1998 Minnesota Statutes

CHAPTER 141. Private business, trade, and correspondence schools

  141.01 Repealed, 1969 c 866 s 17 

  141.02 Repealed, 1969 c 866 s 17 

  141.03 Repealed, 1969 c 866 s 17 

  141.04 Repealed, 1969 c 866 s 17 

  141.05 Repealed, 1969 c 866 s 17 

  141.06 Repealed, 1969 c 866 s 17 

  141.07 Repealed, 1969 c 866 s 17 

  141.08 Repealed, 1969 c 866 s 17 

  141.09 Repealed, 1969 c 866 s 17 

  141.10 Repealed, 1969 c 866 s 17 

  141.11 Repealed, 1969 c 866 s 17 

     141.21 Definitions. 

    Subdivision 1.    Words, terms and phrases.  The 
 following words, terms and phrases shall have the meanings 
 ascribed to them in this section.  

    Subd. 1a.    Office.  "Office" means the higher 
 education services office. 

    Subd. 2. Repealed, 1992 c 513 art 1 s 28 

    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 students or enrollees for a course of instruction by 
 solicitation in any form made at any place except on the actual 
 business premises of the school and except for rendering public 
 information service at the invitation or permission of a school 
 or educational organization.  

    Subd. 4.    Person.  "Person" means any individual, 
 partnership, company, firm, society, trust, association, or 
 corporation or any combination thereof.  

    Subd. 5.    School.  "School" means any person, within 
 or without the state, that maintains, advertises, solicits or 
 conducts any course of instruction for profit or for a tuition 
 charge, and which is not specifically exempted by the provisions 
 of sections 141.21 to 141.36.  

    Subd. 6.    Course of instruction.  "Course of 
 instruction" means any classroom, correspondence, or extension 
 course of instruction or any combination thereof.  

    Subd. 7.    Placement service.  "Placement service" 
 means a service offered or advertised by a school for the 
 purpose of assisting the student in obtaining employment.  

    HIST: 1969 c 866 s 1; 1973 c 714 s 1,2; 1986 c 444; 1992 c 513 
 art 1 s 18; 1995 c 212 art 3 s 59 

     141.22 Citation.  

    Sections 141.21 to 141.36 may be cited as the Private 
 Business, Trade and Correspondence School Act.  

    HIST: 1969 c 866 s 2 

     141.23 Rules. 

    The office may adopt rules according to chapter 14 to carry 
 out the provisions of this chapter. 

    HIST: 1969 c 866 s 3; 1982 c 424 s 130; 1Sp1985 c 11 s 66; 
 1992 c 513 art 1 s 27; 1995 c 212 art 3 s 59 

  141.24 Repealed, 1983 c 260 s 68 

     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 

     141.26 Permits for solicitors. 

    Subdivision 1.    Required.  A solicitor representing a 
 school must obtain a solicitor's permit from the office before 
 soliciting students to enroll in such school.  Such permit shall 
 expire one year following the date of issuance.  Application for 
 renewal of permit shall be made annually.  

    Subd. 2.    Application for permit.  (a) The application 
 for the permit shall state the full name, address, previous 
 employment, and such other information concerning the solicitor 
 applicant as the office may require.  

    (b) The application shall have attached to it a certified 
 affidavit signed by a 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.  

    Subd. 3.    Refusal of permit.  No permit shall be 
 issued to any solicitor unless such solicitor files with the 
 office a continuous corporate surety bond in the sum of $2,000 
 conditioned upon the faithful performance of all contracts and 
 agreements with the students made by the solicitor.  Such bonds 
 shall run to the state of Minnesota and to any person who may 
 have cause of action against the applicant arising at any time 
 after the bond is filed and before it is canceled for breach of 
 any contract or agreement made by the solicitor with any 
 student.  The aggregate liability of the surety for all breaches 
 of the conditions of the bond shall not exceed the principal sum 
 of $2,000.  The surety of any such bond may cancel it upon 
 giving 60 days' notice in writing to the office and shall be 
 relieved of liability for any breach of condition occurring 
 after the effective date of cancellation.  In lieu of bond, the 
 solicitor may deposit with the state treasurer the sum of $2,000.

