
other businesses, foundations, employers, or individuals to
provide:
(1) matching grants under this section in addition to those
funded with direct appropriations; or
(2) grants to students who withdraw money from accounts
established under the program; or
(3) contributions to an account on behalf of a beneficiary.
(b) Amounts contributed may only be used for those
purposes. Amounts contributed are appropriated to the director
to make grants for the purposes of this subdivision.
(c) Contributors may designate a specific field of study,
geographic area, or other criteria that govern use of the grants
funded with their contributions, but may not discriminate on the
basis of race, ethnicity, or gender. The office may refuse
contributions that are subject, in the judgment of the director,
to unacceptable conditions on their use.
Sec. 11. Minnesota Statutes 1998, section 136F.02,
subdivision 2, is amended to read:
Subd. 2. [TERM; COMPENSATION; REMOVAL; VACANCIES.] The
compensation, removal of members, and filling of vacancies on
the board are as provided in section 15.0575. Members are
appointed for a term of six years, except that the term of each
of the student members is two years. Terms end on June 30,
except that members may serve until their successors are
appointed.
Sec. 12. Minnesota Statutes 1998, section 136F.04,
subdivision 1, is amended to read:
Subdivision 1. [RESPONSIBILITY.] Notwithstanding section
136F.03, the statewide community college student association,
state university student association, and technical the state
college student association shall each have the responsibility
for recruiting, screening, and recommending qualified candidates
for its their student member members of the board.
Sec. 13. Minnesota Statutes 1998, section 136F.22,
subdivision 1, is amended to read:
Subdivision 1. [STATEWIDE.] The board shall recognize one
statewide student association for the community colleges, one
for the state universities, and one for the community and
technical colleges. Each campus student association shall be
affiliated with its statewide student association and all
students enrolled on those campuses shall be members of their
respective statewide association.
Sec. 14. Minnesota Statutes 1998, section 136F.32,
subdivision 2, is amended to read:
Subd. 2. [TECHNICAL AND CONSOLIDATED TECHNICAL COLLEGES.]
(a) A technical college or consolidated technical community
college shall offer students the option of pursuing diplomas and
certificates in each technical education program, unless the
board determines that this is not practicable for certain
programs a degree is the only acceptable credential for career
entry in a specific field. All vocational and technical credits
earned for a diploma or certificate shall be applicable toward
any available degree in the same program.
(b) Certificates and diplomas are credentials that
demonstrate competence in a vocational or technical area and,
therefore, may include a general education component only as
part of an articulation agreement or to meet occupational
requirements as established by the trade or profession, or by
the program advisory committee. Students shall be provided with
applied training in general studies as necessary for competence
in the program area. Students who have earned a certificate or
diploma may earn a degree in the same field if they complete the
general education and other degree requirements.
Sec. 15. Minnesota Statutes 1998, section 136F.32, is
amended by adding a subdivision to read:
Subd. 3. [ASSESSMENT.] To reduce barriers to enrollment
and to train a skilled workforce, students may be assessed for
skills necessary for competency in a technical or vocational
field as part of their program. The results of standardized
assessment tests shall not prohibit enrollment in a student's
certificate or diploma program.
Sec. 16. [137.17] [ROCHESTER BRANCH.]
Subdivision 1. [ESTABLISH.] The board of regents may
establish a school of professional and graduate studies as a
nonresidential branch campus of the University of Minnesota,
Rochester, to serve the needs of working adults and other
nontraditional students in southeastern Minnesota. The campus
shall be a joint partnership of the University of Minnesota with
Rochester community and technical college, and Winona state
university.
The board of trustees of the Minnesota state colleges and
universities shall cooperate to achieve the foregoing.
Subd. 2. [LEADERSHIP.] The legislature intends that the
Rochester branch strengthen the existing partnership of
institutions in Rochester by providing better coordination and
leadership in serving the needs of the region, while maintaining
a cooperative basis among the institutions. The University of
Minnesota is expected to take the leadership role in assessing
community needs and facilitating the delivery of upper division
and graduate academic programming and student services by
existing higher education providers. It is the intent of the
legislature that this branch not diminish the role or function
of existing higher education institutions in Rochester or
elsewhere in the region in which the state already has a
significant investment.
