Omnibus Higher Education policy bill

A bill for an act

relating to higher education; modifying student aid reporting requirements; requiring

additional accommodations for parenting students; modifying American Indian

Scholars program eligibility; modifying provisions related to private career schools;

modifying provisions related to private and out-of-state public postsecondary

institutions; expanding eligibility for paid blood donation leave to include

employees of the Minnesota State Colleges and Universities; requiring

postsecondary institutions to provide priority registration for pregnant and parenting

students; limiting the governor's appointment power to fill vacancies on the Board

of Regents of the University of Minnesota; modifies postsecondary attainment

goal; requiring reports; amending Minnesota Statutes 2024, sections 43A.187;

135A.012; 135A.121, subdivision 2; 136A.053; 136A.091, subdivisions 2, 9;

136A.121, subdivision 2; 136A.1215, subdivision 5; 136A.1241, subdivision 8;

136A.125, subdivision 2; 136A.1274, subdivision 4; 136A.1275, subdivision 4;

136A.1465, subdivision 10; 136A.233, subdivision 3; 136A.62, by adding a

subdivision; 136A.64, subdivision 1; 136A.65, subdivision 8; 136A.653,

subdivisions 1b, 3a; 136A.672, subdivision 5; 136A.675, subdivision 1, by adding

a subdivision; 136A.821, subdivisions 13, 16, 17; 136A.822, subdivisions 4, 10,

12, by adding a subdivision; 136A.823, subdivisions 1, 3; 136A.826, subdivision

1; 136A.827, subdivisions 1, 4; 136A.828, subdivision 6; 136A.829, subdivisions

1, 3; 136A.8295, subdivision 5; 136A.83; 136G.03, subdivisions 30, 31, by adding

a subdivision; 136G.05, subdivision 10; 136G.13, by adding a subdivision;

137.0246, by adding a subdivision; 137.39, by adding subdivisions; Minnesota

Statutes 2025 Supplement, sections 135A.1582, subdivisions 1, 2, 3; 136A.246,

subdivision 1a; 136A.69, subdivision 1; 136A.82, subdivision 1; 136A.821,

subdivisions 5, 21; 136A.822, subdivisions 6, 8, 13; 136A.824, subdivisions 1, 2;

136A.833, subdivisions 1, 2; proposing coding for new law in Minnesota Statutes,

chapter 136A; repealing Minnesota Statutes 2024, sections 124D.09, subdivision

10a; 136A.657; 136A.827, subdivisions 1b, 2; 136A.834, subdivisions 2, 3, 4;

136G.03, subdivision 11; 136G.09, subdivision 10; Minnesota Statutes 2025

Supplement, section 136A.834, subdivisions 1, 5.

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

Section 1.

Minnesota Statutes 2024, section 43A.187, is amended to read:

43A.187 BLOOD DONATION LEAVE.

A state employee must be granted leave from work with 100 percent of pay to donate

blood at a location away from the place of work. The total amount of leave used under this

section may not exceed three hours in a 12-month period, and must be determined by the

employee. A state employee seeking leave from work under this section must provide 14

days' notice to the appointing authority. This leave must not affect the employee's vacation

leave, pension, compensatory time, personal vacation days, sick leave, earned overtime

accumulation, or cause a loss of seniority.
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For the purposes of this section, "state employee"

does not include an employee of the Minnesota State Colleges and Universities.
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Sec. 2.

Minnesota Statutes 2024, section 135A.012, is amended to read:

135A.012
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HIGHER EDUCATION
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EDUCATIONAL
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ATTAINMENT GOAL.

Subdivision 1.

Purpose.

This section sets a goal for postsecondary education and

workforce training credential attainment for Minnesota residents.

Subd. 2.

Postsecondary credentials.

The number of Minnesota residents ages
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25 to 44
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24 to 55
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years who hold postsecondary
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or industry-recognized
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credentials should be increased

to at least
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70
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75
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percent by
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2025
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the end of the 2040 calendar year, with subgoals for critical

educational benchmarks in early childhood and kindergarten through grade 12 education

to be established under subdivision 6
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.

Subd. 3.

Rights not created.

The attainment goal in this section is not to the exclusion

of any other goals and does not confer a right or create a claim for any person.

Subd. 4.

Data development and analyses.

The Office of Higher Education shall work

with the state demographer's office to measure progress towards the attainment of the goal

specified in subdivision 2. The United States Census Bureau data shall be used to calculate

the number of individuals in the state who hold a postsecondary degree. The Office of

Higher Education
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,
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and the state
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demographer's office
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, the Department of Employment and

Economic Development, and the Department of Labor and Industry
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shall develop a

methodology to estimate the number of individuals that hold a credential awarded by a

postsecondary institution or
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, when possible,
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recognized by an industry authority as their

highest credential using data available at the time that the analysis is completed.

Subd. 5.

Reporting.

(a) Beginning in 2016 and every year thereafter, the Office of

Higher Education, in collaboration with the state demographer's office,
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the Department of

Children, Youth, and Families, and the Department of Education,
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shall, by October 15,

report to the chairs and ranking minority members of the legislative committees with primary

jurisdiction over higher education policy and finance on the progress towards meeting or

exceeding the goal
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and subgoals
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of this section.

(b) Meeting and maintaining the goal of
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70
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75
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percent of Minnesota residents ages
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25

to 44
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24 to 55
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years holding a postsecondary or
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, when possible,
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industry-recognized

credential will likely be difficult without achieving attainment rates that are comparable

across all race and ethnicity groups
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and regions of the state, using existing statewide

economic development regions, and by gender
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. The Office of Higher Education shall utilize

benchmarks of
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30
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50
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percent
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or higher
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and
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50
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75
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percent
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or higher
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to report progress by
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race and ethnicity groups
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these subpopulations
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toward meeting the educational attainment

rate goal of
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70
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75
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percent.
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The Office of Higher Education will additionally report on interim

progress of these subpopulations toward the 75 percent goal in 2031 and 2036.
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Subd. 6.

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Implementation and coordination.

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The Office of Higher Education, in

collaboration with the Minnesota P-20 Education Partnership, shall jointly implement,

monitor, assess, and report on progress toward meeting the attainment goal established

under subdivision 2. Activities under this subdivision include but are not limited to:

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(1) ongoing consultation with relevant stakeholders;

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(2) development of a strategic plan that identifies key metrics and initiatives that ensure

all Minnesotans have the academic preparation and access necessary to ultimately attain a

postsecondary or, when possible, industry-recognized credential;

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(3) collaborating with other state agencies and additional key stakeholders to ensure

alignment with other statewide goals and priorities; and

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(4) identifying subgoals for critical benchmarks in early childhood and kindergarten

through grade 12 education that assist in reaching the attainment goal.

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Sec. 3.

Minnesota Statutes 2024, section 135A.121, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

To be eligible each year for the program a student must:

(1) be enrolled in an undergraduate certificate, diploma, or degree program at the

University of Minnesota or a Minnesota state college or university;

(2) be either (i) a
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Minnesota
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student eligible for a
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resident
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for resident tuition purposes
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tuition rate, or its equivalent,
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who is an enrolled member or citizen of a federally recognized

American Indian Tribe or Canadian First Nation, or (ii) an enrolled member or citizen of a

Minnesota Tribal Nation, regardless of resident tuition status;

(3) have not (i) obtained a baccalaureate degree, or (ii) been enrolled for 12 semesters

or the equivalent, excluding courses taken that qualify as developmental education or below

college-level; and

(4) meet satisfactory academic progress as defined under section
136A.101, subdivision

10.

Sec. 4.

Minnesota Statutes 2025 Supplement, section 135A.1582, subdivision 1, is amended

to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have

the meanings given.

(b) "Parenting student" means a student enrolled at a public college or university who

is the parent or legal guardian of or can claim as a dependent a child under the age of 18.

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(c) "Postsecondary institution" means an institution governed by the Board of Trustees

of the Minnesota State Colleges and Universities or a private postsecondary institution that

offers in-person courses on a campus located in Minnesota and is an eligible institution as

defined in section
136A.103
. Institutions governed by the Board of Regents of the University

of Minnesota are requested to comply with this section.

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(c)
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(d)
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"Pregnancy or related conditions" has the meaning given in Code of Federal

Regulations, title 34, section 106.2.

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(d) "Postsecondary institution" means an institution governed by the Board of Trustees

of the Minnesota State Colleges and Universities or a private postsecondary institution that

offers in-person courses on a campus located in Minnesota and is an eligible institution as

defined in section
136A.103
. Institutions governed by the Board of Regents of the University

of Minnesota are requested to comply with this section.

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(e) "Priority registration" means an opportunity to register for courses before the opening

of general registration for the majority of undergraduate students.

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Sec. 5.

Minnesota Statutes 2025 Supplement, section 135A.1582, subdivision 2, is amended

to read:

Subd. 2.

Rights and protections.

(a) A postsecondary institution may not require and

the University of Minnesota is requested not to require a pregnant or parenting student,

solely because of the student's status as a pregnant or parenting student or due to issues

related to the student's pregnancy or parenting, to:

(1) take a leave of absence or withdraw from the student's degree or certificate program;

(2) limit the student's studies;

(3) participate in an alternative program;

(4) change the student's major, degree, or certificate program; or

(5) refrain from joining or cease participating in any course, activity, or program at the

college or university.

(b) A postsecondary institution shall provide and the University of Minnesota is requested

to provide reasonable modifications to a pregnant student, including modifications that:

(1) would be provided to a student with a temporary medical condition; or

(2) are related to the health and safety of the student and the student's unborn child, such

as allowing the student to maintain a safe distance from substances, areas, and activities

known to be hazardous to pregnant women or unborn children.

(c) A postsecondary institution must and the University of Minnesota is requested to,

for reasons related to a student's pregnancy, childbirth, or any resulting medical status or

condition:

(1) excuse the student's absence;

(2) allow the student to make up missed assignments or assessments;

(3) allow the student additional time to complete assignments in the same manner as the

institution allows for a student with a temporary medical condition; and

(4) provide the student with access to instructional materials and video recordings of

lectures for classes for which the student has an excused absence under this section to the

same extent that instructional materials and video recordings of lectures are made available

to any other student with an excused absence.

(d) A postsecondary institution must and the University of Minnesota is requested to

allow a pregnant or parenting student to:

(1) take a leave of absence; and

(2) if in good academic standing at the time the student takes a leave of absence, return

to the student's degree or certificate program in good academic standing without being

required to reapply for admission.

(e) If a postsecondary institution provides early registration for courses or programs at

the institution for any group of students, the institution must provide and the University of

Minnesota is requested to provide early registration for those courses or programs for

pregnant or parenting students in the same manner.
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Priority registration for parenting students

shall include the following considerations:
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(1) automatically assign eligible pregnant and parenting students a registration window

time that occurs no later than the earliest undergraduate registration period offered;

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(2) ensure that priority registration is granted without a separate petition, discretionary

approval, or case-by-case determination beyond verification of parenting status;

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(3) annual notification provided to all enrolled students describing the rights and

protections afforded to pregnant and parenting students;

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(4) provide notification of the priority registration process to each student who

self-identifies as a pregnant or parenting student; and

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(5) publish information regarding programs, services, and student rights specific to

parenting students on the public postsecondary institution's public website.