    Subd. 4.    Additional permits.  A solicitor 
 representing more than one school must obtain a separate permit 
 for each school represented; however when a solicitor represents 
 schools having a common ownership, only one permit shall be 
 required.  

    Subd. 5.    Fee.  The initial and renewal application 
 for each permit shall be accompanied by a nonrefundable fee as 
 established by the office. 

    Subd. 6.    Contract; validity.  Any contract entered 
 into by a solicitor for a licensed school shall be unenforceable 
 in any action brought thereon if the solicitor does not hold a 
 valid permit as required by this section.  

    HIST: 1969 c 866 s 6; 1971 c 781 s 3; 1973 c 714 s 10,11; 
 1Sp1985 c 11 s 71,72; 1989 c 329 art 12 s 5; 1991 c 265 art 8 s 
 11; 1992 c 513 art 1 s 27; 1Sp1993 c 2 art 2 s 22,23; 1995 c 212 
 art 3 s 59; 1996 c 366 s 3 

  141.27 Repealed, 1973 c 714 s 21 

     141.271 Refunds. 

    Subdivision 1.    Notice of acceptance or rejection; 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.  

    Subd. 2.    Schools using written contracts.  (a) 
 Notwithstanding anything to the contrary, every school which 
 utilizes 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 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 in the case of resident schools, or before the first 
 lesson has been serviced by the school in the case of 
 correspondence (home study) schools, all tuition, fees and other 
 charges, except 15 percent of the total cost of the course but 
 not to exceed $50, shall be refunded to the student.  

    Subd. 3.    Schools not using written contracts.  (a) 
 Notwithstanding anything to the contrary, every school which 
 does not utilize 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 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, 
 in the case of resident schools, or before the first lesson has 
 been serviced by the school, in the case of correspondence (home 
 study) schools, all tuition, fees and other charges, except 15 
 percent of the total cost of the course but not to exceed $50, 
 shall be refunded to the student. 

    Subd. 4.    Resident schools.  With respect to all 
 schools offering a resident course of instruction, when a 
 student has been accepted by the school 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 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 25 percent of the total cost of 
 the period of instruction for which the student has been charged 
 but 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.  

    Subd. 5.    Correspondence home study schools.  With 
 respect to all schools offering a correspondence (home study) 
 course of instruction, when a student has been accepted by the 
 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, the amount charged for tuition, fees and all other 
 charges for the completed lessons shall not exceed the pro rata 
 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 25 percent of 
 the total cost of the course but not to exceed $75.  After 
 completion of 75 percent of the course of instruction, no 
 refunds are required.  

    Subd. 6.    Combination correspondence-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 school and gives written 
 notice of cancellation after the start of the course of 
 instruction 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 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.  Conversely, if 
 the student has completed a phase of the course before 
 cancellation, the price thereof 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 and 
 contract or enrollment agreement.  

    Subd. 7.    Equipment and supplies.  The fair market 
 retail price, if separately stated in the catalog and contract 
 or enrollment agreement, of equipment or supplies furnished to 
 the student, which the student fails to return in condition 
 suitable for resale within ten business days following 
 cancellation may be retained by the school and may be deducted 
 from the total cost for tuition, fees and all other charges when 
 computing refunds.  

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

    Subd. 8.    Time of refund.  Each school shall 
 acknowledge in writing any valid notice of cancellation within 
 ten business days after the receipt of such notice and within 30 
 business days shall refund to the student any amounts due and 
 arrange for termination of the student's obligation to pay any 
 sum in excess of that due under the cancellation and refund 
 policy.  

    Subd. 9.    Limitation.  A school cannot make its 
 refund policy conditional upon compliance with the school's 
 regulations or rules of conduct.  

