Payments to postsecondary institutions and schools for the postsecondary enrollment options program modified.

A bill for an act

relating to education; modifying payments to postsecondary institutions and schools

for the postsecondary enrollment options program; amending Minnesota Statutes

2025 Supplement, section 124D.09, subdivision 13.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 124D.09, subdivision 13, is

amended to read:

Subd. 13.

Financial arrangements.

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(a)
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For a pupil enrolled in a course under this section,

the department must make payments according to this subdivision for courses that were

taken for secondary credit.

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(b)
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The department must not make payments to a school district, charter school, Tribal

contract school, or postsecondary institution for a course taken for postsecondary credit

only. The department must not make payments to a postsecondary institution for a course

from which a student officially withdraws during the first ten business days of the

postsecondary institution's quarter or semester or who has been absent from the postsecondary

institution for the first ten business days of the postsecondary institution's quarter or semester

and is not receiving instruction in the home or hospital.
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If the student officially withdraws

within 11 to 30 business days after the start of the postsecondary institution's quarter or

semester, the department must prorate the payment to the postsecondary institution under

paragraph (c), clause (1) or (2), by the ratio of the business days prior to the withdrawal to

the total business days for the course. If the student enrolls in a course in the student's high

school in place of a course from which the student has withdrawn, the department must pay

to the student's school district or charter school the difference between the amount calculated

in paragraph (c) and the prorated amount paid to the postsecondary institution.
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(c)
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A postsecondary institution shall receive the following:

(1) for an institution granting quarter credit, the reimbursement per credit hour shall be

an amount equal to 88 percent of the product of the formula allowance minus $425, multiplied

by 1.2, and divided by 45; or

(2) for an institution granting semester credit, the reimbursement per credit hour shall

be an amount equal to 88 percent of the product of the general revenue formula allowance

minus $425, multiplied by 1.2, and divided by 30.

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(d)
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The department must pay to each postsecondary institution 100 percent of the amount

in
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paragraph (c),
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clause (1) or (2)
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,
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within 45 days of receiving initial enrollment information

each quarter or semester. If changes in enrollment occur during a quarter or semester, the

change shall be reported by the postsecondary institution at the time the enrollment

information for the succeeding quarter or semester is submitted. At any time the department

notifies a postsecondary institution that an overpayment has been made, the institution shall

promptly remit the amount due.

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EFFECTIVE DATE.

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This section is effective July 1, 2026.

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