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(f) The Board of Trustees of the Minnesota State Colleges and Universities shall adopt

policies and procedures to implement this subdivision. The Board of Regents of the

University of Minnesota is requested to comply with this subdivision.

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Sec. 6.

Minnesota Statutes 2025 Supplement, section 135A.1582, subdivision 3, is amended

to read:

Subd. 3.

Policy on discrimination.

Each postsecondary institution must adopt and the

University of Minnesota is requested to adopt a policy for students on pregnancy and

parenting discrimination. The policy must:

(1) include the contact information of the Title IX coordinator who is the designated

point of contact for a student requesting each protection or modification under this section.

Contact information must include the Title IX coordinator's name, phone number, email,

and office;

(2) be posted in an easily accessible, straightforward format on the
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college or university's
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postsecondary institution's
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website; and

(3) be made available annually to faculty, staff, and employees of the
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college or university
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postsecondary institution
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.

Sec. 7.

Minnesota Statutes 2024, section 136A.053, is amended to read:

136A.053 CONSOLIDATED STUDENT AID REPORTING.

(a) The commissioner of the Office of Higher Education shall report annually beginning

February 15, 2026, to the chairs and ranking minority members of the legislative committees

with jurisdiction over higher education, on the details of programs administered under

sections
136A.091

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to
136A.1276
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,
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136A.121, 136A.1215, 136A.1241, 136A.125, 136A.126,

136A.1274, 136A.1275,
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136A.1465
, and
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136A.231
to
136A.246
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136A.233
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, including the:

(1) total funds appropriated and expended;

(2) total number of students applying for funds;

(3) total number of students receiving funds;

(4) average and total award amounts;

(5) summary demographic data on award recipients;

(6) retention rates of award recipients;

(7) completion rates of award recipients;

(8) average cumulative debt at exit or graduation; and

(9) average time to completion.

(b) Data must be disaggregated by
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aid
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program, institution, aid year, race and ethnicity,

gender,
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income,
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socioeconomic status,
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family type,
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dependency status,
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and any other factors

determined to be relevant by the commissioner
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, as available
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. The commissioner must report

any additional data and outcomes relevant to the evaluation of programs administered under

sections
136A.091
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to
136A.1276
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,
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136A.121, 136A.1215, 136A.1241, 136A.125, 136A.126,

136A.1274, 136A.1275,
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136A.1465
, and
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136A.231
to
136A.246
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136A.233
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as evidenced

by activities funded under each program.

Sec. 8.

Minnesota Statutes 2024, section 136A.091, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

To be eligible for a program stipend, a student shall:

(1) be a resident
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of Minnesota
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student under section 136A.101, subdivision 8
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;

(2) attend an eligible office-approved program;

(3) be in grades 3 through 12, but not have completed high school;

(4) meet income requirements for free or reduced-price school meals; and

(5) be 19 years of age or younger.

Sec. 9.

Minnesota Statutes 2024, section 136A.091, subdivision 9, is amended to read:

Subd. 9.

Report.

Annually, the office shall submit a report
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to the legislative committees

with jurisdiction over higher education finance regarding the program providers, stipend

recipients, and program activities. The report shall include information about the students

served, the organizations providing services, program goals and outcomes, and student

outcomes
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in accordance with section 136A.053
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.

Sec. 10.

Minnesota Statutes 2024, section 136A.121, subdivision 2, is amended to read:

Subd. 2.

Eligibility for grants.

(a) An applicant is eligible to be considered for a grant,

regardless of the applicant's sex, creed, race, color, national origin, or ancestry, under sections

136A.095
to
136A.131
if the office finds that the applicant:

(1) is a resident
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of the state of Minnesota
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student under section 136A.101, subdivision

8
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;

(2) is a graduate of a secondary school or its equivalent, or is 17 years of age or over,

and has met all requirements for admission as a student to an eligible college or technical

college of choice as defined in sections
136A.095
to
136A.131
;

(3) has met the financial need criteria established in Minnesota Rules;

(4) is not in default, as defined by the office, of any federal or state student educational

loan;

(5) is not more than 30 days in arrears in court-ordered child support that is collected or

enforced by the public authority responsible for child support enforcement or, if the applicant

is more than 30 days in arrears in court-ordered child support that is collected or enforced

by the public authority responsible for child support enforcement, but is complying with a

written payment agreement under section
518A.69
or order for arrearages; and

(6) has not been convicted of or pled nolo contendere or guilty to a crime involving

fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,

subtitle B, chapter VI, part 668, subpart C.

(b) A student is entitled to an additional semester or the equivalent of grant eligibility

if the student withdraws from enrollment:

(1) for active military service after December 31, 2002, because the student was ordered

to active military service as defined in section
190.05, subdivision 5b
or 5c;

(2) for a serious health condition, while under the care of a medical professional, that

substantially limits the student's ability to complete the term; or

(3) while providing care that substantially limits the student's ability to complete the

term to the student's spouse, child, or parent who has a serious health condition.

Sec. 11.

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[136A.1212] FRAUD; DENIAL OF FUNDING.

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Applicants or recipients of any student aid or grant program administered under chapter

136A may be denied funding if the applicant or recipient:

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(1) presents information concerning the financial aid or grant application that is false,

fraudulent, misleading, deceptive, or inaccurate in a material respect;

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(2) refuses to allow reasonable inspection or to supply reasonable information after a

written request by the office or school has been received; or

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(3) has been determined by the commissioner or judicially determined to have committed

fraud or a material violation of law involving federal, state, or local government funding.

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Sec. 12.

Minnesota Statutes 2024, section 136A.1215, subdivision 5, is amended to read:

Subd. 5.

Reporting.

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By February 15 of each year, the commissioner of higher education

must submit a report on the details of the program under this section to the legislative

committees with jurisdiction over higher education finance and policy. The report must

include the following information, broken out by postsecondary institution:

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Annually, the

office must submit a report in accordance with section 135A.053.

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(1) the number of students receiving an award;

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(2) the average and total award amounts; and

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(3) summary demographic data on award recipients.

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Sec. 13.

Minnesota Statutes 2024, section 136A.1241, subdivision 8, is amended to read:

Subd. 8.

Report.

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(a)
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Annually,
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the office
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shall prepare an anonymized report to be

submitted annually to the chairperson and minority chairperson of the legislative committees

with jurisdiction over higher education that contains:
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must submit a report in accordance

with section 136A.053.
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(1) the number of students receiving foster grants and the institutions attended; and

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(2) annual retention and graduation data on students receiving foster grants.

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(b) The report required under this subdivision may be combined with other legislatively

required reporting. If submitted as a separate report, the report must be submitted by January

15.

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Sec. 14.

Minnesota Statutes 2024, section 136A.125, subdivision 2, is amended to read:

Subd. 2.

Eligible students.

(a) An applicant is eligible for a child care grant if the

applicant:

(1) is a resident
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of the state of Minnesota
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student under section 136A.101, subdivision

8,
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or the applicant's spouse is a resident of the state of Minnesota;

(2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled

as defined in section
125A.02
, and who is receiving or will receive care on a regular basis

from a licensed or legal, nonlicensed caregiver;

(3) is income eligible as determined by the office's policies and rules, but is not a recipient

of assistance from the Minnesota family investment program;

(4) has not received child care grant funds for a period of ten semesters or the equivalent;

(5) is pursuing a nonsectarian program or course of study that applies to an undergraduate,

graduate, or professional degree, diploma, or certificate;

(6) is enrolled in at least one credit in an undergraduate program or one credit in a

graduate or professional program in an eligible institution; and

(7) is in good academic standing and making satisfactory academic progress.

(b) A student is entitled to an additional semester or equivalent of grant eligibility and

will be considered to be in continuing enrollment status upon return if the student withdraws

from enrollment:

(1) for active military service after December 31, 2002, because the student was ordered

to active military service as defined in section
190.05, subdivision 5b
or 5c;

(2) for a serious health condition, while under the care of a medical professional, that

substantially limits the student's ability to complete the term; or

(3) while providing care that substantially limits the student's ability to complete the

term to the student's spouse, child, or parent who has a serious health condition.

Sec. 15.

Minnesota Statutes 2024, section 136A.1274, subdivision 4, is amended to read:

Subd. 4.

Reporting.

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By February 15 of each year, the commissioner must submit a

report on the details of the program under this section to the legislative committees with

jurisdiction over E-12 and higher education finance and policy. The report must include the

following information:

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Annually, the office must submit a report in accordance with section

136A.053. Additionally, the report must be submitted to the chairs and ranking minority

members of the legislative committees with jurisdiction over E-12 finance and policy.

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(1) the number of eligible applicants and the number of teacher candidates receiving an

award, each broken down by postsecondary institution;

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(2) the total number of awards, the total dollar amount of all awards, and the average

award amount; and

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(3) other summary data identified by the commissioner as outcome indicators.

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Sec. 16.

Minnesota Statutes 2024, section 136A.1275, subdivision 4, is amended to read:

Subd. 4.

Reporting.

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(a) By February 1 of each year, the commissioner must submit a

report to the chairs and ranking minority members of the legislative committees with

jurisdiction over E-12 and higher education finance and policy. The report must include the

following information:

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Annually, the office must submit a report in accordance with section

136A.053. Additionally, the report must include

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(1) the total number of awards, the total dollar amount of all awards, and the average

award amount;

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(2) the number of eligible applicants and the number of student teachers receiving an

award, each broken down by postsecondary institution;

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(3)
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the licensure areas and school districts in which the student teachers taught
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;
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and
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must

be submitted to the chairs and ranking minority members of the legislative committees with

jurisdiction over E-12 finance and policy.
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(4) other summary data identified by the commissioner as outcome indicators, including

how many student teachers awarded a rural teacher grant were employed in a rural school

district after graduation.

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(b) By July 1 of each odd numbered year, the commissioner must update and post on

the office's website a list of licensure shortage areas eligible for a grant under this section.

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Sec. 17.

Minnesota Statutes 2024, section 136A.1465, subdivision 10, is amended to read:

Subd. 10.

Report.

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The commissioner of higher education shall submit a preliminary

report by September 1, 2025, and an annual report beginning February 15, 2026, to the

chairs and ranking minority members of the legislative committees with jurisdiction over

higher education, on the details of the program, including the:

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Annually, the office must

submit a report in accordance with section 136A.053.

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(1) status of the scholarship fund; and

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(2) North Star Promise participation data aggregated for each eligible institution to show

the:

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(i) number of eligible students who received scholarships in the prior academic year;

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(ii) average and total award amounts;

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(iii) summary demographic data on award recipients;

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(iv) total number of students enrolled in eligible institutions in the prior academic year;

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(v) retention rates of participating students; and

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(vi) number of eligible students who graduated with a degree and, for each eligible

student, the number of consecutive semesters and nonconsecutive semesters attended prior

to graduation.

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Sec. 18.

Minnesota Statutes 2024, section 136A.233, subdivision 3, is amended to read:

Subd. 3.

Payments.

Work-study payments shall be made to eligible students by

postsecondary institutions as provided in this subdivision.

(a) Students shall be selected for participation in the program by the postsecondary

institution on the basis of student financial need.

(b)
deleted text begin
In selecting students for participation, priority must be given to students enrolled for

at least 12 credits.
deleted text end
In each academic year, a student may be awarded work-study payments

for one period of nonenrollment or less than half-time enrollment if the student will enroll

on at least a half-time basis during the following academic term.