    Subd. 10.    Cancellation occurrence.  Written notice 
 of cancellation shall take place on the date the letter of 
 cancellation is postmarked or, in the cases where the notice is 
 hand carried, it shall occur on the date the notice is delivered 
 to the school.  

    Subd. 11.    Date of execution.  The date of execution 
 of the contract or enrollment agreement shall be presumed to be 
 the date of delivery of the notice of acceptance; and if 
 delivered by mail, the postmark date of the letter of acceptance.

    Subd. 12.    Instrument not to be negotiated.  No 
 school shall negotiate any promissory instrument received as 
 payment of tuition or other charge prior to completion of 50 
 percent of the course of instruction.  Prior to such time, such 
 instruments may be transferred by assignment to purchasers who 
 shall be subject to all defenses available against the school 
 named as payee.  

    Subd. 13.    Cancellation of enrollment.  If a student's 
 enrollment in a school is canceled for any reason, the school 
 shall notify any agency known to the school to be providing 
 financial aid to the student of the cancellation within 30 days. 

    HIST: 1973 c 714 s 12; 1980 c 559 s 2,3; 1986 c 444; 1996 c 
 366 s 4 

     141.28 Prohibitions. 

    Subdivision 1.    Not to advertise state approval.  
 Schools, agents of schools, and solicitors may not advertise or 
 represent in writing or orally that such school is approved or 
 accredited by the state of Minnesota, except that any school, 
 agent, or solicitor may advertise that the school and solicitor 
 have been duly licensed by the state.  

    Subd. 2.    Unlawful designation.  No school organized 
 after November 15, 1969, shall apply to itself either as a part 
 of its name or in any other manner the designation of "college" 
 or "university" unless such school applies for and receives 
 certification from the office that it meets appropriate 
 standards and is entitled to such designation.  Operating 
 schools now using such designation may continue use thereof.  

    Subd. 3.    False statements.  No school, agent, or 
 solicitor shall make, or cause to be made, any statement or 
 representation, oral, written or visual, in connection with the 
 offering or publicizing of a course, if such school, agent or 
 solicitor knows or reasonably should have known the statement or 
 representation to be false, fraudulent, deceptive, substantially 
 inaccurate or misleading.  

    Subd. 4.    Acceptance of contracts.  No school shall 
 accept contracts, enrollment agreements or enrollment 
 applications from an agent or solicitor who does not have a 
 current permit.  

    Subd. 5.    Improbable course completion or employment.  
  No school, agent or solicitor shall enroll a prospective 
 student when it is obvious that the prospective student is 
 unlikely to successfully complete a course of instruction or is 
 unlikely to qualify for employment in the vocation or field for 
 which the training 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 disclaimer shall be signed 
 by the student and shall state substantially as follows:  "I am 
 fully aware that it is unlikely I will be able to successfully 
 complete the course of instruction" and/or "I am fully aware of 
 the improbability or impossibility that I will qualify for 
 employment in the vocation or field for which the course was 
 designed."  

    HIST: 1969 c 866 s 8; 1973 c 714 s 13-15; 1Sp1985 c 11 s 73; 
 1986 c 444; 1992 c 513 art 1 s 27; 1995 c 212 art 3 s 59 

     141.29 Revocation of license or permit. 

    Subdivision 1.    Grounds.  The office may, after 
 notice and upon providing an opportunity for a hearing, pursuant 
 to chapter 14 if requested by the parties adversely affected, 
 refuse to issue, refuse to renew, revoke, or suspend any license 
 or solicitor's permit for any one or any combination of the 
 following grounds: 

    (a) Violation of any provisions of sections 141.21 to 
 141.36 or any rule promulgated by the office; 

    (b) Furnishing to the office false, misleading, or 
 incomplete information; 

    (c) Presenting to prospective students information relating 
 to the school which is false, fraudulent, deceptive, 
 substantially inaccurate or misleading; 

    (d) Refusal to allow reasonable inspection or supply 
 reasonable information after written request therefor by the 
 office; 

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

    Subd. 2.    Appeal.  Any order refusing, revoking, or 
 suspending a school's license or a solicitor's permit is 
 appealable in accordance with chapter 14.  Where a school has 
 been operating and its license has been revoked, suspended, or 
 refused by the office, the order is not effective until the 
 final determination of the appeal unless immediate effect is 
 ordered by the court.  