Subd. 3. [MISSIONS.] The legislature recognizes that the
distinctiveness of each of the partner institutions in Rochester
must be maintained to achieve success in serving the higher
education needs of the community and the economic goals of the
state. Further, the legislature intends that the University of
Minnesota and the other partner institutions avoid duplicative
offerings of courses and programs. Therefore, the University of
Minnesota, Winona state university, and Rochester community and
technical college shall develop jointly a statement of missions,
roles, and responsibilities for the programs and services at
Rochester which shall be submitted to the legislature by January
30, 2000, and any time thereafter that the missions, roles, and
responsibilities change.
Subd. 4. [CHANGES.] Major changes in the missions,
programs, services or roles of the partner institutions shall be
made in full consultation with the partner institutions and the
systems.
Sec. 17. Minnesota Statutes 1998, section 471.59,
subdivision 1, is amended to read:
Subdivision 1. [AGREEMENT.] Two or more governmental
units, by agreement entered into through action of their
governing bodies, may jointly or cooperatively exercise any
power common to the contracting parties or any similar powers,
including those which are the same except for the territorial
limits within which they may be exercised. The agreement may
provide for the exercise of such powers by one or more of the
participating governmental units on behalf of the other
participating units. The term "governmental unit" as used in
this section includes every city, county, town, school district,
other political subdivision of this or another state, another
state, the University of Minnesota, and any agency of the state
of Minnesota or the United States, and includes any
instrumentality of a governmental unit. For the purpose of this
section, an instrumentality of a governmental unit means an
instrumentality having independent policy making and
appropriating authority.
Sec. 18. Minnesota Statutes 1998, section 583.22,
subdivision 5, is amended to read:
Subd. 5. [DIRECTOR.] "Director" means the director of
the conflict and change center at the University of Minnesota's
Humphrey Institute Minnesota extension service or the director's
designee.
Sec. 19. Laws 1986, chapter 398, article 1, section 18, as
amended by Laws 1987, chapter 292, section 37; Laws 1989,
chapter 350, article 16, section 8; Laws 1990, chapter 525,
section 1; Laws 1991, chapter 208, section 2; Laws 1993, First
Special Session chapter 2, article 6, section 2; Laws 1995,
chapter 212, article 2, section 11; Laws 1997, chapter 183,
article 3, section 29; Laws 1998, chapter 395, section 7; and
Laws 1998, chapter 402, section 6, is amended to read:
Sec. 18. [REPEALER.]
Sections 1 to 17 and Minnesota Statutes, section 336.9-501,
subsections (6) and (7), and sections 583.284, 583.285, 583.286,
and 583.305, are repealed on July 1, 1999 2001.
Sec. 20. [METRO PLAN AND SPACE UTILIZATION REPORT.]
By September 30, 1999, the board of trustees of the
Minnesota state colleges and universities shall submit to the
legislature the master academic plan for the metropolitan area
as required under Laws 1996, chapter 395, section 3, paragraph
(e), and a systemwide space utilization report.
Sec. 21. [LEARNING NETWORK II.]
The Minnesota education telecommunications council, in
conjunction with the higher education advisory council, shall
develop a plan for the governance, financing, and implementation
of the learning network II. The councils shall report on the
plan to the legislature by January 15, 2000.
Sec. 22. [CHILD CARE STUDY.]
The commissioners of human services and children, families,
and learning shall review child care program requirements for
Minnesota family investment program participants, to determine
how to better serve those participants who are approved for a
work plan, but are attending school part time without child care
eligibility. As soon as practicable, the commissioners shall
implement adjustments to program requirements that they deem
appropriate. The commissioners shall report on adjustments
implemented, if any, and their recommendations for necessary
statutory changes to the appropriate committees of the
legislature by February 1, 2000.
Sec. 23. [SHORT-TERM HEALTH CARE CURRICULA.]
By July 1, 2000, the board of trustees of the Minnesota
state colleges and universities, in consultation with relevant
industries, shall develop a short-term, competency-based,
standardized curricula in health care patient services and
community support services for persons with long-term care
needs. The standardized curricula must provide knowledge that
is applicable to persons employed in a wide range of health care
settings and human services settings, including home health care
assistants, personal care assistants, and certified nursing
assistants. By July 1, 2000, the board shall offer certificates
and two-year associate degrees that articulate into four-year
educational programs in health care services and in human
services. The board shall report to the legislature by February
15, 2000, on its progress on implementing this section.
Sec. 24. [REPEALER.]
Minnesota Statutes 1998, sections 136A.1359; and 136A.136,
are repealed June 30, 1999.