(c) Students will be paid for hours actually worked and the maximum hourly rate of pay

shall not exceed the maximum hourly rate of pay permitted under the federal college

work-study program.

(d) Minimum pay rates will be determined by an applicable federal or state law.

(e) The office shall annually establish a minimum percentage rate of student compensation

to be paid by an eligible employer.

(f)
deleted text begin
Each postsecondary institution receiving money for state work-study grants shall

make a reasonable effort to place work-study students in employment with eligible employers

outside the institution. However, a public employer other than the institution may not

terminate, lay off, or reduce the working hours of a permanent employee for the purpose

of hiring a work-study student, or replace a permanent employee who is on layoff from the

same or substantially the same job by hiring a work-study student.
deleted text end

deleted text begin

(g) The percent of the institution's work-study allocation provided to graduate students

shall not exceed the percent of graduate student enrollment at the participating institution.

deleted text end

deleted text begin

(h)
deleted text end
An institution may use up to 30 percent of its allocation for student internships with

private, for-profit employers.

Sec. 19.

Minnesota Statutes 2025 Supplement, section 136A.246, subdivision 1a, is

amended to read:

Subd. 1a.

Definitions.

(a) The terms defined in this subdivision apply to this section.

(b) "Competency standard" has the meaning given in section
175.45, subdivision 2
.

(c) "Eligible training" means training provided by an eligible training provider that:

(1) includes training to meet one or more identified competency standards;

(2) is instructor-led for a majority of the training
new text begin
or leads to an accredited certificate,

diploma, or degree issued by a postsecondary institution
new text end
; and

(3) results in the employee receiving an industry-recognized degree, certificate, or

credential.

(d) "Eligible training provider" means an institution:

(1) operated by the Board of Trustees of the Minnesota State Colleges and Universities

or the Board of Regents of the University of Minnesota;

(2) licensed or registered as a postsecondary institution by the office; or

(3) exempt from the provisions of section
136A.822
to
136A.834
or
136A.61
to
136A.71

as approved by the office.

(e) "Industry-recognized degrees, certificates, or credentials" means:

(1) accredited certificates, diplomas, or degrees issued by a postsecondary institution;

(2) registered apprenticeship certifications or certificates;

(3) occupational licenses or registrations;

(4) certifications issued by, or recognized by, industry or professional associations; and

(5) other certifications as approved by the commissioner.

Sec. 20.

Minnesota Statutes 2024, section 136A.62, is amended by adding a subdivision

to read:

new text begin

Subd. 3b.

new text end

new text begin

Institution.

new text end

new text begin

"Institution" means school, as defined in this section.

new text end

Sec. 21.

Minnesota Statutes 2024, section 136A.64, subdivision 1, is amended to read:

Subdivision 1.

Schools to provide information.

As a basis for registration, schools

shall provide the office with such information as the office needs to determine the nature

and activities of the school, including but not limited to the following which shall be

accompanied by an affidavit attesting to its accuracy and truthfulness:

(1) articles of incorporation, constitution, bylaws, or other operating documents;

(2) a duly adopted statement of the school's mission and goals;

(3) evidence of current school or program licenses granted by departments or agencies

of any state;

(4) compliance audits and audited financial statements that meet the requirements of

Code of Federal Regulations, title 34, section 668.23; United States Code, title 20, chapter

28, section 1094; Code of Federal Regulations, title 2, subpart A, part 200, subpart F, under

200.501 and 200.503; and United States Code, title 31, chapter 75
new text begin
, which shall be submitted

to the office on the same schedule stated under section 136A.675, subdivision 1, paragraph

(a)
new text end
;

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

(6) the current school catalog and, if not contained in the catalog:

(i) the members of the board of trustees or directors, if any;

(ii) the current institutional officers;

(iii) current full-time and part-time faculty with degrees held or applicable experience;

(iv) a description of all school facilities;

(v) a description of all current course offerings;

(vi) all requirements for satisfactory completion of courses, programs, and degrees;

(vii) the school's policy about freedom or limitation of expression and inquiry;

(viii) a current schedule of fees, charges for tuition, required supplies, student activities,

housing, and all other standard charges;

(ix) the school's policy about refunds and adjustments;

(x) the school's policy about granting credit for prior education, training, and experience;

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

and

(xii) the school's disclosure to students on the student complaint process under section

136A.672
new text begin
; and
new text end

new text begin

(7) enrollment data by academic term or calendar period following the submission

schedules in section 136A.675, subdivision 1, paragraph (b)
new text end
.

Sec. 22.

Minnesota Statutes 2024, section 136A.65, subdivision 8, is amended to read:

Subd. 8.

Disapproval of registration; appeal.

(a) By giving written notice and reasons

to the school, the office may:

(1) revoke, suspend, or refuse to renew registration;

(2) refuse approval of a school's degree; and

(3) refuse approval of the use of a regulated term in its name.

(b) Reasons for revocation or suspension of registration or approval may be for one or

more of the following reasons:

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

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

(3) presenting information about the school which is false, fraudulent, misleading,

deceptive, or inaccurate in a material respect to students or prospective students;

(4) refusing to allow reasonable inspection or to supply reasonable information after a

written request by the office has been received;

(5) failing to have enrollment within the last two years at the school;

(6) failing to have any enrollment within two years of a program's approval, except for

programs that require extensive approval processes by the United States Department of

Education, or the program's institutional or programmatic accreditor; or

(7) having been
deleted text begin
administratively
deleted text end
determined by the commissioner or judicially determined

to have committed fraud or any other material violation of law involving federal, state, or

local government funds.

(c) Any order refusing, revoking, or suspending a school's registration, approval of a

school's degree, or use of a regulated term in the school's name is appealable in accordance

with chapter 14. The request must be in writing and made to the office within 30 days of

the date the school is notified of the action of the office. If a school has been operating and

its registration has been revoked, suspended, or refused by the office, the order is not effective

until the final determination of the appeal, unless immediate effect is ordered by the court.

Sec. 23.

Minnesota Statutes 2024, section 136A.653, subdivision 1b, is amended to read:

Subd. 1b.

Tribal colleges.

A Tribal college is exempted from the provisions of sections

136A.61
to
136A.71
. A Tribal college that is exempt may voluntarily waive its
deleted text begin
exception
deleted text end
new text begin

exemption
new text end
by registering under section
136A.63
. Upon registration, the Tribal college is

subject to all applicable requirements of sections
136A.61
to
136A.71
.

Sec. 24.

Minnesota Statutes 2024, section 136A.653, subdivision 3a, is amended to read:

Subd. 3a.

Tuition-free educational courses.

A
deleted text begin
school
deleted text end
new text begin
course or program
new text end
, including a
deleted text begin

school
deleted text end
new text begin
course or program
new text end
using an online platform service, offering training, courses, or

programs is exempt from sections
136A.61
to
136A.71
, to the extent tuition, fees, and any

other charges for a student to participate do not exceed two percent of the most recent

average undergraduate tuition and required fees as of January 1 of the current year charged

for full-time students at all degree-granting institutions as published annually by the United

States Department of Education as of January 1 of each year. To qualify for an exemption,

a school or online platform service must prominently display a notice comparable to the

following: "IMPORTANT: Each educational institution makes its own decision regarding

whether to accept completed coursework for credit. Check with your university or college."

Sec. 25.

Minnesota Statutes 2024, section 136A.672, subdivision 5, is amended to read:

Subd. 5.

Appeals.

Any order requiring remedial action by the school or assigning a

penalty under section
136A.705
is appealable in accordance with chapter 14. The request

for an appeal must be made in writing to the office within 30 days of the date the school is

notified of the action of the office. The court shall award costs and reasonable attorney fees

in a contested chapter 14 hearing to the office if
deleted text begin
: (1)
deleted text end
the office substantially prevails on the

merits in an action brought under this section
deleted text begin
; and (2) the school has a net income from

student tuition, fees, and other required institutional charges collected from the last fiscal

year of $1,000,000 or greater
deleted text end
.

Sec. 26.

Minnesota Statutes 2024, section 136A.675, subdivision 1, is amended to read:

Subdivision 1.

Standard development and usage.

(a) To screen and detect whether an

institution may not be financially or administratively responsible, the office shall
deleted text begin
develop
deleted text end
new text begin

use
new text end
financial and nonfinancial indicators. The
deleted text begin
development of
deleted text end
financial and nonfinancial

indicators shall use industry standards as guidance.

(b) Annually, the office must provide a copy of the financial and nonfinancial indicators

to each registered institution and post a list of reviewed indicators on the office website.

(c) The office shall use regularly reported data submitted to the federal government or

other regulatory or accreditation agencies wherever possible.

(d) The office must use the indicators in this subdivision to identify institutions at

potential risk of being unable to meet the standards established under sections
136A.646
;

136A.64, subdivision 3
;
136A.65, subdivisions 1a
and 4, paragraph (a), clauses (1), (2), (3),

and (7); and
136A.685
and thus unlikely to meet its financial obligations or complete its

academic terms for the next 18 months.

Sec. 27.

Minnesota Statutes 2024, section 136A.675, is amended by adding a subdivision

to read:

new text begin

Subd. 1a.

new text end

new text begin

Institutional reporting schedules for audits and enrollment data.

new text end

new text begin

(a) An

institution must submit to the office the required audit reports under section 136A.64,

subdivision 1, clause (4), by the earlier of 30 days after the issuance date of an audit or nine

months after the last day of the institution's fiscal year.

new text end

new text begin

(b) An institution must submit to the office the enrollment data required under section

136A.64, subdivision 1, clause (7), using one of the two following schedules:

new text end

new text begin

(1) a school with limited program start dates within its academic year shall provide the

office with a copy of the school's internal enrollment report for each academic term as soon

as it is released internally. The school may provide the report with no additional data or

required calculations; or

new text end

new text begin

(2) a school with multiple or rolling program start dates must provide enrollment data

to the office at least four times per year. Each school must determine four reporting dates

per year that would result in the most useful data being provided to the office and must

provide the office with the school's proposed enrollment reporting schedule.

new text end

Sec. 28.

Minnesota Statutes 2025 Supplement, section 136A.69, subdivision 1, is amended

to read:

Subdivision 1.

Registration fees.

(a) The office shall collect reasonable registration fees

that are sufficient to recover, but do not exceed, its costs of administering the registration

program. The office shall charge the fees listed in paragraphs (b) to (d) for new registrations.

(b) A new school must pay registration fees based on the institution's total full-time

equivalent enrollment in the following amounts:

(1) $5,000 for institutions with 2,500 or fewer full-time equivalent enrollment;

(2) $7,500 for institutions with 2,501 to 5,000 full-time equivalent enrollment;

(3) $10,000 for institutions with 5,001 to 7,500 full-time equivalent enrollment;

(4) $15,000 for institutions with 7,501 to 10,000 full-time equivalent enrollment; and

(5) $20,000 for institutions with 10,001 or greater full-time equivalent enrollment, and

for institutions with no data on the previous year's full-time equivalent enrollment.