    Subd. 3.    Powers and duties.  The office shall have 
 (in addition to the powers and duties now vested therein by law) 
 the following powers and duties: 

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

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

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

    HIST: 1969 c 866 s 9; 1973 c 714 s 16,17; 1982 c 424 s 130; 
 1983 c 247 s 61; 1985 c 248 s 70; 1986 c 444; 1992 c 513 art 1 s 
 27; 1995 c 212 art 3 s 59; 1996 c 366 s 5 

     141.30 Inspection.  

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

    (b) No agent or employee of the state of Minnesota shall 
 divulge to any person other than a member of the office, or duly 
 constituted law enforcement official, any data obtained from an 
 inspection of the financial records of a school, except in 
 connection with a legal or administrative proceeding commenced 
 to enforce a requirement of law.  

    HIST: 1969 c 866 s 10; 1973 c 714 s 18; 1986 c 444; 1992 c 513 
 art 1 s 27; 1995 c 212 art 3 s 59 

     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.  

    HIST: 1969 c 866 s 11 

     141.32 Penalty. 

    Violation of any provisions of this chapter shall be a 
 misdemeanor.  Each day's failure to comply with this chapter 
 shall be a separate violation.  

    HIST: 1969 c 866 s 12; 1971 c 23 s 13; 1973 c 714 s 19; 
 1Sp1985 c 11 s 74 

  141.33 Repealed, 1996 c 310 s 1 

  141.34 Repealed, 1996 c 310 s 1 

     141.35 Exemptions. 

    None of the provisions of sections 141.21 to 141.36 shall 
 apply to the following: 

    (a) colleges authorized by the laws of Minnesota or of any 
 other state or foreign country to grant degrees; 

    (b) 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) private schools complying with the requirements of 
 section 120A.22, subdivision 2; 

    (e) private and parochial nonprofit schools exempt from 
 taxation under the constitution of Minnesota; 

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

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

    (h) schools now or hereafter licensed by boards authorized 
 under Minnesota law to issue such licenses; 

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

    (j) 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) driver training schools and instructors as defined in 
 section 171.33, subdivisions 1 and 2; 

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

    (m) courses of instruction in the fine arts provided by 
 organizations exempt from taxation pursuant to section 290.05 
 and registered with the attorney general pursuant to chapter 
 309.  "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) classes, courses, or programs intended to fulfill the 
 continuing education requirements for licensure or certification 
 in a profession, which classes, courses, or programs have been 
 approved by a legislatively or judicially established board or 
 agency responsible for regulating the practice of the 
 profession, and which are offered primarily to a person who 
 currently practices the profession; 

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

    (p) classes, courses, or programs of a seminar nature 
 providing 16 or fewer 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) classes, courses, or programs of a seminar nature 
 providing instruction in personal development, modeling, or 
 acting; and 

    (r) 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.  

    HIST: 1969 c 866 s 15; 1973 c 714 s 20; 1977 c 59 s 1; 1980 c 
 559 s 4; 1989 c 209 art 1 s 13; art 2 s 1; 1990 c 562 art 3 s 
 11; 1992 c 513 art 1 s 27; 1995 c 212 art 3 s 59; 1998 c 397 art 
 11 s 3 

     141.36 Public policy. 

    It shall be the public policy of the state to protect all 
 persons and schools covered by sections 141.21 to 141.36 from 
 unfounded charges, complaints or harassment, and to protect the 
 interests of prospective and enrolled students and to inform the 
 public by the dissemination of public information regarding 
 private business, trade, and correspondence schools licensed 
 pursuant to this chapter, provided that data obtained pursuant 
 to section 141.30 shall not be divulged except as therein 
 provided. 

    HIST: 1969 c 866 s 18; 1977 c 449 s 18