Sec. 25. [EFFECTIVE DATE.]
(a) Section 1 is effective July 1, 2000.
(b) The change in the student share of the cost of
attendance under section 5 is effective July 1, 2000.
(c) Section 19 is effective the day following final
enactment.
ARTICLE 3
PRIVATE CAREER SCHOOLS
Section 1. [141.20] [CITATION.]
Sections 141.20 to 141.35 may be cited as the Private
Career School Act.
Sec. 2. Minnesota Statutes 1998, section 141.21,
subdivision 3, is amended to read:
Subd. 3. [SOLICITOR.] "Solicitor" means a person who for a
salary or for commission, acts as an agent, independent
contractor, salesperson, or counselor in procuring or attempting
to procure recruiting students or enrollees for a course of
instruction by solicitation in program using any form made
method, at any place except on the actual business premises of
the school and except for rendering, other than only providing
public information service at the invitation or permission of a
school or educational organization.
Sec. 3. Minnesota Statutes 1998, section 141.21,
subdivision 5, is amended to read:
Subd. 5. [SCHOOL.] "School" means any person, within or
without outside the state, that who maintains, advertises,
solicits, or conducts any course of instruction program for
profit or for a tuition charge at any level other than
baccalaureate or graduate programs, and which is not
specifically exempted by the provisions of sections 141.21 to
141.36 141.35.
Sec. 4. Minnesota Statutes 1998, section 141.21,
subdivision 6, is amended to read:
Subd. 6. [COURSE OF INSTRUCTION.] "Course of instruction"
means any classroom, correspondence, or extension course of or
distance instruction; any subunit of a program; or any
combination thereof.
Sec. 5. Minnesota Statutes 1998, section 141.21, is
amended by adding a subdivision to read:
Subd. 8. [PROGRAM.] "Program" means any course or grouping
of courses that is advertised or listed in a school's catalog,
brochures, electronic display, or other publications, or for
which the school grants a formal recognition.
Sec. 6. Minnesota Statutes 1998, section 141.21, is
amended by adding a subdivision to read:
Subd. 9. [DISTANCE EDUCATION SCHOOL.] "Distance education
school" means a school that establishes, keeps, or maintains a
facility or location where a program is offered through distance
instruction.
Sec. 7. Minnesota Statutes 1998, section 141.21, is
amended by adding a subdivision to read:
Subd. 10. [DISTANCE INSTRUCTION.] "Distance instruction"
means any method of instruction outside the traditional
in-classroom instruction, including, but not limited to, the use
of the United States mail and other correspondence; Internet and
other online computer-based education; or CD-ROM
self-instruction.
Sec. 8. Minnesota Statutes 1998, section 141.21, is
amended by adding a subdivision to read:
Subd. 11. [ELECTRONIC DISPLAY.] "Electronic display" means
text, images, or sound rendered via any electronic device
designed to present information, whether generated by the device
or transmitted from another source.
Sec. 9. Minnesota Statutes 1998, section 141.25,
subdivision 1, is amended to read:
Subdivision 1. [REQUIRED.] No A school shall must not
maintain, advertise, solicit for, or conduct any course of
instruction program in Minnesota without first obtaining a
license from the office.
Sec. 10. Minnesota Statutes 1998, section 141.25,
subdivision 2, is amended to read:
Subd. 2. [CONTRACT UNENFORCEABLE.] Any A contract entered
into with any a person for a course of instruction after
November 15, 1969, program by or on behalf of any a person
operating any a school to which a license has not been
issued pursuant to under sections 141.21 to 141.36
141.35, shall be is unenforceable in any action brought
thereon.
Sec. 11. Minnesota Statutes 1998, section 141.25,
subdivision 3, is amended to read:
Subd. 3. [APPLICATION.] Application for a license shall be
on forms prepared and furnished by the office, and shall contain
include the following and such other information as the office
may require:
(a) (1) the title or name of the school, together with
ownership and controlling officers, members, managing employees,
and director;
(b) (2) the specific fields of instruction programs which
will be offered and the specific purposes of such the
instruction;
(c) (3) the place or places where such the instruction will
be given;
(d) (4) a listing of the equipment available for
instruction in each course of instruction program;
(e) (5) the maximum enrollment to be accommodated with
equipment available in each specified course of instruction
program;
(f) (6) the qualifications of instructors and supervisors
in each specified course of instruction program;
(g) (7) a current balance sheet, income statement, and
adequate supporting documentation, prepared and certified by an
independent public accountant or CPA;
(h) (8) copies of all media advertising and promotional
literature and brochures or electronic display currently used or
reasonably expected to be used by such the school;
(i) (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 school files with the office a surety bond equal to at least
$50,000 as described in subdivision 5.