Full-time equivalent enrollment is established using the previous year's full-time equivalent

enrollment as established in the United States Department of Education Integrated

Postsecondary Education Data System.
new text begin
If enrollment cannot be established using the United

States Department of Education Integrated Postsecondary Education Data System, the office

may establish an institution's full-time equivalent enrollment through verification of its

enrollment data submitted in accordance with section 136A.64, subdivision 1, clause (7).
new text end

(c) A new school must pay registration fees in an amount equal to the fee under paragraph

(b), plus fees for each nondegree program or degree as follows:

nondegree program

$250

degree program

$750

(d)
deleted text begin
In addition to the fees under paragraphs (b) and (c), a fee of $600 must be paid for

an initial application that: (1) has had four revisions, corrections, amendment requests, or

application reminders for the same application or registration requirement; or (2) cumulatively

has had six revisions, corrections, amendment requests, or application reminders for the

same license application and the school seeks to continue with the application process with

additional application submissions. If this fee is paid, the school may submit two final

application submissions for review prior to application denial under section
136A.65,

subdivision 8
. This provision excludes from its scope nonrepetitive questions or clarifications

initiated by the school before the submission of the application, initial interpretation questions

or inquiries from the office regarding a completed application, and initial requests from the

office for verification or validation of a completed application.
deleted text end

deleted text begin

(e)
deleted text end
The annual renewal registration fee is based on an institution's total full-time

equivalent enrollment in the following amounts:

(1) $1,500 for institutions with 2,500 or fewer full-time equivalent enrollment;

(2) $3,000 for institutions with 2,501 to 5,000 full-time equivalent enrollment;

(3) $5,000 for institutions with 5,001 to 10,000 full-time equivalent enrollment; and

(4) $7,500 for institutions with 10,001 or greater full-time equivalent enrollment, and

for institutions with no data on the previous year's full-time equivalent enrollment.

Full-time equivalent enrollment is established using the previous year's full-time equivalent

enrollment as established in the United States Department of Education Integrated

Postsecondary Education Data System.
new text begin
If enrollment cannot be established using the United

States Department of Education Integrated Postsecondary Education Data System, the office

may establish an institution's full-time equivalent enrollment through verification of its

enrollment data submitted in accordance with section 136A.64, subdivision 1, clause (7).
new text end

deleted text begin

(f) In addition to the fee under paragraph (e), a fee of $600 must be paid for a renewal

application that: (1) has had four revisions, corrections, amendment requests, or application

reminders for the same application or registration requirement; or (2) cumulatively has had

six revisions, corrections, amendment requests, or application reminders for the same license

application and the school seeks to continue with the application process with additional

application submissions. If this fee is paid, the school may submit two final application

submissions for review prior to application denial under section
136A.65, subdivision 8
.

This provision excludes from its scope nonrepetitive questions or clarifications initiated by

the school before the submission of the application, initial interpretation questions or inquiries

from the office regarding a completed application, and initial requests from the office for

verification or validation of a completed application.

deleted text end

Sec. 29.

Minnesota Statutes 2025 Supplement, section 136A.82, subdivision 1, is amended

to read:

Subdivision 1.

Policy.

The legislature has found and hereby declares that the availability

of legitimate
deleted text begin
vocational
deleted text end
programs offered by responsible nonprofit and for-profit private

career schools are in the best interests of the people of this state. The legislature has found

and declares that the state can provide assistance and protection for persons choosing
deleted text begin

vocational
deleted text end
programs by establishing policies and procedures to ensure the authenticity and

legitimacy of
deleted text begin
vocational
deleted text end
programs offered by nonprofit and for-profit private career schools.

The legislature has found and declares that this same policy applies to any nonprofit and

for-profit private career schools located in another state or country that offers or makes

available to a Minnesota resident any
deleted text begin
vocational
deleted text end
program which does not require leaving

the state for its completion.

Sec. 30.

Minnesota Statutes 2025 Supplement, section 136A.821, subdivision 5, is amended

to read:

Subd. 5.

Private career school.

"Private career school" means a person who maintains

a physical presence for any program at less than an associate degree level.
new text begin
Except for those

required to obtain a license exclusively to participate in state financial aid or be listed on

the eligible training provider list, access WIOA funding, or receive the dual training grant,
new text end

private career school does not extend to:

(1) public postsecondary institutions with a physical presence in Minnesota;

(2) postsecondary institutions registered under sections
136A.61
to
136A.71
;

(3) postsecondary institutions exempt from registration under section
136A.653
,

subdivisions 1b, 2, 3, and 3a
deleted text begin
;
136A.657
;
deleted text end
new text begin
,
new text end
or
136A.658
due to the nature of the institution's

programs;

(4)
deleted text begin
schools
deleted text end
new text begin
persons, programs, or courses
new text end
exclusively engaged in training physically or

mentally disabled persons;

(5)
new text begin
persons, programs, or
new text end
courses taught to students in an apprenticeship program

registered by the United States Department of Labor or Minnesota Department of Labor

and taught by or required by a trade union in which students are not responsible for tuition,

fees, or any other charges, regardless of payment or reimbursement method;

(6)
new text begin
persons,
new text end
programs
new text begin
, or courses
new text end
contracted by persons or government agencies for the

training of their own employees for which no fee is charged to the employee, regardless of

whether that fee is reimbursed by the employer or a third party after the employee

successfully completes the training
deleted text begin
, except for institutions or programs required to obtain

a limited license exclusively to receive the dual training grant
deleted text end
;

(7)
deleted text begin
schools
deleted text end
new text begin
persons, programs, or courses
new text end
with no physical presence in Minnesota engaged

exclusively in offering distance programs that are located in and approved by other states

or jurisdictions if the distance education program does not include internships, externships,

field placements, or clinical placements for residents of Minnesota;

(8)
deleted text begin
schools
deleted text end
new text begin
persons, programs, or courses
new text end
licensed or approved by other state boards or

agencies authorized under Minnesota law to issue licenses for institutions or programs
deleted text begin
,

except for institutions or programs required to be licensed exclusively to participate in state

financial aid or be listed on the eligible training provider list, access WIOA funding, or

receive the dual training grant
deleted text end
;

(9)
deleted text begin
review classes, courses, or
deleted text end
new text begin
persons,
new text end
programs
new text begin
, or courses
new text end
intended to prepare students

to sit for undergraduate, graduate, postgraduate, or occupational licensing, certification, or

entrance examinations;

(10)
deleted text begin
classes, courses, or
deleted text end
new text begin
persons,
new text end
programs
new text begin
, or courses
new text end
conducted by a bona fide trade,

professional, or fraternal organization, solely for that organization's membership and not

available to the public. In making the determination that the organization is bona fide, the

office may request the school provide three certified letters from persons that qualify as

evaluators under section
136A.828, subdivision 3
, paragraph (l), that the organization is

recognized in Minnesota;

(11)
new text begin
persons,
new text end
programs
deleted text begin
in the fine arts provided by organizations
deleted text end
new text begin
, or courses that are
new text end

exempt from taxation under section
290.05
and registered with the attorney general under

chapter 309
deleted text begin
. For 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, vocational or career

advancement, or employment
deleted text end
; or

(12)
deleted text begin
classes, courses, or
deleted text end
new text begin
persons,
new text end
programs
new text begin
, or courses
new text end
intended to fulfill the continuing

education requirements for a bona fide licensure or certification in a profession that have

been approved by a legislatively or judicially established board or agency responsible for

regulating the practice of the profession or by an industry-specific certification entity and

that are offered exclusively to individuals with the professional licensure or certification.

Sec. 31.

Minnesota Statutes 2024, section 136A.821, subdivision 13, is amended to read:

Subd. 13.

Compliance audit.

"Compliance audit" means an audit of a
new text begin
private career
new text end

school's
deleted text begin
compliance with federal requirements related to its participation in federal Title IV

student aid programs or other federal grant programs performed under either Uniform Grant

Guidance, including predecessor Federal Circular A-133, or the United States Department

of Education's audit guide, Audits of Federal Student Financial Assistance Programs at

Participating Institutions and Institution Servicers
deleted text end
new text begin
administration of federal money conducted

by a certified public accountant or federal auditor to determine if the school is adhering to

applicable laws, regulations, and other grant conditions as required by Code of Federal

Regulations, title 2, subtitle A, chapter II, part 200
new text end
.

Sec. 32.

Minnesota Statutes 2024, section 136A.821, subdivision 16, is amended to read:

Subd. 16.

deleted text begin
Audited
deleted text end
Financial statements
new text begin
audit report
new text end
.

"
deleted text begin
Audited
deleted text end
Financial statements
new text begin

audit report
new text end
" means the
deleted text begin
financial statements of an entity or higher-level entity that have

been examined by a certified public accountant or an equivalent government agency for

public entities that include (1) an auditor's report, a statement of financial position, an income

statement, a statement of cash flows, and notes to the financial statements or (2) the required

equivalents for public entities as determined by the Financial Accounting Standards Board,

the Governmental Accounting Standards Board, or the Securities and Exchange Commission
deleted text end
new text begin

result of a service provided by a certified public accountant or federal auditor that conducts

a comprehensive and independent examination of the entity's financial statements as defined

in Code of Federal Regulations, title 34, section 668.23(d). If an entity's own financial

statements audit report is subsequently consolidated into a higher-level entity's financial

statements audit report, financial statements audit report can refer to both the entity's own

report and the higher-level entity's consolidated report in accordance with Code of Federal

Regulations, section 668.23(d)(2)
new text end
.

Sec. 33.

Minnesota Statutes 2024, section 136A.821, subdivision 17, is amended to read:

Subd. 17.

deleted text begin
Review-level engagement
deleted text end
new text begin
Compilation report
new text end
.

deleted text begin
"Review-level engagement"

means a service performed by a certified public accountant that provides limited assurance

that there are no material modifications that need to be made to an entity's financial statements

in order for them to conform to generally accepted accounting principles. Review-level

engagement provides fewer assurances than those reported under audited financial statements
deleted text end
new text begin

"Compilation report" means the result of an accounting service provided by a certified public

accountant to organize financial information provided by a client into professionally

formatted financial statements. A compilation report provides no assurances about the

financial statements, unlike those provided in a financial statements audit report
new text end
.

Sec. 34.

Minnesota Statutes 2025 Supplement, section 136A.821, subdivision 21, is

amended to read:

Subd. 21.

deleted text begin
Vocational
deleted text end
new text begin
Institution or school
new text end
.

deleted text begin
"Vocational" means education or training

for skills used in the labor market
deleted text end
new text begin
"Institution" or "school" means a private career school

or distance education private career school, as defined in this section
new text end
.

Sec. 35.

Minnesota Statutes 2024, section 136A.822, subdivision 4, is amended to read:

Subd. 4.

Application.

