1998 Minnesota Statutes

     141.25 License. 

    Subdivision 1.    Required.  No school shall maintain, 
 advertise, solicit for, or conduct any course of instruction in 
 Minnesota without first obtaining a license from the office.  

    Subd. 2.    Contract unenforceable.  Any contract 
 entered into with any person for a course of instruction after 
 November 15, 1969, by or on behalf of any person operating any 
 school to which a license has not been issued pursuant to 
 sections 141.21 to 141.36, shall be unenforceable in any action 
 brought thereon.  

    Subd. 3.    Application.  Application for a license 
 shall be on forms prepared and furnished by the office, and 
 shall contain the following and such other information as the 
 office may require: 

    (a) The title or name of the school, together with 
 ownership and controlling officers, members, managing employees, 
 and director; 

    (b) The specific fields of instruction which will be 
 offered and the specific purposes of such instruction; 

    (c) The place or places where such instruction will be 
 given; 

    (d) A listing of the equipment available for instruction in 
 each course of instruction; 

    (e) The maximum enrollment to be accommodated with 
 equipment available in each specified course of instruction; 

    (f) The qualifications of instructors and supervisors in 
 each specified course of instruction; 

    (g) A current balance sheet, income statement and adequate 
 supporting documentation, prepared and certified by an 
 independent public accountant or CPA; 

    (h) Copies of all media advertising and promotional 
 literature and brochures currently used or reasonably expected 
 to be used by such school; 

    (i) Copies of all Minnesota enrollment agreement forms and 
 contract forms and all enrollment agreement forms and contract 
 forms used in Minnesota.  

    Subd. 4.    Certification.  Each application shall be 
 signed and certified to under oath by the proprietor if the 
 applicant is a proprietorship, by the managing partner if the 
 applicant is a partnership, or by the authorized officers of the 
 applicant if the applicant is a corporation, association, 
 company, firm, society or trust.  

    Subd. 5.    Bond.  No license shall be issued to any 
 school which maintains, conducts, solicits for, or advertises 
 within the state of Minnesota any course of instruction, unless 
 the applicant files with the office a continuous corporate 
 surety bond in the sum of $10,000 conditioned upon the faithful 
 performance of all contracts and agreements with students made 
 by the applicant.  Such 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.  The surety of any such 
 bond may cancel it upon giving 60 days' notice in writing to the 
 office and shall be relieved of liability for any breach of 
 condition occurring after the effective date of cancellation.  
 In lieu of bond, the applicant may deposit with the state 
 treasurer the sum of $10,000 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.  

    Subd. 6.    Resident agent.  Schools domiciled outside 
 the state of Minnesota which offer, advertise, solicit for, or 
 conduct any course of instruction 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 statement shall designate the secretary of state 
 as resident agent for service of process in the absence of an 
 agent otherwise so designated.  In the event a school fails to 
 file such statement, the secretary of state is hereby designated 
 as the resident agent authorized to receive service of process.  
 Such authorization shall be irrevocable as to causes of action 
 arising out of transactions occurring prior to the filing of 
 written notice of withdrawal from the state of Minnesota filed 
 with the secretary of state.  

    Subd. 7.    Minimum standards.  No license shall be 
 issued unless the office first determines: 

    (a) that the applicant has a sound financial condition with 
 sufficient resources available to meet the school's financial 
 obligations; to 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 provide adequate 
 service to its students and prospective students; and for the 
 proper use and support of the school to be maintained; 

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

    (c) that the applicant employs a sufficient number of 
 qualified instructors trained by experience and education to 
 give the training contemplated; 

    (d) that the premises and conditions under which the 
 students work and study are sanitary, healthful, and safe, 
 according to modern standards; 

    (e) that each occupational course or program of instruction 
 or study shall be of such quality and content as to provide 
 education and training which will adequately prepare enrolled 
 students for entry level positions in the occupation for which 
 trained; 

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

    (g) that the contract or enrollment agreement used by the 
 school complies with the following provisions: 

    (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 contain a wage 
 assignment provision and/or a confession of judgment clause; 

    (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) 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.  

    Subd. 8.    Fees and terms of license.  (a) Applications 
 for initial license under sections 141.21 to 141.36 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.  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. 

    Subd. 9.    Catalog or brochure.  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: 

    (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) school policy and regulations on enrollment including 
 dates and specific entrance requirements for each course; 

    (5) school policy and regulations about leave, absences, 
 class cuts, make-up work, tardiness, and interruptions for 
 unsatisfactory attendance; 

    (6) 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) school policy and regulations about student conduct and 
 conditions for dismissal for unsatisfactory conduct; 

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

    (9) 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, withdraws, or 
 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) policy and regulations about granting credit for 
 previous education and training. 

    Subd. 9a.    Correspondence catalog.  Before a license 
 is issued to a school exclusively offering a correspondence 
 course of instruction, the school shall furnish to the office a 
 catalog or brochure containing the following: 

    (1) 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 reenrollment for those students terminated for 
 unsatisfactory progress; 

    (2) a course outline for each course offered showing course 
 objectives, subjects or units in each lesson of the course, type 
 of work or skill to be learned, and the total number of lessons 
 for each course of instruction; and 

    (3) all items listed in subdivision 9, except items in 
 clauses (3) and (5). 

    Subd. 9b.    Delivery of catalog.  A school or its agent 
 shall deliver the catalog or brochure required in subdivisions 9 
 and 9a to each prospective student in such time or manner as to 
 provide the prospective student ample opportunity to read the 
 catalog or brochure before signing any contract or enrollment 
 agreement or before being accepted by a school which does not 
 utilize a written contract or enrollment agreement. 

    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, name 
 of their employer, 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. 

    Subd. 11.    Contracts.  Immediately upon signing of 
 the enrollment agreement or the contract by the prospective 
 student the school or agent thereof shall furnish to the 
 prospective student an exact duplicate copy of such enrollment 
 agreement or contract.  

    Subd. 12.    Permanent records.  Before a license is 
 issued to a school, each school located in Minnesota shall 
 maintain permanent records for all students enrolled at any 
 time.  Each school offering a correspondence course of 
 instruction to a student located in Minnesota shall maintain 
 permanent records for Minnesota students enrolled at any time.  
 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) at least one copy of the records must be held in a 
 secure depository; 

    (b) an appropriate official must be designated to provide a 
 student with copies of records or a transcript upon request; 

    (c) an alternative method of complying with paragraphs (a) 
 and (b) must be established if the school ceases to exist; and 

    (d) 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. 

    HIST: 1969 c 866 s 5; 1971 c 781 s 1,2; 1973 c 714 s 3-9; 1980 
 c 559 s 1; 1Sp1985 c 11 s 67-70; 1986 c 444; 1989 c 329 art 12 s 
 4; 1990 c 562 art 3 s 9,10; 1991 c 265 art 8 s 10; 1992 c 513 
 art 1 s 27; 1Sp1993 c 2 art 2 s 21; 1995 c 212 art 3 s 43,59; 
 1996 c 366 s 2