Sec. 12. Minnesota Statutes 1998, section 141.25,
subdivision 5, is amended to read:
Subd. 5. [BOND.] (a) No license shall be issued to any
school which maintains, conducts, solicits for, or advertises
within the state of Minnesota any course of instruction program,
unless the applicant files with the office a continuous
corporate surety bond in the sum of $10,000 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. Such
(b) 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 $50,000, except that a school may
deposit a greater amount at its own discretion. A 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 school maintains a
surety bond equal to at least $50,000. A 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 school having a license
for the sole purpose of recruiting students in Minnesota shall
be only that paid to the school by the students recruited from
Minnesota.
(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 of $10,000 deposited by the school
under paragraph (b). 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.
(d) In lieu of bond, the applicant may deposit with the
state treasurer the a sum of $10,000 equal to the amount of the
required surety bond in cash, or securities such as may be
legally purchased by savings banks or for trust funds in an
aggregate market value of $10,000 equal to the amount of the
required surety bond.
(e) Failure of a school to post and maintain the required
surety bond or deposit under paragraph (d) may result in denial,
suspension, or revocation of the school's license.
Sec. 13. Minnesota Statutes 1998, section 141.25,
subdivision 6, is amended to read:
Subd. 6. [RESIDENT AGENT.] Schools domiciled located
outside the state of Minnesota which that offer, advertise,
solicit for, or conduct any course of instruction 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. Such The statement shall
designate the secretary of state as resident agent for service
of process in the absence of an a designated agent otherwise so
designated. In the event If a school fails to file such the
statement, the secretary of state is hereby designated as the
resident agent authorized to receive service of process. Such
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.
Sec. 14. Minnesota Statutes 1998, section 141.25,
subdivision 7, is amended to read:
Subd. 7. [MINIMUM STANDARDS.] No A license shall be issued
unless if the office first determines:
(a) (1) that the applicant has a sound financial condition
with sufficient resources available to:
(i) meet the school's financial obligations; to
(ii) refund all tuition and other charges, within a
reasonable period of time, in the event of dissolution of the
school or in the event of any justifiable claims for refund
against the school by the student body; to
(iii) provide adequate service to its students and
prospective students; and for the proper use
(iv) maintain and support of the school to be maintained;
(b) (2) that the applicant has satisfactory training
facilities with sufficient tools and equipment and the necessary
number of work stations to train prepare adequately the students
currently enrolled, and those proposed to be enrolled;
(c) (3) that the applicant employs a sufficient number of
qualified instructors trained by experience and education
teaching personnel to give provide the training educational
programs contemplated;
(d) (4) that the school has an organizational framework
with administrative and instructional personnel to provide the
programs and services it intends to offer;
(5) that the premises and conditions under which the
students work and study are sanitary, healthful, and safe,
according to modern standards;
(e) (6) that the quality and content of each occupational
course or program of instruction or study shall be of such
quality and content as to provide provides education and
training which will adequately prepare adequate preparation to
enrolled students for entry level positions in the occupation
for which trained prepared;
(f) (7) that the living quarters which are owned,
maintained, or approved by the applicant for students are
sanitary and safe;
(g) (8) that the contract or enrollment agreement used by
the school complies with the following provisions: in section
141.265;
(1) the name and address of the school must be clearly
stated;
(2) inclusion of a clear and conspicuous disclosure that
such agreement becomes a legally binding instrument upon written
acceptance of the student by the school unless canceled pursuant
to section 141.271;
(3) must contain the school's cancellation and refund
policy which shall be clearly and conspicuously entitled,
"Buyer's Right to Cancel";
(4) the total cost of the course including tuition and all
other charges shall be clearly stated;
(5) the name and description of the course, including the
number of hours or credits of classroom instruction and/or home
study lessons shall be included;
(6) no contract or agreement shall (9) that contracts and
agreements do not contain a wage assignment provision and/or or
a confession of judgment clause; and
(7) each contract or enrollment agreement shall contain 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; and
(h) (10) that there has been no adjudication of fraud or
misrepresentation in any criminal, civil, or administrative
proceeding in any jurisdiction against the school or its owner,
officers, agents, or sponsoring organization.