Application for a license shall be on forms prepared and furnished

by the office, and shall include the following and other information as the office may require:

(1) the title or name of the private career school, ownership and controlling officers,

members, managing employees, and director;

(2) the specific programs which will be offered
deleted text begin
and the specific purposes of the

instruction
deleted text end
;

(3) the place or places where the instruction will be given;

(4) a listing of the equipment available for instruction in each program;

(5) the maximum enrollment to be accommodated with equipment available in each

specified program;

(6) the qualifications of instructors and supervisors in each specified program;

(7) financial documents related to the entity's and higher-level entity's most recently

completed fiscal year
deleted text begin
:
deleted text end
new text begin
, including a federal income tax return and, in accordance with the

table below, one or more of the following: a financial statements audit report, compliance

audit report, or compilation report. An applicant with financial statements that are

consolidated into a higher-level entity's financial statements must include the consolidated

financials of the higher-level entity with the documents listed in each row of the table except

for the final row. If not stated in the financial statements audit report, compliance audit

report, or compilation report, the entity must include a statement providing the total gross

tuition and fee revenues associated with the programs and the total amount of institutional

discounts and aid provided to students in the programs.
new text end

deleted text begin

(i) annual gross revenues from all sources;

deleted text end

deleted text begin

(ii) financial statements subjected to a review-level engagement or, if requested by the

office, audited financial statements;

deleted text end

deleted text begin

(iii) a school's most recent compliance audit, if applicable; and

deleted text end

deleted text begin

(iv) a current balance sheet, income statement, and adequate supporting documentation,

prepared and certified by an independent public accountant or CPA;

deleted text end

new text begin

An entity or higher-level entity subject to fluctuating levels of total gross revenues must

continue to submit the required financial documents according to the requirements under

items (i) to (vi) even if the most current fiscal year's total gross revenues move the entity

or higher-level entity into a different category. If an entity or higher-level entity continues

to experience a change in total gross revenues for two consecutive fiscal years, the office

must notify the entity that the entity will be subject to the documentation requirements under

items (i) to (vi) for the next annual licensing application cycle. If, for the most recently

completed fiscal year, the applicant or renewal applicant:

new text end

new text begin

(i) is required by federal or other external entities to have both a financial statements

audit and a compliance audit, the applicant must submit the financial statements audit report

and the compliance audit report, which may be combined in one document;

new text end

new text begin

(ii) is required by federal or other external entities to have a financial statements audit,

but not a compliance audit, the applicant must submit the financial statements audit report;

new text end

new text begin

(iii) is not required to have a financial statements audit, but elects to have one, the

applicant must submit the financial statements audit report;

new text end

new text begin

(iv) does not fall into a prior category but had gross annual revenues from all sources

in the most recently completed fiscal year of $5,000,000 or more and the office requires the

applicant to have a financial statements audit, the applicant must submit the financial

statement audit report. If the applicant is a nonprofit entity, the applicant must also include

the completed Federal Form 990 tax return for the most recently completed fiscal year;

new text end

new text begin

(v) does not fall into a prior category but had gross annual revenues from all sources in

the most recently completed fiscal year of $250,000 or more but less than $5,000,000 and

the office requires the applicant to have a compilation engagement, the applicant must

submit the compilation report, including footnotes for a debt repayment schedule and other

material items. If the applicant is a nonprofit entity, the applicant must also include the

completed Federal Form 990 tax return for the most recently completed fiscal year; or

new text end

new text begin

(vi) does not fall into a prior category but had gross annual revenues from all sources

in the most recently completed fiscal year of less than $250,000, the applicant must submit

(A) depending on the ownership or corporate organization, the applicant's federal income

tax return; and (B) if the net income flows through to the owners' personal federal tax returns,

a copy of each owner's personal federal tax return. In addition to the tax return information,

an applicant must provide a balance sheet dated as of the last day of the most recently ended

fiscal year;

new text end

(8) copies of all media advertising and promotional literature and brochures or electronic

display currently used or reasonably expected to be used by the private career school;
new text begin
and
new text end

(9) copies of all Minnesota enrollment agreement forms and contract forms and all

enrollment agreement forms and contract forms used in Minnesota
deleted text begin
; and
deleted text end
new text begin
.
new text end

deleted text begin

(10) gross income earned in the preceding year from student tuition, fees, and other

required institutional charges.

deleted text end

Sec. 36.

Minnesota Statutes 2025 Supplement, section 136A.822, subdivision 6, is amended

to read:

Subd. 6.

Bond.

(a) No license shall be issued to any private career school with a physical

presence within the state of Minnesota for any program, unless the applicant files with the

office a continuous corporate surety bond 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.

(b) The amount of the surety bond shall be ten percent of the preceding year's net revenue

from student tuition, fees, and other required institutional charges collected,
deleted text begin
but in no event

less than $10,000,
deleted text end
except that a private career school
deleted text begin
may
deleted text end
new text begin
must
new text end
deposit a greater amount at
deleted text begin

its own
deleted text end
new text begin
the office's
new text end
discretion. A private career 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. A private career school that operates at two or more locations

may combine net revenue from student tuition, fees, and other required institutional charges

collected for all locations for the purpose of determining the annual surety bond requirement.

The net revenue from tuition and fees used to determine the amount of the surety bond

required for a private career school having a license for the sole purpose of recruiting students

in Minnesota shall be only that paid to the private career school by the students recruited

from Minnesota.
new text begin
In the case of an entity applying for an initial license where no history of

revenues from student tuition, fees, or other required institutional charges, the amount of

the bond must be ten percent of the total amount of tuition, fees, and other required

institutional charges anticipated in the entity's first year of operation, based on a calculation

of total student tuition, fees, and other required institutional charges multiplied by the

maximum student enrollment in one academic year.
new text end

(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 deposited by the private career school under paragraph (b). The

surety of any bond may cancel it upon giving 60 days' notice in writing to the office and

shall be relieved of liability for any breach of condition occurring after the effective date

of cancellation.

(d) In lieu of bond, the applicant may deposit with the commissioner of management

and budget a sum equal to the amount of the required surety bond in cash, an irrevocable

letter of credit issued by a financial institution equal to the amount of the required surety

bond, or securities as may be legally purchased by savings banks or for trust funds in an

aggregate market value equal to the amount of the required surety bond.

(e) Failure of a private career 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. 37.

Minnesota Statutes 2025 Supplement, section 136A.822, subdivision 8, is amended

to read:

Subd. 8.

Minimum standards.

A license shall be issued if the office first determines:

(1) that the applicant has a sound financial condition with sufficient resources available

to:

(i) meet the private career school's financial obligations;

(ii) refund all tuition and other charges, within 60 days, in the event of dissolution of

the private career school or in the event of any justifiable claims for refund against the

private career school by the student body;

(iii) provide adequate service to its students and prospective students; and

(iv) maintain and support the private career school;

(2) that the applicant has satisfactory facilities with sufficient tools and equipment and

the necessary number of work stations to prepare adequately the students currently enrolled,

and those proposed to be enrolled;

(3) that the applicant employs a sufficient number of qualified teaching personnel to

provide the educational programs contemplated;

(4) that the private career school has an organizational framework with administrative

and instructional personnel to provide the programs and services it intends to offer;

(5) that the quality
deleted text begin
and content
deleted text end
of each occupational course or program of study provides

education and adequate preparation to enrolled students for entry level positions in the

occupation for which prepared
new text begin
, based on minimum standards for employment in the field,

learning outcomes, assessment mechanisms, and clear structure of the curriculum
new text end
;

(6) that the premises and conditions where the students work and study and the student

living quarters which are owned, maintained, recommended, or approved by the applicant

are sanitary, healthful, and safe
deleted text begin
, as evidenced by certificate of occupancy issued by the

municipality or county where the private career school is physically situated, a fire inspection

by the local or state fire marshal, or another verification deemed acceptable by the office
deleted text end
;

(7) that the contract or enrollment agreement used by the private career school complies

with the provisions in section
136A.826
;

(8) that contracts and agreements do not contain a wage assignment provision or a

confession of judgment clause;

(9) that there has been no adjudication of fraud or misrepresentation in any criminal,

civil, or administrative proceeding in any jurisdiction against the private career school or

its owner, officers, agents, or sponsoring organization;

(10) that the private career school or its owners, officers, agents, or sponsoring

organization has not had a license revoked under section
136A.829
or its equivalent in other

states or has closed the institution prior to all students, enrolled at the time of the closure,

completing their program within two years of the effective date of the revocation; and

(11) that the school includes a joint and several liability provision for torts and compliance

with the requirements of sections
136A.82
to
136A.834
in any contract effective after July

1, 2026, with any individual, entity, or postsecondary school located in another state for the

purpose of providing educational or training programs or awarding postsecondary credits

to Minnesota residents that may be applied to a program.

Sec. 38.

Minnesota Statutes 2024, section 136A.822, subdivision 10, is amended to read:

Subd. 10.

Catalog, brochure, or electronic display.

Before a license is issued to a

private career school, the private career school shall furnish to the office a catalog, brochure,

or electronic display including
deleted text begin
:
deleted text end
new text begin
all required information to students under section 136A.826.
new text end

deleted text begin

(1) identifying data, such as volume number and date of publication;

deleted text end

deleted text begin

(2) name and address of the private career school and its governing body and officials;

deleted text end

deleted text begin

(3) a calendar of the private career school showing legal holidays, beginning and ending

dates of each course quarter, term, or semester, and other important dates;

deleted text end

deleted text begin

(4) the private career school policy and regulations on enrollment including dates and

specific entrance requirements for each program;

deleted text end

deleted text begin

(5) the private career school policy and regulations about leave, absences, class cuts,

make-up work, tardiness, and interruptions for unsatisfactory attendance;

deleted text end

deleted text begin

(6) the private career school policy and regulations about standards of progress for the

student including the grading system of the private career school, the minimum grades

considered satisfactory, conditions for interruption for unsatisfactory grades or progress, a

description of any probationary period allowed by the private career school, and conditions

of reentrance for those dismissed for unsatisfactory progress;

deleted text end

deleted text begin

(7) the private career school policy and regulations about student conduct and conditions

for dismissal for unsatisfactory conduct;

deleted text end

deleted text begin

(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student

activities, laboratory fees, service charges, rentals, deposits, and all other charges;

deleted text end

deleted text begin

(9) the private career school policy and regulations, including an explanation of section

136A.827
, about refunding tuition, fees, and other charges if the student does not enter the

program, withdraws from the program, or the program is discontinued;

deleted text end

deleted text begin

(10) a description of the available facilities and equipment;

deleted text end

deleted text begin

(11) a course outline syllabus 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;

deleted text end

deleted text begin

(12) the private career school policy and regulations about granting credit for previous

education and preparation;

deleted text end

deleted text begin

(13) a notice to students relating to the transferability of any credits earned at the private

career school to other institutions;

deleted text end

deleted text begin

(14) a procedure for investigating and resolving student complaints;

deleted text end

deleted text begin

(15) the name and address of the office; and

deleted text end

deleted text begin

(16) the student complaint process and rights under section
136A.8295
.

deleted text end

deleted text begin

A private career school that is exclusively a distance education school is exempt from

clauses (3) and (5).

deleted text end

Sec. 39.

Minnesota Statutes 2024, section 136A.822, subdivision 12, is amended to read:

Subd. 12.

Permanent student records.

(a) A private career school
new text begin
or a distance education

private career school
new text end
licensed under sections
136A.82
to
136A.834
and located in Minnesota

shall maintain a
deleted text begin
permanent
deleted text end
student record for each student for 50 years from the last date

of the student's attendance.
deleted text begin
A private career school licensed under this chapter and offering

distance instruction to a student located in Minnesota shall maintain a permanent record for

each Minnesota student for 50 years from the last date of the student's attendance
deleted text end
new text begin
The private

career school or distance education private career school may choose to reduce the amount

of time the school maintains a student record to no less than 20 years if the entity sends the

permanent student record to the office to hold for the remainder of the duration the student

records are required to be maintained
new text end
. Records include school transcripts, documents, and

files containing student data about academic credits earned, courses completed, grades

awarded, degrees awarded, and periods of attendance.

(b) A private career school
new text begin
or distance education private career school
new text end
licensed under

sections
136A.82
to
136A.834
and located in Minnesota shall maintain a permanent student

record required for professional licensure in Minnesota for each student for ten years from

the last date of the student's attendance or the number of years required by an institutional

or programmatic accreditor, whichever is greater.
deleted text begin
A private career school licensed under

this chapter and offering distance instruction to a student located in Minnesota shall maintain

records required for professional licensure in Minnesota that are not included in paragraph

(a) for each Minnesota student for ten years from the last date of the student's attendance

or the number of years required by an institutional or programmatic accreditor, whichever

is greater.
deleted text end

new text begin

(c)
new text end
To preserve permanent student records, a private career school shall submit a plan

that meets the following requirements:

(1)
deleted text begin
at least one copy of the records must be held in a secure, fireproof depository;
deleted text end

deleted text begin

(2)
deleted text end
an appropriate official must be designated to provide a student with copies of records

or a transcript upon request;
new text begin
and
new text end

deleted text begin

(3) an alternative method, approved by the office, of complying with clauses (1) and (2)

must be established if the private career school ceases to exist; and

deleted text end

deleted text begin

(4)
deleted text end
new text begin
(2)
new text end
a continuous surety bond or irrevocable letter of credit issued by a financial

institution must be filed with the office in an amount not to exceed $20,000 if the private

career school has no binding agreement approved by the office, for preserving student

records. The bond or irrevocable letter of credit shall run to the state of Minnesota. In the

event of a school closure, the surety bond or irrevocable letter of credit must be used by the

office to retrieve, recover, maintain, digitize, and destroy academic records.

Sec. 40.

Minnesota Statutes 2025 Supplement, section 136A.822, subdivision 13, is

amended to read:

Subd. 13.

Limited license.

(a) Unless otherwise exempt under sections
136A.82
to

136A.834
:

(1) a private career school licensed by another state agency or board must be required

to obtain a limited license to participate in state financial aid; and

(2) a private career school exclusively seeking to be listed on the eligible training provider

list, access WIOA funding, or receive the dual training grant shall be required to obtain a

limited license.

(b) A private career school seeking a limited license under this subdivision shall be

required to satisfy
deleted text begin
only
deleted text end
the requirements of subdivisions 4, clauses (1), (2),
new text begin
and
new text end
(3)
deleted text begin
, (7), (8),

(9), and (10)
deleted text end
; 5; 8, clauses (1),
deleted text begin
(4), (7), (8),
deleted text end
(9), and (10);
deleted text begin
9; 10; 11;
deleted text end
and 12
new text begin
. If requested by

the office, a private career school seeking a limited license under this subdivision must

satisfy the requirements of subdivisions 4, clauses (7), (8), (9), and (10); 8, clauses (4), (7),

and (8); 9; 10; and 11
new text end
. If a
new text begin
private career
new text end
school is licensed to participate in state financial

aid under this chapter, the
new text begin
private career
new text end
school must follow the refund policy in section

136A.827
, even if that section conflicts with the refund policy of the licensing agency or

board. A distance education private career school located in another state, or a
new text begin
distance

education private career
new text end
school licensed to recruit Minnesota residents for attendance at a
new text begin

distance education private career
new text end
school outside of this state, or a
new text begin
distance education private

career
new text end
school licensed by another state agency as its primary licensing body, may continue

to use the
new text begin
distance education private career
new text end
school's name as permitted by its home state or

its primary licensing body.

Sec. 41.

Minnesota Statutes 2024, section 136A.822, is amended by adding a subdivision

to read:

new text begin

Subd. 14.

new text end

new text begin

Data privacy.

new text end

new text begin

(a) Financial records submitted by private career schools are

nonpublic data, as defined in section 13.02, subdivision 9.

new text end

new text begin

(b) Accreditation records and reports submitted by private career schools are nonpublic

data, as defined in section 13.02, subdivision 9.

new text end

new text begin

(c) The office may disclose data that is classified as not public data under this subdivision

for the purpose of defending the office's decision to approve or not approve a program or

institution, or take any other action under sections 136A.82 to 136A.833, in connection with

a legal or administrative proceeding, or pursuant to a subpoena or judicial warrant.

new text end

Sec. 42.

Minnesota Statutes 2024, section 136A.823, subdivision 1, is amended to read:

Subdivision 1.

Application.

new text begin
(a)
new text end
Application for renewal of a license must be made at

least 60 days
new text begin
, other than the exception in paragraph (b),
new text end
before expiration of the current

license on a form provided by the office. A renewal application shall be accompanied by a

nonrefundable fee as provided in section
136A.824
that is sufficient to recover, but does

not exceed, the administrative costs of the office.

new text begin

(b) The financial documents listed in section 136A.822, subdivision 4, clause (7), required

to be submitted to the office as part of a renewal application, shall be submitted according

to the following schedule:

new text end

new text begin

(1) the financial statements audit reports, compliance audit reports, and compilation

reports, by the earlier of 30 days after the issuance date of each report or nine months after

the last day of the entity's or higher-level entity's fiscal year; or

new text end

new text begin

(2) for federal tax returns and stand-alone balance sheets, by the earlier of 30 days after

the federal tax return is completed or one week following the last day of a federal filing

extension period that is usually six months in length.

new text end

Sec. 43.

Minnesota Statutes 2024, section 136A.823, subdivision 3, is amended to read:

Subd. 3.

Change of ownership.

Within 30 days of a change of ownership, a school must

submit a registration renewal application, the information and materials for an initial

registration under section
136A.822, subdivision 4
, and the applicable registration fees for

a new institution under section
136A.824, subdivision 1
. For purposes of this subdivision,

"change of ownership" means: a merger or consolidation with a
deleted text begin
corporation
deleted text end
new text begin
separate entity

or higher-level entity
new text end
; a sale, lease, exchange, or other disposition of all or substantially all

of the assets of a school; the transfer of a controlling interest of at least 51 percent of the

school's stock; entering into receivership; or a change in the nonprofit or for-profit status

of a school.

Sec. 44.

Minnesota Statutes 2025 Supplement, section 136A.824, subdivision 1, is amended

to read:

Subdivision 1.

Initial licensure fee.

deleted text begin
(a)
deleted text end
The office processing fee for an initial licensure

application is:

(1) $3,730 for a private career school that will offer no more than one program during

its first year of operation;

(2) $1,500 for a private career school licensed by another state agency and seeking a

limited license exclusively in order to participate in state financial aid; and

(3) $3,730, plus $500 for each additional program offered by the private career school,

for a private career school during its first year of licensed operation.

deleted text begin

(b) In addition to the fee under paragraph (a), a fee of $600 must be paid for an initial

application that: (1) has had four revisions, corrections, amendment requests, or application

reminders for the same application or licensure requirement; or (2) cumulatively has had

six revisions, corrections, amendment requests, or application reminders for the same license

application and the private career school seeks to continue with the application process with

additional application submissions. If this fee is paid, the private career school may submit

two final application submissions for review prior to application denial under section

136A.829, subdivision 1
, clause (2). This provision excludes from its scope nonrepetitive

questions or clarifications initiated by the school before the submission of the application,

initial interpretation questions or inquiries from the office regarding a completed application,

and initial requests from the office for verification or validation of a completed application.

deleted text end

Sec. 45.

Minnesota Statutes 2025 Supplement, section 136A.824, subdivision 2, is amended

to read:

Subd. 2.

Renewal licensure fee; late fee.

(a) The office processing fee for a renewal

licensure application is:

(1) for a private career school, the license renewal fee is $3,160; and

(2) for a private career school licensed by another state agency and that also has a limited

license with the office exclusively in order to participate in state financial aid, the license

renewal fee is $1,500.

(b) If a license renewal application is not received by the office by the expiration of the

current license, a late fee of $100 per business day, not to exceed $3,000, shall be assessed.

deleted text begin

(c) In addition to the fee under paragraph (a), a fee of $600 must be paid for a renewal

application that: (1) has had four revisions, corrections, amendment requests, or application

reminders for the same application or licensure requirement; or (2) cumulatively has had

six revisions, corrections, amendment requests, or application reminders for the same license

application and the private career school seeks to continue with the application process with

additional application submissions. If this fee is paid, the private career school may submit

two final application submissions for review prior to application denial under section

136A.829, subdivision 1
, clause (2). This provision excludes from its scope nonrepetitive

questions or clarifications initiated by the school before the submission of the application,

initial interpretation questions or inquiries from the office regarding a completed application,

and initial requests from the office for verification or validation of a completed application.

deleted text end

Sec. 46.

Minnesota Statutes 2024, section 136A.826, subdivision 1, is amended to read:

Subdivision 1.

Catalog, brochure, or electronic display.

new text begin
(a)
new text end
A private career school

or its agent must provide the catalog, brochure, or electronic display required in
new text begin
this
new text end
section
deleted text begin

136A.822, subdivision 10
,
deleted text end
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 private

career school that does not use a written contract or enrollment agreement.

new text begin

(b) A catalog, brochure, or electronic display must include, at a minimum:

new text end

new text begin

(1) identifying data, such as volume number or date of publication;

new text end

new text begin

(2) name, address, governing body, and names of senior officials;

new text end

new text begin

(3) an academic calendar showing legal holidays, beginning and ending dates of each

course quarter, term, or semester, and other important dates;

new text end

new text begin

(4) the policy and regulations on enrollment including dates and specific entrance

requirements for each program;

new text end

new text begin

(5) the policy and regulations regarding leave, absences, class cuts, make-up work,

tardiness, and interruptions for unsatisfactory attendance;

new text end

new text begin

(6) the policy and regulations regarding standards of progress for the student including

the grading system of the private career school, the minimum grades considered satisfactory,

conditions for interruption for unsatisfactory grades or progress, a description of any

probationary period allowed by the private career school, and conditions of reentrance for

those dismissed for unsatisfactory progress;

new text end

new text begin

(7) the policy and regulations regarding student conduct and conditions for dismissal

for unsatisfactory conduct;

new text end

new text begin

(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student

activities, laboratory fees, service charges, rentals, deposits, and all other charges;

new text end

new text begin

(9) the policy and regulations, including an explanation of section 136A.827, regarding

refunding tuition, fees, and other charges if the student does not enter the program, withdraws

from the program, or the program is discontinued;

new text end

new text begin

(10) a description of the available facilities and equipment;

new text end

new text begin

(11) a course outline or syllabus 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;

new text end

new text begin

(12) the policy and regulations regarding granting credit for previous education and

preparation;

new text end

new text begin

(13) a notice to students relating to the transferability of any credits earned; or

new text end

new text begin

(14) a procedure for investigating and resolving student complaints and the rights of the

student under section 136A.8295.

new text end

Sec. 47.

Minnesota Statutes 2024, section 136A.827, subdivision 1, is amended to read:

Subdivision 1.

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.
new text begin
If there is no contract, student means the party who has been

accepted into the course or program.
new text end

Sec. 48.

Minnesota Statutes 2024, section 136A.827, subdivision 4, is amended to read:

Subd. 4.

Proration.

(a) When a student has been accepted by a private career school

and gives notice of cancellation after the program of instruction has begun, the student is

entitled to a refund if, at the last documented date of attendance, the student has not completed

at least 75 percent of the entire program of instruction. For purposes of this subdivision,

program of instruction is calculated under paragraph (c) or (d). Program of instruction does

not mean one term, a payment period, a module, or any other portion of the entire

instructional program.

(b) A notice of cancellation from a student under this subdivision must be confirmed in

writing by the private career school and mailed to the student's last known address. The

confirmation from the school must state that the school has withdrawn the student from

enrollment
deleted text begin
, and if this action was not the student's intent, the student must contact the school
deleted text end
.

(c) The length of a program of instruction for a program that has a defined calendar start

and end date that does not change after the program has begun equals the number of days

from the first scheduled date of the program through the last scheduled date of the program.

To calculate the completion percentage, divide the number of calendar days from the first

date of the program through the student's last documented date of attendance by the length

of the program of instruction, and truncate the result after the second digit following the

decimal point. If the completion percentage is less than 75 percent, the private career school

may retain:

(1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied

by the completion percentage; plus

(2) the initial program application fees, not to exceed $50; plus

(3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.

(d) The length of a program of instruction for a program that is measured in clock hours

equals the number of clock hours the student was scheduled to attend. To calculate the

completion percentage, divide the number of clock hours that the student actually attended

by the length of the program of instruction, and truncate the result after the second digit

following the decimal point. If the completion percentage is less than 75 percent, the private

career school may retain:

(1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied

by the completion percentage; plus

(2) the initial program application fees, not to exceed $50; plus

(3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.

Sec. 49.

Minnesota Statutes 2024, section 136A.828, subdivision 6, is amended to read:

Subd. 6.

deleted text begin
Financial aid payments
deleted text end
new text begin
Transcripts
new text end
.

deleted text begin

(a) All private career schools must

collect, assess, and distribute funds received from loans or other financial aid as provided

in this subdivision.

deleted text end

deleted text begin

(b) Student loans or other financial aid funds received from federal, state, or local

governments or administered in accordance with federal student financial assistance programs

under title IV of the Higher Education Act of 1965, as amended, United States Code, title

20, chapter 28, must be collected and applied as provided by applicable federal, state, or

local law or regulation.

deleted text end

deleted text begin

(c) Student loans or other financial aid assistance received from a bank, finance or credit

card company, or other private lender must be collected or disbursed as provided in

paragraphs (d) and (e).

deleted text end

deleted text begin

(d) Loans or other financial aid payments for amounts greater than $3,000 must be

disbursed:

deleted text end

deleted text begin

(1) in two equal disbursements, if the term length is more than four months. The loan

or payment amounts may be disbursed no earlier than the first day the student attends class

with the remainder to be disbursed halfway through the term; or

deleted text end

deleted text begin

(2) in three equal disbursements, if the term length is more than six months. The loan

or payment amounts may be disbursed no earlier than the first day the student attends class,

one-third of the way through the term, and two-thirds of the way through the term.

deleted text end

deleted text begin

(e) Loans or other financial aid payments for amounts less than $3,000 may be disbursed

as a single disbursement on the first day a student attends class, regardless of term length.

deleted text end

deleted text begin

(f) No private career school may enter into a contract or agreement with, or receive any

money from, a bank, finance or credit card company, or other private lender, unless the

private lender follows the requirements for disbursements provided in paragraphs (d) and

(e).

deleted text end

deleted text begin

(g)
deleted text end
No private career school may withhold an official transcript for arrears or default on

any loan made by the private career school to a student if the loan qualifies as an institutional

loan under United States Code, title 11, section 523(a)(8)(b).

Sec. 50.

Minnesota Statutes 2024, section 136A.829, subdivision 1, is amended to read:

Subdivision 1.

Grounds.

The office may, after notice and upon providing an opportunity

for a hearing
deleted text begin
,
deleted text end
under chapter 14 if requested by the parties adversely affected, refuse to issue,

refuse to renew, revoke, or suspend a license or solicitor's permit for any of the following

grounds:

(1) violation of any provisions of sections
136A.821
to
136A.833
or any rule adopted

by the office;

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

(3) presenting to prospective students information relating to the private career school

that is false, fraudulent, deceptive, substantially inaccurate, or misleading;

(4) refusal to allow reasonable inspection or supply reasonable information after written

request by the office;

(5) having been
deleted text begin
administratively
deleted text end
determined by the commissioner or judicially determined

to have committed fraud or any other material violation of law involving federal, state, or

local government funds;

(6) the existence of any circumstance that would be grounds for the refusal of an initial

or renewal license under section
136A.822
; or

(7) using fraudulent or coercive practices, whether in the course of business in this state

or elsewhere.

Sec. 51.

Minnesota Statutes 2024, section 136A.829, subdivision 3, is amended to read:

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 private career school license
deleted text begin
for periods of less than one year
deleted text end

if in the judgment of the office correctable deficiencies exist at the time of application and

when
deleted text begin
refusal to issue private career school license would adversely affect currently enrolled

students
deleted text end
new text begin
the risk of harm to students can be minimized through the use of restrictions and

requirements as conditions of the license. Conditional licenses may include requirements

and restrictions for:

new text end

new text begin

(1) periodic monitoring and submission of reports on the school's deficiencies to ascertain

whether compliance improves;

new text end

new text begin

(2) periodic collaborative consultations with the school on noncompliance with sections

136A.82 to 136A.834 or how the institution is managing compliance;

new text end

new text begin

(3) the submission of contingency plans such as teach-out plans or transfer pathways

for students;

new text end

new text begin

(4) a prohibition from accepting tuition and fee payments prior to the add-drop period

of the current period of instruction or before the funding has been earned by the school

according to the refund requirements of section 136A.827;

new text end

new text begin

(5) a prohibition from enrolling new students;

new text end

new text begin

(6) enrollment caps;

new text end

new text begin

(7) the initiation of alternative processes and communications with students enrolled at

the school to notify students of deficiencies or probation status;

new text end

new text begin

(8) the submission of a surety under section 136A.822, subdivision 6, paragraph (b),

that exceeds ten percent of the preceding year's net revenue from student tuition, fees, and

other required institutional charges collected; or

new text end

new text begin

(9) submission of closure information under section 136A.8225
new text end
;

(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 shall 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 private career school is in compliance with the

provisions of sections
136A.82
to
136A.834
, no further action leading to refusal, revocation,

or suspension shall be taken.

deleted text begin

(d) To grant a private career school a probationary license for periods of less than three

years if, in the judgment of the office, correctable deficiencies exist at the time of application

that need more than one year to correct and when the risk of harm to students can be

minimized through the use of restrictions and requirements as conditions of the license.

Probationary licenses may include requirements and restrictions for:

deleted text end

deleted text begin

(1) periodic monitoring and submission of reports on the school's deficiencies to ascertain

whether compliance improves;

deleted text end

deleted text begin

(2) periodic collaborative consultations with the school on noncompliance with sections

136A.82
to
136A.834
or how the institution is managing compliance;

deleted text end

deleted text begin

(3) the submission of contingency plans such as teach-out plans or transfer pathways

for students;

deleted text end

deleted text begin

(4) a prohibition from accepting tuition and fee payments prior to the add/drop period

of the current period of instruction or before the funds have been earned by the school

according to the refund requirements of section
136A.827
;

deleted text end

deleted text begin

(5) a prohibition from enrolling new students;

deleted text end

deleted text begin

(6) enrollment caps;

deleted text end

deleted text begin

(7) the initiation of alternative processes and communications with students enrolled at

the school to notify students of deficiencies or probation status;

deleted text end

deleted text begin

(8) the submission of a surety under section
136A.822, subdivision 6
, paragraph (b),

clause (1), that exceeds ten percent of the preceding year's net revenue from student tuition,

fees, and other required institutional charges collected; or

deleted text end

deleted text begin

(9) submission of closure information under section
136A.8225
.

deleted text end

Sec. 52.

Minnesota Statutes 2024, section 136A.8295, subdivision 5, is amended to read:

Subd. 5.

Appeals.

Any order requiring remedial action by the school or assigning a

penalty under section
136A.832
is appealable in accordance with chapter 14. The request

for an appeal must be made in writing to the office within 30 days of the date the school is

notified of the action of the office. The court shall award costs and reasonable attorney fees

in a contested chapter 14 hearing to the office if
deleted text begin
: (1)
deleted text end
the office substantially prevails on the

merits in an action brought under this section
deleted text begin
; and (2) the school has a net income from

student tuition, fees, and other required institutional charges collected from the last fiscal

year of $1,000,000 or greater
deleted text end
.

Sec. 53.

Minnesota Statutes 2024, section 136A.83, is amended to read:

136A.83 INSPECTION.

(a) The office or a delegate may inspect the instructional books and records, classrooms,

dormitories, tools, equipment and classes of any private career school or applicant for license

at any reasonable time.
deleted text begin
The office may require the submission of audited financial statements.
deleted text end

The office or a delegate may inspect the financial books and records of the private career

school. In no event shall such financial information be used by the office to regulate or set

the tuition or fees charged by the private career school.

(b) Data obtained from an inspection of the financial records of a private career school

or submitted to the office as part of a license application or renewal are nonpublic data as

defined in section
13.02, subdivision 9
. Data obtained from inspections may be disclosed

to other members of the office, to law enforcement officials, or in connection with a legal

or administrative proceeding commenced to enforce a requirement of law.

Sec. 54.

Minnesota Statutes 2025 Supplement, section 136A.833, subdivision 1, is amended

to read:

Subdivision 1.

Application for exemptions.

(a) A school that seeks an exemption from

the provisions of sections
136A.822
to
136A.834
for the school and all of its programs or

some of its programs must apply to the office to establish that the school or program meets

the requirements of an exemption. An exemption for the school or program expires two

years from the date of approval or when a school
deleted text begin
adds a new program or
deleted text end
makes a

modification
deleted text begin
equal to or greater than 25 percent to an existing educational program
deleted text end
new text begin
that

brings the school or program outside the scope of the school's or program's exemption
new text end
. If

a school is reapplying for an exemption, the application must be submitted to the office 90

days before the current exemption expires. If a school fails to apply within 90 days of

expiration
new text begin
or any change that would bring the school or program outside the scope of the

school's or program's exemption
new text end
, the school is subject to fees and penalties under sections

136A.831
and
136A.832
. This exemption shall not extend to any school that uses any

publication or advertisement that is not truthful and gives any false, fraudulent, deceptive,

inaccurate, or misleading impressions about the school or its personnel, programs, services,

or occupational opportunities for its graduates for promotion and student recruitment.

Exemptions denied under this section are subject to appeal under section
136A.829
. If an

appeal is initiated, the denial of the exemption is not effective until the final determination

of the appeal, unless immediate effect is ordered by the court.

(b) A school that meets any of the exemptions in this section and exclusively seeks to

be listed on the eligible training provider list, access WIOA funding, or receive the dual

training grant, is exempt from sections
136A.822
to
136A.834
, except the school must

satisfy the requirements of section
136A.822, subdivisions 4
, clauses (1), (2), and (3); 8,

clauses (9) and (10); 10, clause (8); and 12.

Sec. 55.

Minnesota Statutes 2025 Supplement, section 136A.833, subdivision 2, is amended

to read:

Subd. 2.

Exemption reasons.

Sections
136A.821
to
136A.832
shall not apply to the

following:

(1)
deleted text begin
private career schools engaged exclusively in the teaching of avocational programs

that are engaged primarily for personal development, recreation, or remedial education, and

are not generally intended for vocational or career advancement, including adult basic

education, exercise or fitness teacher programs, modeling, or acting, as determined by the

office;
deleted text end

deleted text begin

(2)
deleted text end
classes, courses, or programs providing 40 or fewer clock hours of instruction; and

deleted text begin

(3)
deleted text end
new text begin
(2)
new text end
private career schools providing training, instructional programs, or courses where

tuition, fees, and any other charges for a student to participate do not exceed $500.

Sec. 56.

Minnesota Statutes 2024, section 136G.03, subdivision 30, is amended to read:

Subd. 30.

Qualified higher education expenses.

"Qualified higher education expenses"

means expenses as defined in
deleted text begin
section
deleted text end
new text begin
sections 529(c)(7), (8), and (9);
new text end
529(e)(3)
new text begin
; and 529(f)
new text end

of the Internal Revenue Code.

Sec. 57.

Minnesota Statutes 2024, section 136G.03, subdivision 31, is amended to read:

Subd. 31.

Qualified rollover distribution.

"Qualified rollover distribution" means a

distribution that qualifies as a rollover under section 529(c)(3)(C)
new text begin
and (E)
new text end
of the Internal

Revenue Code.

Sec. 58.

Minnesota Statutes 2024, section 136G.03, is amended by adding a subdivision

to read:

new text begin

Subd. 35.

new text end

new text begin

Uncashed distribution check.

new text end

new text begin

"Uncashed distribution check" means any

distribution check generated by an account owner's request regardless of the payee that

remains uncashed by the payee for at least 180 days.

new text end

Sec. 59.

Minnesota Statutes 2024, section 136G.05, subdivision 10, is amended to read:

Subd. 10.

Data.

Account owner data, account data, and data on beneficiaries of accounts

are private data on individuals or nonpublic data as defined in section
13.02
, except that the

names and addresses of the beneficiaries of accounts that receive matching grants are public.
new text begin

The office may use data received under this chapter to share information with account

owners about the office's other programs and resources including those that describe the

process to pay for postsecondary education.
new text end

Sec. 60.

Minnesota Statutes 2024, section 136G.13, is amended by adding a subdivision

to read:

new text begin

Subd. 6.

new text end

new text begin

Handling of uncashed distribution checks.

new text end

new text begin

Unless otherwise directed by the

office, the plan administrator must mark an uncashed distribution check as no longer

outstanding and must credit back the amount of the check to the account owner's account

from which the check was originally disbursed. The amount being credited must be accounted

for as a new contribution and will be invested by the plan administrator according to the

current instructions on file from the account owner.

new text end

Sec. 61.

Minnesota Statutes 2024, section 137.0246, is amended by adding a subdivision

to read:

new text begin

Subd. 3.

new text end

new text begin

Governor appointments.

new text end

new text begin

If the joint legislative committee recommends a

candidate to the joint convention for a vacancy on the Board of Regents of the University

of Minnesota and the legislature does not elect a person to fill the vacancy, the governor,

in making an appointment to fill the vacancy, may only appoint a candidate recommended

by the joint legislative committee.

new text end

Sec. 62.

Minnesota Statutes 2024, section 137.39, is amended by adding a subdivision to

read:

new text begin

Subd. 2a.

new text end

new text begin

Prohibition on curriculum control.

new text end

new text begin

The Board of Regents of the University

of Minnesota and the medical school are requested to prohibit any for-profit entity from

developing, managing, or controlling curriculum taught at the medical school. Nothing in

this subdivision prevents an individual from teaching at the medical school if the individual

is also employed by a for-profit entity.

new text end

Sec. 63.

Minnesota Statutes 2024, section 137.39, is amended by adding a subdivision to

read:

new text begin

Subd. 2b.

new text end

new text begin

Reporting.

new text end

new text begin

By February 15 of each odd-numbered year, the Board of Regents

of the University of Minnesota is requested to submit a report on medical school curriculum

to the chairs and ranking minority members of the legislative committees with jurisdiction

over higher education. At a minimum, the report must include information regarding for-profit

entity funds used to:

new text end

new text begin

(1) pay salaries of teaching faculty;

new text end

new text begin

(2) support new or existing courses offered by the medical school; and

new text end

new text begin

(3) support initiatives of the medical school.

new text end

Sec. 64.
new text begin
REPEALER.
new text end

new text begin

(a)

new text end

new text begin

Minnesota Statutes 2024, sections 124D.09, subdivision 10a; 136A.657; 136A.827,

subdivisions 1b and 2; 136A.834, subdivisions 2, 3, and 4; 136G.03, subdivision 11; and

136G.09, subdivision 10,

new text end

new text begin

are repealed.

new text end

new text begin

(b)

new text end

new text begin

Minnesota Statutes 2025 Supplement, section 136A.834, subdivisions 1 and 5,

new text end

new text begin

are

repealed.

new text end

APPENDIX

Repealed Minnesota Statutes: S3943-1

124D.09 POSTSECONDARY ENROLLMENT OPTIONS ACT.

Subd. 10a.

Statewide concurrent enrollment evaluation.

The Office of Higher Education and the Department of Education shall collaborate in order to provide annual statewide evaluative information on concurrent enrollment programs to the legislature. The commissioners of the Office of Higher Education and the Department of Education, in consultation with stakeholders, including students and parents, must determine what student demographics and outcomes data are appropriate to include in the evaluation, and will use systems available to the office and department to minimize the reporting burden on postsecondary institutions. The commissioners must report by December 1, 2021, and each year thereafter, to the committees of the legislature with jurisdiction over early education through grade 12 and Minnesota State Colleges and Universities.

136A.657 EXEMPTION; RELIGIOUS SCHOOLS.

Subdivision 1.

Exemption.

(a) A program is exempt from the provisions of sections
136A.61
to
136A.71
if it is:

(1) offered by a school or any department or branch of a school that is substantially owned, operated, or supported by a bona fide church or religious organization;

(2) primarily designed for, aimed at and attended by persons who sincerely hold or seek to learn the particular religious faith or beliefs of that church or religious organization; and

(3) primarily intended to prepare its students to become ministers of, to enter into some other vocation closely related to, or to conduct their lives in consonance with, the particular faith of that church or religious organization.

(b) A school or a department or branch of a school is exempt from the provisions of sections
136A.61
to
136A.71
if all of its programs are exempt under paragraph (a).

Subd. 2.

Limitation.

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

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

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

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

(c) This exemption shall not extend to any school that uses any publication or advertisement that is not truthful and gives any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school; its personnel, programs, or services; or occupational opportunities for its graduates for promotion and student recruitment. Exemptions denied under this section are subject to appeal under section
136A.65, subdivision 8
, paragraph (c). If an appeal is initiated, the denial of the exemption is not effective until the final determination of the appeal, unless immediate effect is ordered by the court.

Subd. 3.

Scope.

Nothing in sections
136A.61
to
136A.71
, or the rules adopted pursuant thereto, shall be interpreted as permitting the office to determine the truth or falsity of any particular set of religious beliefs.

Subd. 4.

Statement required; religious nature.

Any degree awarded upon completion of a religiously exempt program shall include descriptive language to make the religious nature of the award clear.

Subd. 5.

Application.

A school that seeks an exemption under this section from the provisions of sections
136A.61
to
136A.71
must apply to the office to establish that the school meets the requirements of an exemption. An exemption expires two years from the date of approval or when a school adds a new program or makes a modification equal to or greater than 25 percent to an existing educational program. If a school is reapplying for an exemption, the application must be submitted to the office 90 days before the current exemption expires.

136A.827 REFUNDS.

Subd. 1b.

Short-term programs.

Licensed private career schools conducting programs not exceeding 40 hours in length shall not be required to make a full refund once a program has commenced and shall be allowed to prorate any refund based on the actual length of the program as stated in the private career school catalog or advertisements and the number of hours attended by the student.

Subd. 2.

Private career schools using written contracts.

(a) Notwithstanding anything to the contrary, a private career school that uses a written contract or enrollment agreement shall refund all tuition, fees and other charges paid by a student, if the student gives notice of cancellation within five business days after the day on which the contract was executed regardless of whether the program has started.

(b) When a student has been accepted by the private career school and has entered into a contractual agreement with the private career school and gives notice of cancellation following the fifth business day after the date of execution of contract, but before the start of the program in the case of resident private career schools, or before the first lesson has been serviced by the private career school in the case of distance education private career schools, all tuition, fees and other charges, except 15 percent of the total cost of the program but not to exceed $50, shall be refunded to the student.

136A.834 EXEMPTION; RELIGIOUS SCHOOLS.

Subdivision 1.

Exemption.

(a) A program is exempt from the provisions of sections
136A.821
to
136A.832
if it is:

(1) offered by a school or any department or branch of a school that is substantially owned, operated, or supported by a bona fide church or religious organization;

(2) primarily designed for, aimed at, and attended by persons who sincerely hold or seek to learn the particular religious faith or beliefs of that church or religious organization; and

(3) primarily intended to prepare its students to become ministers of, to enter into some other vocation closely related to, or to conduct their lives in consonance with the particular faith of that church or religious organization.

(b) Any school or any department or branch of a school is exempt from the provisions of sections
136A.821
to
136A.832
if all of its programs are exempt under paragraph (a).

Subd. 2.

Limitations.

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

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

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

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

(c) This exemption shall not extend to any school that uses any publication or advertisement that is not truthful and gives any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school or its personnel, programs, services, or occupational opportunities for graduates for promotion and student recruitment. Exemptions denied under this section are subject to appeal under section
136A.65, subdivision 8
, paragraph (c). If an appeal is initiated, the denial of the exemption is not effective until the final determination of the appeal, unless immediate effect is ordered by the court.

Subd. 3.

Scope.

Nothing in sections
136A.82
to
136A.834
or the rules adopted under them shall be interpreted as permitting the office to determine the truth or falsity of any particular set of religious beliefs.

Subd. 4.

Descriptive language required.

Any certificate, diploma, degree, or other formal recognition awarded upon completion of any religiously exempt program shall include such descriptive language as to make the religious nature of the award clear.

Subd. 5.

Application.

A school that seeks an exemption from the provisions of sections
136A.82
to
136A.834
must apply to the office to establish that the school meets the requirements of an exemption. An exemption expires two years from the date of approval or when a school adds a new program or makes a modification equal to or greater than 25 percent to an existing educational program. If a school is reapplying for an exemption, the application must be submitted to the office 90 days before the current exemption expires. If a school fails to apply within 90 days of expiration, the school is subject to the fees and penalties under sections
136A.831
and
136A.832
.

136G.03 DEFINITIONS.

Subd. 11.

Dormant account.

"Dormant account" means an account that has not received contributions for at least three consecutive years and the account statements sent to the account owner have been returned as undeliverable.

136G.09 PLAN ACCOUNTS; GENERALLY.

Subd. 10.

Dormant accounts.

(a) The plan administrator shall attempt to locate the account owner or the beneficiary, or both, to determine the disposition of a dormant account. A fee of five percent of the total account balance of the dormant account, not to exceed $100, plus allowable costs, may be charged for this service. Costs will not exceed $100 or five percent of the total account balance in the dormant account, whichever is less.

(b) If the account owner, or the account owner's legal heirs, are not found after three attempts by the plan administrator, the remaining funds in the dormant account must be turned over to the office. The funds are treated as unclaimed property for purposes of sections
345.31
to
345.60
, and the office shall turn all remaining dormant account funds over to the commissioner of commerce. If the dormant account has a matching grant account, all amounts in the beneficiary's matching grant account, if any, must be returned to the office.