Sec. 15. Minnesota Statutes 1998, section 141.25,
subdivision 8, is amended to read:
Subd. 8. [FEES AND TERMS OF LICENSE.] (a) Applications An
application for an initial license under sections 141.21
to 141.36 141.35 shall be accompanied by a nonrefundable
application fee established by the office that is sufficient to
recover, but not exceed, its administrative costs.
(b) All licenses shall expire one year from the date issued
by the office, except as provided in section 141.251. Each
renewal application shall be accompanied by a nonrefundable
renewal fee established by the office that is sufficient to
recover, but does not exceed, its administrative costs.
(c) Application for renewal of license shall be made at
least 30 days before the expiration of the school's current
license. Each renewal form shall be supplied by the office. It
shall not be necessary for an applicant to supply all
information required in the initial application at the time of
renewal unless requested by the office.
Sec. 16. Minnesota Statutes 1998, section 141.25,
subdivision 9, is amended to read:
Subd. 9. [CATALOG OR, BROCHURE, OR ELECTRONIC DISPLAY.]
Before a license is issued to a school, other than one which
offers exclusively a correspondence course of instruction, the
school shall furnish to the office a catalog or, brochure
containing the following, or electronic display including:
(1) identifying data, such as volume number and date of
publication;
(2) name and address of the school and its governing body
and officials;
(3) a calendar of the school showing legal holidays,
beginning and ending dates of each course quarter, term, or
semester, and other important dates;
(4) the school policy and regulations on enrollment
including dates and specific entrance requirements for
each course program;
(5) the school policy and regulations about leave,
absences, class cuts, make-up work, tardiness, and interruptions
for unsatisfactory attendance;
(6) the school policy and regulations about standards of
progress for the student including the grading system of the
school, the minimum grades considered satisfactory, conditions
for interruption for unsatisfactory grades or progress, a
description of any probationary period allowed by the school,
and conditions of reentrance for those dismissed for
unsatisfactory progress;
(7) the 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 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 course
program, withdraws from the program, or the program is
discontinued;
(10) a description of the available facilities and
equipment;
(11) a course outline 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; and
(12) the school policy and regulations about granting
credit for previous education and training preparation;
(13) a procedure for investigating and resolving student
complaints; and
(14) the name and address of the Minnesota higher education
services office.
A school that is exclusively a distance education school is
exempt from clauses (3) and (5).
Sec. 17. Minnesota Statutes 1998, section 141.25,
subdivision 10, is amended to read:
Subd. 10. [PLACEMENT RECORDS.] (a) Before a license is
issued to a school that offers, advertises or implies a
placement service, the school shall file with the office for the
past year and thereafter at reasonable intervals determined by
the office, a certified copy of the school's placement record,
containing a list of graduates, a description of their job jobs,
name names of their employer employers, and other information as
the office may prescribe.
(b) Each school that offers a placement service shall
furnish to each prospective student, prior to enrollment,
written information concerning the percentage of the previous
year's graduates who were placed in the occupation for which
trained prepared or in related employment.
Sec. 18. Minnesota Statutes 1998, section 141.25,
subdivision 12, is amended to read:
Subd. 12. [PERMANENT RECORDS.] Before a license is issued
to a school, each A school licensed under this chapter and
located in Minnesota shall maintain a permanent records record
for all students enrolled at any time each student for 50 years
from the last date of the student's attendance. Each A school
licensed under this chapter and offering a correspondence course
of instruction distance instruction to a student located in
Minnesota shall maintain a permanent records record for each
Minnesota students enrolled at any time 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 school shall submit a plan that
meets the following requirements:
(a) (1) at least one copy of the records must be held in a
secure depository;
(b) (2) an appropriate official must be designated to
provide a student with copies of records or a transcript upon
request;
(c) (3) an alternative method of complying with paragraphs
(a) and (b) clauses (1) and (2) must be established if the
school ceases to exist; and
(d) (4) a continuous surety bond must be filed with the
office in an amount not to exceed $20,000 if the school has no
binding agreement for preserving student records or a trust must
be arranged if the school ceases to exist.
Sec. 19. [141.251] [LICENSE RENEWAL.]
Subdivision 1. [APPLICATION.] Application for renewal of a
license must be made at least 30 days before expiration of the
current license on a form provided by the office. A renewal
application shall be accompanied by a nonrefundable fee
established by the office that is sufficient to recover, but
does not exceed, its administrative costs.
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 school. A 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 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 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: degree granting status, 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. 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. 20. Minnesota Statutes 1998, section 141.26,
subdivision 2, is amended to read:
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 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, parts 3530.6500 to 3530.7800.
Sec. 21. [141.265] [INFORMATION TO STUDENTS.]
Subdivision 1. [CATALOG, BROCHURE, OR ELECTRONIC DISPLAY.]
A 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 school that
does not use a written contract or enrollment agreement.
Subd. 2. [CONTRACT INFORMATION.] A contract or enrollment
agreement used by a school must include at least the following:
(1) the name and address of the 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 school unless canceled under section 141.271;
(3) the 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.
Subd. 3. [CONTRACT COPIES.] Immediately upon signing of
the enrollment agreement or the contract by a prospective
student, the school or agent shall furnish to the prospective
student an exact duplicate copy of the enrollment agreement or
contract.
Sec. 22. Minnesota Statutes 1998, section 141.271,
subdivision 1, is amended to read:
Subdivision 1. [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT
TO REFUND STUDENT.] For the purposes of this section, "student"
means the party to the contract, whether the party is the
student, the student's parent or guardian, or other person on
behalf of the student.
Subd. 1a. [NOTICE; RIGHT TO REFUND.] Every school shall
notify each student, in writing, of acceptance or rejection. In
the event that the student is rejected by the school, all
tuition, fees and other charges shall be refunded.
Sec. 23. Minnesota Statutes 1998, section 141.271,
subdivision 2, is amended to read:
Subd. 2. [SCHOOLS USING WRITTEN CONTRACTS.] (a)
Notwithstanding anything to the contrary, every a school which
utilizes that uses a written contract or enrollment agreement
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 contract
was executed regardless of whether the course of instruction
program has started.
(b) With respect to those schools utilizing a written
contract or enrollment agreement, When a student has been
accepted by the school and has entered into a contractual
agreement with the school and gives written notice of
cancellation following the fifth business day after the date of
execution of contract, but before the start of the course of
instruction program in the case of resident schools, or before
the first lesson has been serviced by the school in the case of
correspondence (home study) distance education schools, all
tuition, fees and other charges, except 15 percent of the total
cost of the course program but not to exceed $50, shall be
refunded to the student.
Sec. 24. Minnesota Statutes 1998, section 141.271,
subdivision 3, is amended to read:
Subd. 3. [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a)
Notwithstanding anything to the contrary, every a school which
that does not utilize use a written contract or enrollment
agreement 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 school regardless of whether the course of
instruction program has started.
(b) With respect to those schools not utilizing a written
contract or enrollment agreement, When a student has been
accepted by the school and gives written notice of cancellation
following the fifth business day after the day of acceptance by
the school, but before the start of the course of
instruction program, in the case of resident schools, or before
the first lesson has been serviced by the school, in the case of
correspondence (home study) distance education schools, all
tuition, fees and other charges, except 15 percent of the total
cost of the course program but not to exceed $50, shall be
refunded to the student.
Sec. 25. Minnesota Statutes 1998, section 141.271,
subdivision 4, is amended to read:
Subd. 4. [RESIDENT SCHOOLS.] With respect to all schools
offering a resident course of instruction, When a student has
been accepted by the a school offering a resident program and
gives written notice of cancellation after the start of the
period of instruction for which the student has been charged,
but before completion of 75 percent of the period of instruction
for which the student has been charged, the amount charged for
tuition, fees, and all other charges for the completed portion
of the period of instruction for which the student has been
charged shall not exceed the pro rata be prorated as a portion
of the total charges for tuition, fees, and all other charges
that the length of the completed portion of the period of
instruction for which the student has been charged bears to its
total length, plus. An additional 25 percent of the total cost
of the period of instruction for which the student has been
charged may be added, but shall not to exceed $100. After
completion of 75 percent of the period of instruction for which
the student has been charged, no refunds are required.
Sec. 26. Minnesota Statutes 1998, section 141.271,
subdivision 5, is amended to read:
Subd. 5. [CORRESPONDENCE HOME STUDY DISTANCE EDUCATION
SCHOOLS.] With respect to all schools offering a correspondence
(home study) course of instruction, When a student has been
accepted by the a distance education school and gives written
notice of cancellation after the first lesson has been completed
by the student and serviced by the school, but before completion
of 75 percent of the course of instruction program, the amount
charged for tuition, fees and all other charges for the
completed lessons shall not exceed the pro rata be prorated as a
portion of the total charges for tuition, fees and all other
charges that the number of lessons completed by the student
bears to the total number of lessons offered, plus. An
additional 25 percent of the total cost of the course program
may be added but shall not to exceed $75. After completion of
75 percent of the course of instruction program, no refunds are
required.
Sec. 27. Minnesota Statutes 1998, section 141.271,
subdivision 6, is amended to read:
Subd. 6. [COMBINATION CORRESPONDENCE-RESIDENT DISTANCE
EDUCATION-RESIDENT SCHOOLS.] With respect to all schools
offering a combination correspondence (home study)-resident
course of instruction, When a student has been accepted by the a
school that offers a combination distance education-resident
program and gives written notice of cancellation after the start
of the course of instruction program or after the first lesson
has been completed by the student and serviced by the school,
whichever phase comes first, the school shall refund all
tuition, fees and other charges as provided for in subdivision 4
if cancellation occurs during the resident portion, and as
provided for in subdivision 5 if cancellation occurs during
the correspondence distance instruction portion; provided
that,. If the cancellation occurs before the student has
commenced one of the phases, the price of that phase shall not
be considered in making the proration and the student shall be
entitled to a full refund of the price thereof charges.
Conversely, if the student has completed a phase of the course
program before cancellation, the price thereof charges may be
retained by the school provided that the total tuition, fees and
other charges for each phase have been stated separately in the
school's catalog or electronic display and contract or
enrollment agreement.
Sec. 28. Minnesota Statutes 1998, section 141.271,
subdivision 12, is amended to read:
Subd. 12. [INSTRUMENT NOT TO BE NEGOTIATED.] No A school
shall not negotiate any promissory instrument received as
payment of tuition or other charge prior to completion of 50
percent of the course of instruction program. Prior to such
that time, such instruments may be transferred by assignment to
purchasers who shall be subject to all defenses available
against the school named as payee.
Sec. 29. Minnesota Statutes 1998, section 141.28,
subdivision 3, is amended to read:
Subd. 3. [FALSE STATEMENTS.] No A 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 course program, if such the school,
agent, or solicitor knows or reasonably should have known the
statement or representation to be false, fraudulent, deceptive,
substantially inaccurate, or misleading.
Sec. 30. Minnesota Statutes 1998, section 141.28,
subdivision 5, is amended to read:
Subd. 5. [IMPROBABLE COURSE PROGRAM COMPLETION OR
EMPLOYMENT.] No A school, agent, or solicitor shall not enroll a
prospective student when it is obvious that the prospective
student is unlikely to successfully complete a course of
instruction program or is unlikely to qualify for employment in
the vocation or field for which the training 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 school. Such The disclaimer shall be signed by
the student and shall state substantially as follows one or both
of the following: "I am fully aware that it is unlikely I will
be able to successfully complete the course of instruction
program" and/or and "I am fully aware of the improbability or
impossibility that I will qualify for employment in the vocation
or field for which the course program was designed."
Sec. 31. Minnesota Statutes 1998, section 141.29,
subdivision 1, is amended to read:
Subdivision 1. [GROUNDS.] The office may, after notice and
upon providing an opportunity for a hearing, pursuant to under
chapter 14 if requested by the parties adversely affected,
refuse to issue, refuse to renew, revoke, or suspend any a
license or solicitor's permit for any one or any combination of
the following grounds:
(a) (1) violation of any provisions of sections 141.21 to
141.36 141.35 or any rule promulgated adopted by the office;
(b) (2) furnishing to the office false, misleading, or
incomplete information;
(c) (3) presenting to prospective students information
relating to the school which that is false, fraudulent,
deceptive, substantially inaccurate, or misleading;
(d) (4) refusal to allow reasonable inspection or supply
reasonable information after written request therefor by the
office;
(e) (5) the existence of any circumstance which that would
be grounds for the refusal of an initial or renewal license
under section 141.25.
Sec. 32. Minnesota Statutes 1998, section 141.31, is
amended to read:
141.31 [INJUNCTION.]
Upon application of the attorney general the district
courts shall have jurisdiction to enjoin any violation of
sections 141.21 to 141.36 141.35.
Sec. 33. Minnesota Statutes 1998, section 141.32, is
amended to read:
141.32 [PENALTY.]
Violation of any provisions a provision of this chapter
shall be a misdemeanor. Each day's failure to comply with this
chapter shall be a separate violation. The office shall adopt
rules establishing a list of civil penalties and the fine
associated with each violation. Fines for violations shall not
exceed $500 per day per violation.
Sec. 34. Minnesota Statutes 1998, section 141.35, is
amended to read:
141.35 [EXEMPTIONS.]
None of the provisions of Sections 141.21 to 141.36 141.35
shall not apply to the following:
(a) (1) colleges authorized by the laws of Minnesota or of
any other state or foreign country to grant degrees public
post-secondary institutions;
(2) private post-secondary institutions registered under
sections 136A.61 to 136A.71 that are nonprofit, or that are for
profit and registered under sections 136A.61 to 136A.71 as of
December 31, 1998, or are approved to offer exclusively
baccalaureate or postbaccalaureate programs;
(b) (3) schools of nursing accredited by the state board of
nursing or an equivalent public board of another state or
foreign country;
(c) public schools as defined in section 120A.05,
subdivisions 9, 11, 13, and 17;
(d) (4) private schools complying with the requirements of
section 120A.22, subdivision 2 4;
(e) private and parochial nonprofit schools exempt from
taxation under the constitution of Minnesota;
(f) (5) courses taught to students in a valid
apprenticeship program taught by or required by a trade union;
(g) (6) schools exclusively engaged in training physically
or mentally handicapped persons for the state of Minnesota;
(h) (7) schools now or hereafter licensed by boards
authorized under Minnesota law to issue such licenses;
(i) (8) schools and educational programs, or training
programs, conducted 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;
(j) (9) schools engaged exclusively in the teaching of
purely avocational, recreational, or remedial subjects as
determined by the office. Private schools teaching a method or
procedure to increase the speed with which a student reads are
not within this exemption;
(k) (10) driver training schools and instructors as defined
in section 171.33, subdivisions 1 and 2;
(l) (11) classes, courses, or programs conducted by a bona
fide trade, professional, or fraternal organization, solely for
that organization's membership;
(m) courses of instruction (12) programs in the fine arts
provided by organizations exempt from taxation pursuant to under
section 290.05 and registered with the attorney general pursuant
to 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;
(n) (13) classes, courses, or programs intended to fulfill
the continuing education requirements for licensure or
certification in a profession, which classes, courses, or
programs that have been approved by a legislatively or
judicially established board or agency responsible for
regulating the practice of the profession, and which that are
offered primarily to a person who currently practices an
individual practicing the profession;
(o) (14) classes, courses, or programs intended to prepare
students to sit for undergraduate, graduate, postgraduate, or
occupational licensing and occupational entrance examinations;
(p) (15) classes, courses, or programs of a seminar nature
providing 16 or fewer clock hours of instruction that are not
part of the curriculum for an occupation or are not intended to
prepare a person for entry level employment;
(q) (16) classes, courses, or programs of a seminar nature
providing instruction in personal development, modeling, or
acting; and
(r) (17) 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; and
(18) schools with no physical presence in Minnesota engaged
exclusively in offering distance instruction that are located in
and regulated by other states or jurisdictions.
Sec. 35. [REPORT REQUIRED.]
(a) The higher education services office shall conduct a
study of the licensure and regulation of private, for-profit
education and training providers in Minnesota and make
recommendations to the legislature regarding:
(1) the appropriate level of regulation of providers of
accelerated custom-designed training courses or programs; and
(2) changes in statutes or rules necessary to reflect the
increased availability of courses and programs offered through
electronic means and the use of the Internet to communicate
information regarding courses and programs.
(b) The recommendations submitted shall:
(1) identify and define terminology associated with
accelerated custom-designed training opportunities;
(2) delineate the minimum standards providers must meet;
(3) delineate the procedures providers must follow to
validate that they have met the standards established; and
(4) specify the providers' contractual and financial
obligations to individuals participating in the training
provided by the providers.
(c) In developing its recommendations, the office shall
consult with the Minnesota High Technology Association and
providers that may be affected by changes in the statutes or
rules. A report of the findings and recommendations shall be
submitted to the chairs of the senate higher education budget
division and the house higher education finance committee by
January 15, 2000.
Sec. 36. [REPEALER.]
Minnesota Statutes 1998, sections 141.22; 141.25,
subdivisions 9a, 9b, and 11; and 141.36, are repealed.
Presented to the governor May 21, 1999
Signed by the governor May 25, 1999, 3:41 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes