HF 4252

HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
This Document can be made available  Printed
in alternative formats upon request  State of Minnesota  Page No.    372
  HOUSE OF REPRESENTATIVES
  NINETY-FOURTH SESSION
  H. F. No.  4252
03/12/2026    Authored by Wolgamott
  The bill was read for the first time and referred to the Committee on Higher Education Finance and Policy
04/22/2026    Adoption of Report: Amended and re-referred to the Committee on Ways and Means
04/28/2026    Adoption of Report: Placed on the General Register as Amended
  Read for the Second Time
05/04/2026    Calendar for the Day, Amended
  Read Third Time as Amended
  Passed by the House as Amended and transmitted to the Senate to include Floor Amendments
05/12/2026    Passed by the Senate as Amended and returned to the House
  Refused to concur and a Conference Committee was appointed
05/16/2026    Read Third Time as Amended by Conference and repassed by the House
  Read Third Time as Amended by Conference and repassed by the Senate
05/20/2026    Presented to Governor
05/27/2026    Governor Approval
1.1A bill for an act
1.2relating to higher education; modifying student aid reporting requirements; limiting
1.3use of student fees for maintaining certain athletic facilities; permitting lease of
1.4land for Rochester Community and Technical College; modifying American Indian
1.5Scholars program eligibility; modifying provisions related to private career schools;
1.6modifying provisions related to private and out-of-state public postsecondary
1.7institutions; expanding eligibility for paid blood donation leave to include
1.8employees of the Minnesota State Colleges and Universities; requiring
1.9postsecondary institutions to provide priority registration for pregnant and parenting
1.10students; requiring reports; appropriating money; amending Minnesota Statutes
1.112024, sections 43A.187; 135A.121, subdivision 2; 136A.053; 136A.091,
1.12subdivisions 2, 9; 136A.121, subdivision 2; 136A.1215, subdivision 5; 136A.1241,
1.13subdivision 8; 136A.125, subdivision 2; 136A.1274, subdivision 4; 136A.1275,
1.14subdivision 4; 136A.1465, subdivision 10; 136A.233, subdivision 3; 136A.62, by
1.15adding a subdivision; 136A.64, subdivisions 1, 5; 136A.65, subdivision 8;
1.16136A.653, subdivisions 1b, 3a; 136A.672, subdivision 5; 136A.675, subdivision
1.171, by adding a subdivision; 136A.821, subdivisions 13, 16, 17; 136A.822,
1.18subdivisions 4, 10, 12, by adding a subdivision; 136A.823, subdivisions 1, 3;
1.19136A.826, subdivision 1; 136A.827, subdivisions 1, 4; 136A.828, subdivision 6;
1.20136A.829, subdivisions 1, 3, as amended; 136A.8295, subdivision 5; 136A.83;
1.21136G.03, subdivisions 30, 31, by adding a subdivision; 136G.05, subdivision 10;
1.22136G.13, by adding a subdivision; 137.39, by adding a subdivision; 268.193,
1.23subdivision 2; Minnesota Statutes 2025 Supplement, sections 135A.1582,
1.24subdivisions 1, 2, 3; 136A.246, subdivision 1a; 136A.69, subdivision 1; 136A.82,
1.25subdivision 1; 136A.821, subdivisions 5, 21; 136A.822, subdivisions 6, 8, 13;
1.26136A.824, subdivisions 1, 2; 136A.833, subdivisions 1, 2; Laws 2025, First Special
1.27Session chapter 5, article 1, section 3, subdivisions 1, 3; proposing coding for new
1.28law in Minnesota Statutes, chapters 135A; 136A; repealing Minnesota Statutes
1.292024, sections 124D.09, subdivision 10a; 136A.657; 136A.827, subdivisions 1b,
1.302; 136A.834, subdivisions 2, 3, 4; 136G.03, subdivision 11; 136G.09, subdivision
1.3110; Minnesota Statutes 2025 Supplement, section 136A.834, subdivisions 1, 5.
1
HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
2.1  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.2    Section 1. Minnesota Statutes 2024, section 43A.187, is amended to read:
2.3      43A.187 BLOOD DONATION LEAVE.
2.4      A state employee must be granted leave from work with 100 percent of pay to donate
2.5  blood at a location away from the place of work. The total amount of leave used under this
2.6  section may not exceed three hours in a 12-month period, and must be determined by the
2.7  employee. A state employee seeking leave from work under this section must provide 14
2.8  days' notice to the appointing authority. This leave must not affect the employee's vacation
2.9  leave, pension, compensatory time, personal vacation days, sick leave, earned overtime
2.10 accumulation, or cause a loss of seniority. For the purposes of this section, "state employee"
2.11 does not include an employee of the Minnesota State Colleges and Universities.
2.12   Sec. 2. [135A.0435] ATHLETIC FEES.
2.13     The Board of Trustees of the Minnesota State Colleges and Universities must not impose
2.14 or maintain any mandatory student fee or increase tuition for the purpose of maintaining
2.15 competitive athletic facilities. The Board of Regents of the University of Minnesota is
2.16 requested to consider adoption of a policy consistent with this section. Nothing in this section
2.17 prohibits the imposition of a mandatory fee or tuition increase for the purpose of maintaining
2.18 athletic facilities used solely or primarily for recreation by the general student body.
2.19   Sec. 3. [135A.082] DEVELOPMENTAL COURSES.
2.20     (a) For purposes of this section, "developmental course" means a postsecondary course
2.21 taken to prepare a student for college-level work that the postsecondary institution does not
2.22 grant credit for and that cannot be used to meet degree, diploma, or certificate requirements.
2.23     (b) A public postsecondary institution that receives financial aid on behalf of students
2.24 under section 136A.121 must, before a student enrolls in a developmental course: (1) provide
2.25 the student with a clear, written explanation regarding the difference between a developmental
2.26 course and a course that provides credits that count toward graduation; and (2) require the
2.27 student to sign a written acknowledgment that the student understands the difference.
2.28   Sec. 4. Minnesota Statutes 2024, section 135A.121, subdivision 2, is amended to read:
2.29     Subd. 2. Eligibility. To be eligible each year for the program a student must:
Sec. 4.  2
HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
3.1(1) be enrolled in an undergraduate certificate, diploma, or degree program at the
3.2  University of Minnesota or a Minnesota state college or university;
3.3(2) be either (i) a Minnesota student eligible for a resident for resident tuition purposes
3.4  tuition rate who is an enrolled member or citizen of a federally recognized American Indian
3.5  Tribe or Canadian First Nation, or (ii) an enrolled member or citizen of a Minnesota Tribal
3.6  Nation, regardless of resident tuition status;
3.7(3) have not (i) obtained a baccalaureate degree, or (ii) been enrolled for 12 semesters
3.8  or the equivalent, excluding courses taken that qualify as developmental education or below
3.9  college-level; and
3.10(4) meet satisfactory academic progress as defined under section 136A.101, subdivision
3.11 10.
3.12   Sec. 5. Minnesota Statutes 2025 Supplement, section 135A.1582, subdivision 1, is amended
3.13 to read:
3.14Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
3.15 the meanings given.
3.16(b) "Parenting student" means a student enrolled at a public college or university
3.17 postsecondary institution who is the parent or legal guardian of or can claim as a dependent
3.18 a child under the age of 18.
3.19(c) "Postsecondary institution" means an institution governed by the Board of Trustees
3.20 of the Minnesota State Colleges and Universities or a private postsecondary institution that
3.21 offers in-person courses on a campus located in Minnesota and is an eligible institution as
3.22 defined in section 136A.103. Institutions governed by the Board of Regents of the University
3.23 of Minnesota are requested to comply with this section.
3.24(c) (d) "Pregnancy or related conditions" has the meaning given in Code of Federal
3.25 Regulations, title 34, section 106.2.
3.26(d) "Postsecondary institution" means an institution governed by the Board of Trustees
3.27 of the Minnesota State Colleges and Universities or a private postsecondary institution that
3.28 offers in-person courses on a campus located in Minnesota and is an eligible institution as
3.29 defined in section 136A.103. Institutions governed by the Board of Regents of the University
3.30 of Minnesota are requested to comply with this section.
3.31(e) "Priority registration" means an opportunity to register for courses before the opening
3.32 of general registration for the majority of undergraduate students.
Sec. 5.  3
HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
4.1    Sec. 6. Minnesota Statutes 2025 Supplement, section 135A.1582, subdivision 2, is amended
4.2  to read:
4.3      Subd. 2. Rights and protections. (a) A postsecondary institution may not require and
4.4  the University of Minnesota is requested not to require a pregnant or parenting student,
4.5  solely because of the student's status as a pregnant or parenting student or due to issues
4.6  related to the student's pregnancy or parenting, to:
4.7      (1) take a leave of absence or withdraw from the student's degree or certificate program;
4.8      (2) limit the student's studies;
4.9      (3) participate in an alternative program;
4.10     (4) change the student's major, degree, or certificate program; or
4.11     (5) refrain from joining or cease participating in any course, activity, or program at the
4.12 college or university postsecondary institution.
4.13     (b) A postsecondary institution shall provide and the University of Minnesota is requested
4.14 to provide reasonable modifications to a pregnant student, including modifications that:
4.15     (1) would be provided to a student with a temporary medical condition; or
4.16     (2) are related to the health and safety of the student and the student's unborn child, such
4.17 as allowing the student to maintain a safe distance from substances, areas, and activities
4.18 known to be hazardous to pregnant women or unborn children.
4.19     (c) A postsecondary institution must and the University of Minnesota is requested to,
4.20 for reasons related to a student's pregnancy, childbirth, or any resulting medical status or
4.21 condition:
4.22     (1) excuse the student's absence for a reasonable period of time as determined to be
4.23 medically necessary by a student's treating health care provider insofar as to not compromise
4.24 the fundamental outcomes of the academic course, program, or activity. If the postsecondary
4.25 institution has a student medical leave or student temporary disability policy that provides
4.26 a longer period of leave, the policy must be made available to students affected by pregnancy
4.27 and related conditions;
4.28     (2) allow the student to make up missed assignments or assessments;
4.29     (3) allow the student additional time to complete assignments in the same manner as the
4.30 institution allows for a student with a temporary medical condition; and
Sec. 6.  4
HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
5.1      (4) provide the student with access to instructional materials and video recordings of
5.2  lectures for classes for which the student has an excused absence under this section to the
5.3  same extent that instructional materials and video recordings of lectures are made available
5.4  to any other student with an excused absence.; and
5.5      (5) ensure the benefits and services provided to students affected by pregnancy are no
5.6  less than those provided to students with temporary medical conditions.
5.7      (d) A postsecondary institution must and the University of Minnesota is requested to
5.8  allow a pregnant or parenting student to:
5.9      (1) take a leave of absence for a reasonable period of time as determined to be medically
5.10 necessary by a student's treating health care provider or the health care provider of the
5.11 parenting student's child insofar as to not compromise the fundamental outcomes of the
5.12 academic course, program, or activity. If the postsecondary institution has a student medical
5.13 leave or student temporary disability policy that provides a longer period of leave, the policy
5.14 must be made available to students affected by pregnancy and related conditions and to
5.15 parenting students; and
5.16     (2) if in good academic standing at the time the student takes a leave of absence, return
5.17 to the student's degree or certificate program in good academic standing without being
5.18 required to reapply for admission.; and
5.19     (3) obtain reasonable modifications, including an excused absence for parenting students
5.20 to attend to their child's health care needs, unless the modification would compromise the
5.21 fundamental outcomes of the academic course, program, or activity.
5.22     (e) If a postsecondary institution provides early registration for courses or programs at
5.23 the institution for any group of students, the institution must provide and the University of
5.24 Minnesota is requested to provide early registration for those courses or programs for
5.25 pregnant or parenting students in the same manner. Priority registration for parenting students
5.26 shall include the following considerations:
5.27     (1) automatically assign eligible pregnant and parenting students a registration window
5.28 time that occurs no later than the earliest undergraduate registration period offered;
5.29     (2) ensure that priority registration is granted without a separate petition, discretionary
5.30 approval, or case-by-case determination beyond verification of parenting status;
5.31     (3) annual notification provided to all enrolled students describing the rights and
5.32 protections afforded to pregnant and parenting students;
Sec. 6.  5
HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
6.1      (4) provide notification of the priority registration process to each student who
6.2  self-identifies as a pregnant or parenting student; and
6.3      (5) publish information regarding programs, services, and student rights specific to
6.4  parenting students on the postsecondary institution's website.
6.5      (f) Postsecondary institutions must adopt policies and procedures to implement this
6.6  subdivision. The Board of Regents of the University of Minnesota is requested to comply
6.7  with this subdivision.
6.8    Sec. 7. Minnesota Statutes 2025 Supplement, section 135A.1582, subdivision 3, is amended
6.9  to read:
6.10     Subd. 3. Policy on discrimination. Each postsecondary institution must adopt and the
6.11 University of Minnesota is requested to adopt a policy for students on pregnancy and
6.12 parenting discrimination. The policy must:
6.13     (1) include the contact information of the Title IX coordinator who is the designated
6.14 point of contact for a student requesting each protection or modification under this section.
6.15 Contact information must include the Title IX coordinator's name, phone number, email,
6.16 and office;
6.17     (2) be posted in an easily accessible, straightforward format on the college or university's
6.18 postsecondary institution's website; and
6.19     (3) be made available annually to faculty, staff, and employees of the college or university
6.20 postsecondary institution.
6.21   Sec. 8. Minnesota Statutes 2024, section 136A.053, is amended to read:
6.22     136A.053 CONSOLIDATED STUDENT AID REPORTING.
6.23     (a) The commissioner of the Office of Higher Education shall report annually beginning
6.24 February 15, 2026, to the chairs and ranking minority members of the legislative committees
6.25 with jurisdiction over higher education, on the details of programs administered under
6.26 sections 136A.091 to 136A.1276, 136A.121, 136A.1215, 136A.1241, 136A.125, 136A.126,
6.27 136A.1274, 136A.1275, 136A.1465, and 136A.231 to 136A.246 136A.233, including the:
6.28     (1) total funds appropriated and expended;
6.29     (2) total number of students applying for funds;
6.30     (3) total number of students receiving funds;
Sec. 8.  6
HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
7.1      (4) average and total award amounts;
7.2      (5) summary demographic data on award recipients;
7.3      (6) retention rates of award recipients;
7.4      (7) completion rates of award recipients;
7.5      (8) average cumulative debt at exit or graduation; and
7.6      (9) average time to completion.
7.7      (b) Data must be disaggregated by aid program, institution, aid year, race and ethnicity,
7.8  gender, income, socioeconomic status, family type, dependency status, and any other factors
7.9  determined to be relevant by the commissioner, as available. The commissioner must report
7.10 any additional data and outcomes relevant to the evaluation of programs administered under
7.11 sections 136A.091 to 136A.1276, 136A.121, 136A.1215, 136A.1241, 136A.125, 136A.126,
7.12 136A.1274, 136A.1275, 136A.1465, and 136A.231 to 136A.246 136A.233 as evidenced
7.13 by activities funded under each program.
7.14   Sec. 9. Minnesota Statutes 2024, section 136A.091, subdivision 2, is amended to read:
7.15     Subd. 2. Eligibility. To be eligible for a program stipend, a student shall:
7.16     (1) be a resident of Minnesota student under section 136A.101, subdivision 8;
7.17     (2) attend an eligible office-approved program;
7.18     (3) be in grades 3 through 12, but not have completed high school;
7.19     (4) meet income requirements for free or reduced-price school meals; and
7.20     (5) be 19 years of age or younger.
7.21   Sec. 10. Minnesota Statutes 2024, section 136A.091, subdivision 9, is amended to read:
7.22     Subd. 9. Report. Annually, the office shall submit a report to the legislative committees
7.23 with jurisdiction over higher education finance regarding the program providers, stipend
7.24 recipients, and program activities. The report shall include information about the students
7.25 served, the organizations providing services, program goals and outcomes, and student
7.26 outcomes in accordance with section 136A.053.
Sec. 10.  7
HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
8.1    Sec. 11. Minnesota Statutes 2024, section 136A.121, subdivision 2, is amended to read:
8.2Subd. 2. Eligibility for grants. (a) An applicant is eligible to be considered for a grant,
8.3  regardless of the applicant's sex, creed, race, color, national origin, or ancestry, under sections
8.4  136A.095 to 136A.131 if the office finds that the applicant:
8.5(1) is a resident of the state of Minnesota student under section 136A.101, subdivision
8.6  8;
8.7(2) is a graduate of a secondary school or its equivalent, or is 17 years of age or over,
8.8  and has met all requirements for admission as a student to an eligible college or technical
8.9  college of choice as defined in sections 136A.095 to 136A.131;
8.10(3) has met the financial need criteria established in Minnesota Rules;
8.11(4) is not in default, as defined by the office, of any federal or state student educational
8.12 loan;
8.13(5) is not more than 30 days in arrears in court-ordered child support that is collected or
8.14 enforced by the public authority responsible for child support enforcement or, if the applicant
8.15 is more than 30 days in arrears in court-ordered child support that is collected or enforced
8.16 by the public authority responsible for child support enforcement, but is complying with a
8.17 written payment agreement under section 518A.69 or order for arrearages; and
8.18(6) has not been convicted of or pled nolo contendere or guilty to a crime involving
8.19 fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,
8.20 subtitle B, chapter VI, part 668, subpart C.
8.21(b) A student is entitled to an additional semester or the equivalent of grant eligibility
8.22 if the student withdraws from enrollment:
8.23(1) for active military service after December 31, 2002, because the student was ordered
8.24 to active military service as defined in section 190.05, subdivision 5b or 5c;
8.25(2) for a serious health condition, while under the care of a medical professional, that
8.26 substantially limits the student's ability to complete the term; or
8.27(3) while providing care that substantially limits the student's ability to complete the
8.28 term to the student's spouse, child, or parent who has a serious health condition.
8.29   Sec. 12. [136A.1212] FRAUD; DENIAL OF FUNDING.
8.30Applicants or recipients of any student aid or grant program administered under chapter
8.31 136A may be denied funding if the applicant or recipient:
Sec. 12.  8
HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
9.1(1) presents information concerning the financial aid or grant application that is false,
9.2  fraudulent, misleading, deceptive, or inaccurate in a material respect;
9.3(2) refuses to allow reasonable inspection or to supply reasonable information after a
9.4  written request by the office or school has been received; or
9.5(3) has been determined by the commissioner or judicially determined to have committed
9.6  fraud or a material violation of law involving federal, state, or local government funding.
9.7    Sec. 13. Minnesota Statutes 2024, section 136A.1215, subdivision 5, is amended to read:
9.8Subd. 5. Reporting. By February 15 of each year, the commissioner of higher education
9.9  must submit a report on the details of the program under this section to the legislative
9.10 committees with jurisdiction over higher education finance and policy. The report must
9.11 include the following information, broken out by postsecondary institution: Annually, the
9.12 office must submit a report in accordance with section 135A.053.
9.13(1) the number of students receiving an award;
9.14(2) the average and total award amounts; and
9.15(3) summary demographic data on award recipients.
9.16   Sec. 14. Minnesota Statutes 2024, section 136A.1241, subdivision 8, is amended to read:
9.17Subd. 8. Report. (a) Annually, the office shall prepare an anonymized report to be
9.18 submitted annually to the chairperson and minority chairperson of the legislative committees
9.19 with jurisdiction over higher education that contains: must submit a report in accordance
9.20 with section 136A.053.
9.21(1) the number of students receiving foster grants and the institutions attended; and
9.22(2) annual retention and graduation data on students receiving foster grants.
9.23(b) The report required under this subdivision may be combined with other legislatively
9.24 required reporting. If submitted as a separate report, the report must be submitted by January
9.25 15.
9.26   Sec. 15. Minnesota Statutes 2024, section 136A.125, subdivision 2, is amended to read:
9.27Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if the
9.28 applicant:
9.29(1) is a resident of the state of Minnesota student under section 136A.101, subdivision
9.30 8, or the applicant's spouse is a resident of the state of Minnesota;
Sec. 15.  9
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
10.1      (2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled
10.2  as defined in section 125A.02, and who is receiving or will receive care on a regular basis
10.3  from a licensed or legal, nonlicensed caregiver;
10.4      (3) is income eligible as determined by the office's policies and rules, but is not a recipient
10.5  of assistance from the Minnesota family investment program;
10.6      (4) has not received child care grant funds for a period of ten semesters or the equivalent;
10.7      (5) is pursuing a nonsectarian program or course of study that applies to an undergraduate,
10.8  graduate, or professional degree, diploma, or certificate;
10.9      (6) is enrolled in at least one credit in an undergraduate program or one credit in a
10.10 graduate or professional program in an eligible institution; and
10.11     (7) is in good academic standing and making satisfactory academic progress.
10.12     (b) A student is entitled to an additional semester or equivalent of grant eligibility and
10.13 will be considered to be in continuing enrollment status upon return if the student withdraws
10.14 from enrollment:
10.15     (1) for active military service after December 31, 2002, because the student was ordered
10.16 to active military service as defined in section 190.05, subdivision 5b or 5c;
10.17     (2) for a serious health condition, while under the care of a medical professional, that
10.18 substantially limits the student's ability to complete the term; or
10.19     (3) while providing care that substantially limits the student's ability to complete the
10.20 term to the student's spouse, child, or parent who has a serious health condition.
10.21   Sec. 16. Minnesota Statutes 2024, section 136A.1274, subdivision 4, is amended to read:
10.22     Subd. 4. Reporting. By February 15 of each year, the commissioner must submit a
10.23 report on the details of the program under this section to the legislative committees with
10.24 jurisdiction over E-12 and higher education finance and policy. The report must include the
10.25 following information: Annually, the office must submit a report in accordance with section
10.26 136A.053. Additionally, the report must be submitted to the chairs and ranking minority
10.27 members of the legislative committees with jurisdiction over E-12 finance and policy.
10.28     (1) the number of eligible applicants and the number of teacher candidates receiving an
10.29 award, each broken down by postsecondary institution;
10.30     (2) the total number of awards, the total dollar amount of all awards, and the average
10.31 award amount; and
 Sec. 16.  10
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
11.1      (3) other summary data identified by the commissioner as outcome indicators.
11.2    Sec. 17. Minnesota Statutes 2024, section 136A.1275, subdivision 4, is amended to read:
11.3      Subd. 4. Reporting. (a) By February 1 of each year, the commissioner must submit a
11.4  report to the chairs and ranking minority members of the legislative committees with
11.5  jurisdiction over E-12 and higher education finance and policy. The report must include the
11.6  following information: Annually, the office must submit a report in accordance with section
11.7  136A.053. Additionally, the report must include
11.8      (1) the total number of awards, the total dollar amount of all awards, and the average
11.9  award amount;
11.10     (2) the number of eligible applicants and the number of student teachers receiving an
11.11 award, each broken down by postsecondary institution;
11.12     (3) the licensure areas and school districts in which the student teachers taught; and must
11.13 be submitted to the chairs and ranking minority members of the legislative committees with
11.14 jurisdiction over E-12 finance and policy.
11.15     (4) other summary data identified by the commissioner as outcome indicators, including
11.16 how many student teachers awarded a rural teacher grant were employed in a rural school
11.17 district after graduation.
11.18     (b) By July 1 of each odd numbered year, the commissioner must update and post on
11.19 the office's website a list of licensure shortage areas eligible for a grant under this section.
11.20   Sec. 18. Minnesota Statutes 2024, section 136A.1465, subdivision 10, is amended to read:
11.21     Subd. 10. Report. The commissioner of higher education shall submit a preliminary
11.22 report by September 1, 2025, and an annual report beginning February 15, 2026, to the
11.23 chairs and ranking minority members of the legislative committees with jurisdiction over
11.24 higher education, on the details of the program, including the: Annually, the office must
11.25 submit a report in accordance with section 136A.053.
11.26     (1) status of the scholarship fund; and
11.27     (2) North Star Promise participation data aggregated for each eligible institution to show
11.28 the:
11.29     (i) number of eligible students who received scholarships in the prior academic year;
11.30     (ii) average and total award amounts;
 Sec. 18.  11
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
12.1      (iii) summary demographic data on award recipients;
12.2      (iv) total number of students enrolled in eligible institutions in the prior academic year;
12.3      (v) retention rates of participating students; and
12.4      (vi) number of eligible students who graduated with a degree and, for each eligible
12.5  student, the number of consecutive semesters and nonconsecutive semesters attended prior
12.6  to graduation.
12.7    Sec. 19. Minnesota Statutes 2024, section 136A.233, subdivision 3, is amended to read:
12.8      Subd. 3. Payments. Work-study payments shall be made to eligible students by
12.9  postsecondary institutions as provided in this subdivision.
12.10     (a) Students shall be selected for participation in the program by the postsecondary
12.11 institution on the basis of student financial need.
12.12     (b) In selecting students for participation, priority must be given to students enrolled for
12.13 at least 12 credits. In each academic year, a student may be awarded work-study payments
12.14 for one period of nonenrollment or less than half-time enrollment if the student will enroll
12.15 on at least a half-time basis during the following academic term.
12.16     (c) Students will be paid for hours actually worked and the maximum hourly rate of pay
12.17 shall not exceed the maximum hourly rate of pay permitted under the federal college
12.18 work-study program.
12.19     (d) Minimum pay rates will be determined by an applicable federal or state law.
12.20     (e) The office shall annually establish a minimum percentage rate of student compensation
12.21 to be paid by an eligible employer.
12.22     (f) Each postsecondary institution receiving money for state work-study grants shall
12.23 make a reasonable effort to place work-study students in employment with eligible employers
12.24 outside the institution. However, a public employer other than the institution may not
12.25 terminate, lay off, or reduce the working hours of a permanent employee for the purpose
12.26 of hiring a work-study student, or replace a permanent employee who is on layoff from the
12.27 same or substantially the same job by hiring a work-study student.
12.28     (g) The percent of the institution's work-study allocation provided to graduate students
12.29 shall not exceed the percent of graduate student enrollment at the participating institution.
12.30     (h) An institution may use up to 30 percent of its allocation for student internships with
12.31 private, for-profit employers.
 Sec. 19.  12
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
13.1    Sec. 20. Minnesota Statutes 2025 Supplement, section 136A.246, subdivision 1a, is
13.2  amended to read:
13.3      Subd. 1a. Definitions. (a) The terms defined in this subdivision apply to this section.
13.4      (b) "Competency standard" has the meaning given in section 175.45, subdivision 2.
13.5      (c) "Eligible training" means training provided by an eligible training provider that:
13.6      (1) includes training to meet one or more identified competency standards;
13.7      (2) is instructor-led for a majority of the training or leads to an accredited certificate,
13.8  diploma, or degree issued by a postsecondary institution; and
13.9      (3) results in the employee receiving an industry-recognized degree, certificate, or
13.10 credential.
13.11     (d) "Eligible training provider" means an institution:
13.12     (1) operated by the Board of Trustees of the Minnesota State Colleges and Universities
13.13 or the Board of Regents of the University of Minnesota;
13.14     (2) licensed or registered as a postsecondary institution by the office; or
13.15     (3) exempt from the provisions of section 136A.822 to 136A.834 or 136A.61 to 136A.71
13.16 as approved by the office.
13.17     (e) "Industry-recognized degrees, certificates, or credentials" means:
13.18     (1) accredited certificates, diplomas, or degrees issued by a postsecondary institution;
13.19     (2) registered apprenticeship certifications or certificates;
13.20     (3) occupational licenses or registrations;
13.21     (4) certifications issued by, or recognized by, industry or professional associations; and
13.22     (5) other certifications as approved by the commissioner.
13.23   Sec. 21. Minnesota Statutes 2024, section 136A.62, is amended by adding a subdivision
13.24 to read:
13.25     Subd. 3b. Institution. "Institution" means school, as defined in this section.
13.26   Sec. 22. Minnesota Statutes 2024, section 136A.64, subdivision 1, is amended to read:
13.27     Subdivision 1. Schools to provide information. As a basis for registration, schools
13.28 shall provide the office with such information as the office needs to determine the nature
 Sec. 22.  13
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
14.1  and activities of the school, including but not limited to the following which shall be
14.2  accompanied by an affidavit attesting to its accuracy and truthfulness:
14.3      (1) articles of incorporation, constitution, bylaws, or other operating documents;
14.4      (2) a duly adopted statement of the school's mission and goals;
14.5      (3) evidence of current school or program licenses granted by departments or agencies
14.6  of any state;
14.7      (4) compliance audits and audited financial statements that meet the requirements of
14.8  Code of Federal Regulations, title 34, section 668.23; United States Code, title 20, chapter
14.9  28, section 1094; Code of Federal Regulations, title 2, subpart A, part 200, subpart F, under
14.10 200.501 and 200.503; and United States Code, title 31, chapter 75, which shall be submitted
14.11 to the office on the same schedule stated under section 136A.675, subdivision 1a, paragraph
14.12 (a);
14.13     (5) all current promotional and recruitment materials and advertisements; and
14.14     (6) the current school catalog and, if not contained in the catalog:
14.15     (i) the members of the board of trustees or directors, if any;
14.16     (ii) the current institutional officers;
14.17     (iii) current full-time and part-time faculty with degrees held or applicable experience;
14.18     (iv) a description of all school facilities;
14.19     (v) a description of all current course offerings;
14.20     (vi) all requirements for satisfactory completion of courses, programs, and degrees;
14.21     (vii) the school's policy about freedom or limitation of expression and inquiry;
14.22     (viii) a current schedule of fees, charges for tuition, required supplies, student activities,
14.23 housing, and all other standard charges;
14.24     (ix) the school's policy about refunds and adjustments;
14.25     (x) the school's policy about granting credit for prior education, training, and experience;
14.26     (xi) the school's policies about student admission, evaluation, suspension, and dismissal;
14.27 and
14.28     (xii) the school's disclosure to students on the student complaint process under section
14.29 136A.672; and
 Sec. 22.  14
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
15.1      (7) enrollment data by academic term or calendar period following the submission
15.2  schedules in section 136A.675, subdivision 1a, paragraph (b).
15.3    Sec. 23. Minnesota Statutes 2024, section 136A.64, subdivision 5, is amended to read:
15.4      Subd. 5. Public information. All information submitted to the office is public information
15.5  except financial records, student complaint data, and accreditation records and reports.
15.6  Except for accreditation reports, The office may disclose any records or information
15.7  submitted to the office:
15.8      (1) to law enforcement officials; or
15.9      (2) in connection with a legal or administrative proceeding to:
15.10     (i) defend its decision to approve or disapprove granting of degrees or the use of a name;
15.11     (ii) defend its decision to revoke the institution's approval; or
15.12     (iii) enforce a requirement of law.
15.13   Sec. 24. Minnesota Statutes 2024, section 136A.65, subdivision 8, is amended to read:
15.14     Subd. 8. Disapproval of registration; appeal. (a) By giving written notice and reasons
15.15 to the school, the office may:
15.16     (1) revoke, suspend, or refuse to renew registration;
15.17     (2) refuse approval of a school's degree; and
15.18     (3) refuse approval of the use of a regulated term in its name.
15.19     (b) Reasons for revocation or suspension of registration or approval may be for one or
15.20 more of the following reasons:
15.21     (1) violating the provisions of sections 136A.61 to 136A.71;
15.22     (2) providing false, misleading, or incomplete information to the office;
15.23     (3) presenting information about the school which is false, fraudulent, misleading,
15.24 deceptive, or inaccurate in a material respect to students or prospective students;
15.25     (4) refusing to allow reasonable inspection or to supply reasonable information after a
15.26 written request by the office has been received;
15.27     (5) failing to have enrollment within the last two years at the school;
 Sec. 24.  15
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
16.1      (6) failing to have any enrollment within two years of a program's approval, except for
16.2  programs that require extensive approval processes by the United States Department of
16.3  Education, or the program's institutional or programmatic accreditor; or
16.4      (7) having been administratively determined by the commissioner or judicially determined
16.5  to have committed fraud or any other material violation of law involving federal, state, or
16.6  local government funds.
16.7      (c) Any order refusing, revoking, or suspending a school's registration, approval of a
16.8  school's degree, or use of a regulated term in the school's name is appealable in accordance
16.9  with chapter 14. The request must be in writing and made to the office within 30 days of
16.10 the date the school is notified of the action of the office. If a school has been operating and
16.11 its registration has been revoked, suspended, or refused by the office, the order is not effective
16.12 until the final determination of the appeal, unless immediate effect is ordered by the court.
16.13   Sec. 25. Minnesota Statutes 2024, section 136A.653, subdivision 1b, is amended to read:
16.14     Subd. 1b. Tribal colleges. A Tribal college is exempted from the provisions of sections
16.15 136A.61 to 136A.71. A Tribal college that is exempt may voluntarily waive its exception
16.16 exemption by registering under section 136A.63. Upon registration, the Tribal college is
16.17 subject to all applicable requirements of sections 136A.61 to 136A.71.
16.18   Sec. 26. Minnesota Statutes 2024, section 136A.653, subdivision 3a, is amended to read:
16.19     Subd. 3a. Tuition-free educational courses. A school course or program, including a
16.20 school course or program using an online platform service, offering training, courses, or
16.21 programs is exempt from sections 136A.61 to 136A.71, to the extent tuition, fees, and any
16.22 other charges for a student to participate do not exceed two percent of the most recent
16.23 average undergraduate tuition and required fees as of January 1 of the current year charged
16.24 for full-time students at all degree-granting institutions as published annually by the United
16.25 States Department of Education as of January 1 of each year. To qualify for an exemption,
16.26 a school or online platform service must prominently display a notice comparable to the
16.27 following: "IMPORTANT: Each educational institution makes its own decision regarding
16.28 whether to accept completed coursework for credit. Check with your university or college."
16.29   Sec. 27. Minnesota Statutes 2024, section 136A.672, subdivision 5, is amended to read:
16.30     Subd. 5. Appeals. Any order requiring remedial action by the school or assigning a
16.31 penalty under section 136A.705 is appealable in accordance with chapter 14. The request
16.32 for an appeal must be made in writing to the office within 30 days of the date the school is
 Sec. 27.  16
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
17.1  notified of the action of the office. The court shall award costs and reasonable attorney fees
17.2  in a contested chapter 14 hearing to the office if: (1) the office substantially prevails on the
17.3  merits in an action brought under this section; and (2) the school has a net income from
17.4  student tuition, fees, and other required institutional charges collected from the last fiscal
17.5  year of $1,000,000 or greater.
17.6    Sec. 28. Minnesota Statutes 2024, section 136A.675, subdivision 1, is amended to read:
17.7      Subdivision 1. Standard development and usage. (a) To screen and detect whether an
17.8  institution may not be financially or administratively responsible, the office shall develop
17.9  use financial and nonfinancial indicators. The development of financial and nonfinancial
17.10 indicators shall use industry standards as guidance.
17.11     (b) Annually, the office must provide a copy of the financial and nonfinancial indicators
17.12 to each registered institution and post a list of reviewed indicators on the office website.
17.13     (c) The office shall use regularly reported data submitted to the federal government or
17.14 other regulatory or accreditation agencies wherever possible.
17.15     (d) The office must use the indicators in this subdivision to identify institutions at
17.16 potential risk of being unable to meet the standards established under sections 136A.646;
17.17 136A.64, subdivision 3; 136A.65, subdivisions 1a and 4, paragraph (a), clauses (1), (2), (3),
17.18 and (7); and 136A.685 and thus unlikely to meet its financial obligations or complete its
17.19 academic terms for the next 18 months.
17.20   Sec. 29. Minnesota Statutes 2024, section 136A.675, is amended by adding a subdivision
17.21 to read:
17.22     Subd. 1a. Institutional reporting schedules for audits and enrollment data. (a) An
17.23 institution must submit to the office the required audit reports under section 136A.64,
17.24 subdivision 1, clause (4), by the earlier of 30 days after the issuance date of an audit or nine
17.25 months after the last day of the institution's fiscal year.
17.26     (b) An institution must submit to the office the enrollment data required under section
17.27 136A.64, subdivision 1, clause (7), using one of the two following schedules:
17.28     (1) a school with limited program start dates within its academic year shall provide the
17.29 office with a copy of the school's internal enrollment report for each academic term as soon
17.30 as it is released internally. The school may provide the report with no additional data or
17.31 required calculations; or
 Sec. 29.  17
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
18.1      (2) a school with multiple or rolling program start dates must provide enrollment data
18.2  to the office at least four times per year. Each school must determine four reporting dates
18.3  per year that would result in the most useful data being provided to the office and must
18.4  provide the office with the school's proposed enrollment reporting schedule.
18.5    Sec. 30. Minnesota Statutes 2025 Supplement, section 136A.69, subdivision 1, is amended
18.6  to read:
18.7      Subdivision 1. Registration fees. (a) The office shall collect reasonable registration fees
18.8  that are sufficient to recover, but do not exceed, its costs of administering the registration
18.9  program. The office shall charge the fees listed in paragraphs (b) to (d) and (c) for new
18.10 registrations.
18.11     (b) A new school must pay registration fees based on the institution's total full-time
18.12 equivalent enrollment in the following amounts:
18.13     (1) $5,000 for institutions with 2,500 or fewer full-time equivalent enrollment;
18.14     (2) $7,500 for institutions with 2,501 to 5,000 full-time equivalent enrollment;
18.15     (3) $10,000 for institutions with 5,001 to 7,500 full-time equivalent enrollment;
18.16     (4) $15,000 for institutions with 7,501 to 10,000 full-time equivalent enrollment; and
18.17     (5) $20,000 for institutions with 10,001 or greater full-time equivalent enrollment, and
18.18 for institutions with no data on the previous year's full-time equivalent enrollment.
18.19 Full-time equivalent enrollment is established using the previous year's full-time equivalent
18.20 enrollment as established in the United States Department of Education Integrated
18.21 Postsecondary Education Data System. If enrollment cannot be established using the United
18.22 States Department of Education Integrated Postsecondary Education Data System, the office
18.23 may establish an institution's full-time equivalent enrollment through verification of its
18.24 enrollment data submitted in accordance with section 136A.64, subdivision 1, clause (7).
18.25     (c) A new school must pay registration fees in an amount equal to the fee under paragraph
18.26 (b), plus fees for each nondegree program or degree as follows:
18.27 nondegree program  $250
18.28 degree program  $750
18.29     (d) In addition to the fees under paragraphs (b) and (c), a fee of $600 must be paid for
18.30 an initial application that: (1) has had four revisions, corrections, amendment requests, or
18.31 application reminders for the same application or registration requirement; or (2) cumulatively
18.32 has had six revisions, corrections, amendment requests, or application reminders for the
 Sec. 30.  18
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
19.1  same license application and the school seeks to continue with the application process with
19.2  additional application submissions. If this fee is paid, the school may submit two final
19.3  application submissions for review prior to application denial under section 136A.65,
19.4  subdivision 8. This provision excludes from its scope nonrepetitive questions or clarifications
19.5  initiated by the school before the submission of the application, initial interpretation questions
19.6  or inquiries from the office regarding a completed application, and initial requests from the
19.7  office for verification or validation of a completed application.
19.8      (e) (d) The annual renewal registration fee is based on an institution's total full-time
19.9  equivalent enrollment in the following amounts:
19.10     (1) $1,500 for institutions with 2,500 or fewer full-time equivalent enrollment;
19.11     (2) $3,000 for institutions with 2,501 to 5,000 full-time equivalent enrollment;
19.12     (3) $5,000 for institutions with 5,001 to 10,000 full-time equivalent enrollment; and
19.13     (4) $7,500 for institutions with 10,001 or greater full-time equivalent enrollment, and
19.14 for institutions with no data on the previous year's full-time equivalent enrollment.
19.15 Full-time equivalent enrollment is established using the previous year's full-time equivalent
19.16 enrollment as established in the United States Department of Education Integrated
19.17 Postsecondary Education Data System. If enrollment cannot be established using the United
19.18 States Department of Education Integrated Postsecondary Education Data System, the office
19.19 may establish an institution's full-time equivalent enrollment through verification of its
19.20 enrollment data submitted in accordance with section 136A.64, subdivision 1, clause (7).
19.21     (f) In addition to the fee under paragraph (e), a fee of $600 must be paid for a renewal
19.22 application that: (1) has had four revisions, corrections, amendment requests, or application
19.23 reminders for the same application or registration requirement; or (2) cumulatively has had
19.24 six revisions, corrections, amendment requests, or application reminders for the same license
19.25 application and the school seeks to continue with the application process with additional
19.26 application submissions. If this fee is paid, the school may submit two final application
19.27 submissions for review prior to application denial under section 136A.65, subdivision 8.
19.28 This provision excludes from its scope nonrepetitive questions or clarifications initiated by
19.29 the school before the submission of the application, initial interpretation questions or inquiries
19.30 from the office regarding a completed application, and initial requests from the office for
19.31 verification or validation of a completed application.
 Sec. 30.  19
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
20.1    Sec. 31. Minnesota Statutes 2025 Supplement, section 136A.82, subdivision 1, is amended
20.2  to read:
20.3      Subdivision 1. Policy. The legislature has found and hereby declares that the availability
20.4  of legitimate vocational programs offered by responsible nonprofit and for-profit private
20.5  career schools are in the best interests of the people of this state. The legislature has found
20.6  and declares that the state can provide assistance and protection for persons choosing
20.7  vocational programs by establishing policies and procedures to ensure the authenticity and
20.8  legitimacy of vocational programs offered by nonprofit and for-profit private career schools.
20.9  The legislature has found and declares that this same policy applies to any nonprofit and
20.10 for-profit private career schools located in another state or country that offers or makes
20.11 available to a Minnesota resident any vocational program which does not require leaving
20.12 the state for its completion.
20.13   Sec. 32. Minnesota Statutes 2025 Supplement, section 136A.821, subdivision 5, is amended
20.14 to read:
20.15     Subd. 5. Private career school. "Private career school" means a person who maintains
20.16 a physical presence for any program at less than an associate degree level. Except for those
20.17 required to obtain a license exclusively to participate in state financial aid or be listed on
20.18 the eligible training provider list, access WIOA funding, or receive the dual training grant,
20.19 private career school does not extend to:
20.20     (1) public postsecondary institutions with a physical presence in Minnesota;
20.21     (2) postsecondary institutions registered under sections 136A.61 to 136A.71;
20.22     (3) postsecondary institutions exempt from registration under section 136A.653,
20.23 subdivisions 1b, 2, 3, and 3a; 136A.657;, or 136A.658 due to the nature of the institution's
20.24 programs;
20.25     (4) schools persons, programs, or courses exclusively engaged in training physically or
20.26 mentally disabled persons;
20.27     (5) persons, programs, or courses taught to students in an apprenticeship program
20.28 registered by the United States Department of Labor or Minnesota Department of Labor
20.29 and taught by or required by a trade union in which students are not responsible for tuition,
20.30 fees, or any other charges, regardless of payment or reimbursement method;
20.31     (6) persons, programs, or courses contracted by persons or government agencies for the
20.32 training of their own employees for which no fee is charged to the employee, regardless of
20.33 whether that fee is reimbursed by the employer or a third party after the employee
 Sec. 32.  20
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
21.1  successfully completes the training, except for institutions or programs required to obtain
21.2  a limited license exclusively to receive the dual training grant;
21.3      (7) schools persons, programs, or courses with no physical presence in Minnesota engaged
21.4  exclusively in offering distance programs that are located in and approved by other states
21.5  or jurisdictions if the distance education program does not include internships, externships,
21.6  field placements, or clinical placements for residents of Minnesota;
21.7      (8) schools persons, programs, or courses licensed or approved by other state boards or
21.8  agencies authorized under Minnesota law to issue licenses for institutions or programs,
21.9  except for institutions or programs required to be licensed exclusively to participate in state
21.10 financial aid or be listed on the eligible training provider list, access WIOA funding, or
21.11 receive the dual training grant;
21.12     (9) review classes, courses, or persons, programs, or courses intended to prepare students
21.13 to sit for undergraduate, graduate, postgraduate, or occupational licensing, certification, or
21.14 entrance examinations;
21.15     (10) classes, courses, or persons, programs, or courses conducted by a bona fide trade,
21.16 professional, or fraternal organization, solely for that organization's membership and not
21.17 available to the public. In making the determination that the organization is bona fide, the
21.18 office may request the school provide three certified letters from persons that qualify as
21.19 evaluators under section 136A.828, subdivision 3, paragraph (l), that the organization is
21.20 recognized in Minnesota;
21.21     (11) persons, programs in the fine arts provided by organizations, or courses that are
21.22 exempt from taxation under section 290.05 and registered with the attorney general under
21.23 chapter 309. For purposes of this clause, "fine arts" means activities resulting in artistic
21.24 creation or artistic performance of works of the imagination which are engaged in for the
21.25 primary purpose of creative expression rather than commercial sale, vocational or career
21.26 advancement, or employment; or
21.27     (12) classes, courses, or persons, programs, or courses intended to fulfill the continuing
21.28 education requirements for a bona fide licensure or certification in a profession that have
21.29 been approved by a legislatively or judicially established board or agency responsible for
21.30 regulating the practice of the profession or by an industry-specific certification entity and
21.31 that are offered exclusively to individuals with the professional licensure or certification.
 Sec. 32.  21
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
22.1    Sec. 33. Minnesota Statutes 2024, section 136A.821, subdivision 13, is amended to read:
22.2      Subd. 13. Compliance audit. "Compliance audit" means an audit of a private career
22.3  school's compliance with federal requirements related to its participation in federal Title IV
22.4  student aid programs or other federal grant programs performed under either Uniform Grant
22.5  Guidance, including predecessor Federal Circular A-133, or the United States Department
22.6  of Education's audit guide, Audits of Federal Student Financial Assistance Programs at
22.7  Participating Institutions and Institution Servicers administration of federal money conducted
22.8  by a certified public accountant or federal auditor to determine if the school is adhering to
22.9  applicable laws, regulations, and other grant conditions as required by Code of Federal
22.10 Regulations, title 2, subtitle A, chapter II, part 200.
22.11   Sec. 34. Minnesota Statutes 2024, section 136A.821, subdivision 16, is amended to read:
22.12     Subd. 16. Audited Financial statements audit report. "Audited Financial statements
22.13 audit report" means the financial statements of an entity or higher-level entity that have
22.14 been examined by a certified public accountant or an equivalent government agency for
22.15 public entities that include (1) an auditor's report, a statement of financial position, an income
22.16 statement, a statement of cash flows, and notes to the financial statements or (2) the required
22.17 equivalents for public entities as determined by the Financial Accounting Standards Board,
22.18 the Governmental Accounting Standards Board, or the Securities and Exchange Commission
22.19 result of a service provided by a certified public accountant or federal auditor that conducts
22.20 a comprehensive and independent examination of the entity's financial statements as defined
22.21 in Code of Federal Regulations, title 34, section 668.23(d). If an entity's own financial
22.22 statements audit report is subsequently consolidated into a higher-level entity's financial
22.23 statements audit report, financial statements audit report can refer to both the entity's own
22.24 report and the higher-level entity's consolidated report in accordance with Code of Federal
22.25 Regulations, section 668.23(d)(2).
22.26   Sec. 35. Minnesota Statutes 2024, section 136A.821, subdivision 17, is amended to read:
22.27     Subd. 17. Review-level engagement Compilation report. "Review-level engagement"
22.28 means a service performed by a certified public accountant that provides limited assurance
22.29 that there are no material modifications that need to be made to an entity's financial statements
22.30 in order for them to conform to generally accepted accounting principles. Review-level
22.31 engagement provides fewer assurances than those reported under audited financial statements
22.32 "Compilation report" means the result of an accounting service provided by a certified public
22.33 accountant to organize financial information provided by a client into professionally
 Sec. 35.  22
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
23.1  formatted financial statements. A compilation report provides no assurances about the
23.2  financial statements, unlike those provided in a financial statements audit report.
23.3    Sec. 36. Minnesota Statutes 2025 Supplement, section 136A.821, subdivision 21, is
23.4  amended to read:
23.5      Subd. 21. Vocational Institution or school. "Vocational" means education or training
23.6  for skills used in the labor market "Institution" or "school" means a private career school
23.7  or distance education private career school, as defined in this section.
23.8    Sec. 37. Minnesota Statutes 2024, section 136A.822, subdivision 4, is amended to read:
23.9      Subd. 4. Application. Application for a license shall be on forms prepared and furnished
23.10 by the office, and shall include the following and other information as the office may require:
23.11     (1) the title or name of the private career school, ownership and controlling officers,
23.12 members, managing employees, and director;
23.13     (2) the specific programs which will be offered and the specific purposes of the
23.14 instruction;
23.15     (3) the place or places where the instruction will be given;
23.16     (4) a listing of the equipment available for instruction in each program;
23.17     (5) the maximum enrollment to be accommodated with equipment available in each
23.18 specified program;
23.19     (6) the qualifications of instructors and supervisors in each specified program;
23.20     (7) financial documents related to the entity's and higher-level entity's most recently
23.21 completed fiscal year:, including a federal income tax return and, in accordance with the
23.22 table below, one or more of the following: a financial statements audit report, compliance
23.23 audit report, or compilation report. An applicant with financial statements that are
23.24 consolidated into a higher-level entity's financial statements must include the consolidated
23.25 financials of the higher-level entity with the documents listed in each row of the table except
23.26 for the final row. If not stated in the financial statements audit report, compliance audit
23.27 report, or compilation report, the entity must include a statement providing the total gross
23.28 tuition and fee revenues associated with the programs and the total amount of institutional
23.29 discounts and aid provided to students in the programs.
23.30     (i) annual gross revenues from all sources;
 Sec. 37.  23
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
24.1      (ii) financial statements subjected to a review-level engagement or, if requested by the
24.2  office, audited financial statements;
24.3      (iii) a school's most recent compliance audit, if applicable; and
24.4      (iv) a current balance sheet, income statement, and adequate supporting documentation,
24.5  prepared and certified by an independent public accountant or CPA;
24.6  An entity or higher-level entity subject to fluctuating levels of total gross revenues must
24.7  continue to submit the required financial documents according to the requirements under
24.8  items (i) to (vi) even if the most current fiscal year's total gross revenues move the entity
24.9  or higher-level entity into a different category. If an entity or higher-level entity continues
24.10 to experience a change in total gross revenues for two consecutive fiscal years, the office
24.11 must notify the entity that the entity will be subject to the documentation requirements under
24.12 items (i) to (vi) for the next annual licensing application cycle. If, for the most recently
24.13 completed fiscal year, the applicant or renewal applicant:
24.14     (i) is required by federal or other external entities to have both a financial statements
24.15 audit and a compliance audit, the applicant must submit the financial statements audit report
24.16 and the compliance audit report, which may be combined in one document;
24.17     (ii) is required by federal or other external entities to have a financial statements audit,
24.18 but not a compliance audit, the applicant must submit the financial statements audit report;
24.19     (iii) is not required to have a financial statements audit, but elects to have one, the
24.20 applicant must submit the financial statements audit report;
24.21     (iv) does not fall into a prior category but had gross annual revenues from all sources
24.22 in the most recently completed fiscal year of $5,000,000 or more and the office requires the
24.23 applicant to have a financial statements audit, the applicant must submit the financial
24.24 statement audit report. If the applicant is a nonprofit entity, the applicant must also include
24.25 the completed Federal Form 990 tax return for the most recently completed fiscal year;
24.26     (v) does not fall into a prior category but had gross annual revenues from all sources in
24.27 the most recently completed fiscal year of $250,000 or more but less than $5,000,000 and
24.28 the office requires the applicant to have a compilation engagement, the applicant must
24.29 submit the compilation report, including footnotes for a debt repayment schedule and other
24.30 material items. If the applicant is a nonprofit entity, the applicant must also include the
24.31 completed Federal Form 990 tax return for the most recently completed fiscal year; or
24.32     (vi) does not fall into a prior category but had gross annual revenues from all sources
24.33 in the most recently completed fiscal year of less than $250,000, the applicant must submit
 Sec. 37.  24
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
25.1  (A) depending on the ownership or corporate organization, the applicant's federal income
25.2  tax return; and (B) if the net income flows through to the owners' personal federal tax returns,
25.3  a copy of each owner's personal federal tax return. In addition to the tax return information,
25.4  an applicant must provide a balance sheet dated as of the last day of the most recently ended
25.5  fiscal year;
25.6      (8) copies of all media advertising and promotional literature and brochures or electronic
25.7  display currently used or reasonably expected to be used by the private career school; and
25.8      (9) copies of all Minnesota enrollment agreement forms and contract forms and all
25.9  enrollment agreement forms and contract forms used in Minnesota; and.
25.10     (10) gross income earned in the preceding year from student tuition, fees, and other
25.11 required institutional charges.
25.12   Sec. 38. Minnesota Statutes 2025 Supplement, section 136A.822, subdivision 6, is amended
25.13 to read:
25.14     Subd. 6. Bond. (a) No license shall be issued to any private career school with a physical
25.15 presence within the state of Minnesota for any program, unless the applicant files with the
25.16 office a continuous corporate surety bond written by a company authorized to do business
25.17 in Minnesota conditioned upon the faithful performance of all contracts and agreements
25.18 with students made by the applicant.
25.19     (b) The amount of the surety bond shall be ten percent of the preceding year's net revenue
25.20 from student tuition, fees, and other required institutional charges collected, but in no event
25.21 less than $10,000, except that a private career school may must deposit a greater amount at
25.22 its own the office's discretion. A private career school in each annual application for licensure
25.23 must compute the amount of the surety bond and verify that the amount of the surety bond
25.24 complies with this subdivision. A private career school that operates at two or more locations
25.25 may combine net revenue from student tuition, fees, and other required institutional charges
25.26 collected for all locations for the purpose of determining the annual surety bond requirement.
25.27 The net revenue from tuition and fees used to determine the amount of the surety bond
25.28 required for a private career school having a license for the sole purpose of recruiting students
25.29 in Minnesota shall be only that paid to the private career school by the students recruited
25.30 from Minnesota. In the case of an entity applying for an initial license where the entity has
25.31 no history of revenues from student tuition, fees, or other required institutional charges, the
25.32 amount of the bond must be ten percent of the total amount of tuition, fees, and other required
25.33 institutional charges anticipated in the entity's first year of operation, based on a calculation
 Sec. 38.  25
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
26.1  of total student tuition, fees, and other required institutional charges multiplied by the
26.2  maximum student enrollment in one academic year.
26.3(c) The bond shall run to the state of Minnesota and to any person who may have a cause
26.4  of action against the applicant arising at any time after the bond is filed and before it is
26.5  canceled for breach of any contract or agreement made by the applicant with any student.
26.6  The aggregate liability of the surety for all breaches of the conditions of the bond shall not
26.7  exceed the principal sum deposited by the private career school under paragraph (b). The
26.8  surety of any bond may cancel it upon giving 60 days' notice in writing to the office and
26.9  shall be relieved of liability for any breach of condition occurring after the effective date
26.10 of cancellation.
26.11(d) In lieu of bond, the applicant may deposit with the commissioner of management
26.12 and budget a sum equal to the amount of the required surety bond in cash, an irrevocable
26.13 letter of credit issued by a financial institution equal to the amount of the required surety
26.14 bond, or securities as may be legally purchased by savings banks or for trust funds in an
26.15 aggregate market value equal to the amount of the required surety bond.
26.16(e) Failure of a private career school to post and maintain the required surety bond or
26.17 deposit under paragraph (d) may result in denial, suspension, or revocation of the school's
26.18 license.
26.19   Sec. 39. Minnesota Statutes 2025 Supplement, section 136A.822, subdivision 8, is amended
26.20 to read:
26.21Subd. 8. Minimum standards. A license shall be issued if the office first determines:
26.22(1) that the applicant has a sound financial condition with sufficient resources available
26.23 to:
26.24(i) meet the private career school's financial obligations;
26.25(ii) refund all tuition and other charges, within 60 days, in the event of dissolution of
26.26 the private career school or in the event of any justifiable claims for refund against the
26.27 private career school by the student body;
26.28(iii) provide adequate service to its students and prospective students; and
26.29(iv) maintain and support the private career school;
26.30(2) that the applicant has satisfactory facilities with sufficient tools and equipment and
26.31 the necessary number of work stations to prepare adequately the students currently enrolled,
26.32 and those proposed to be enrolled;
 Sec. 39.  26
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
27.1      (3) that the applicant employs a sufficient number of qualified teaching personnel to
27.2  provide the educational programs contemplated;
27.3      (4) that the private career school has an organizational framework with administrative
27.4  and instructional personnel to provide the programs and services it intends to offer;
27.5      (5) that the quality and content of each occupational course or program of study provides
27.6  education and adequate preparation to enrolled students for entry level positions in the
27.7  occupation for which prepared, based on minimum standards for employment in the field,
27.8  learning outcomes, assessment mechanisms, and clear structure of the curriculum;
27.9      (6) that the premises and conditions where the students work and study and the student
27.10 living quarters which are owned, maintained, recommended, or approved by the applicant
27.11 are sanitary, healthful, and safe, as evidenced by certificate of occupancy issued by the
27.12 municipality or county where the private career school is physically situated, a fire inspection
27.13 by the local or state fire marshal, or another verification deemed acceptable by the office;
27.14     (7) that the contract or enrollment agreement used by the private career school complies
27.15 with the provisions in section 136A.826;
27.16     (8) that contracts and agreements do not contain a wage assignment provision or a
27.17 confession of judgment clause;
27.18     (9) that there has been no adjudication of fraud or misrepresentation in any criminal,
27.19 civil, or administrative proceeding in any jurisdiction against the private career school or
27.20 its owner, officers, agents, or sponsoring organization;
27.21     (10) that the private career school or its owners, officers, agents, or sponsoring
27.22 organization has not had a license revoked under section 136A.829 or its equivalent in other
27.23 states or has closed the institution prior to all students, enrolled at the time of the closure,
27.24 completing their program within two years of the effective date of the revocation; and
27.25     (11) that the school includes a joint and several liability provision for torts and compliance
27.26 with the requirements of sections 136A.82 to 136A.834 in any contract effective after July
27.27 1, 2026, with any individual, entity, or postsecondary school located in another state for the
27.28 purpose of providing educational or training programs or awarding postsecondary credits
27.29 to Minnesota residents that may be applied to a program.
 Sec. 39.  27
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
28.1    Sec. 40. Minnesota Statutes 2024, section 136A.822, subdivision 10, is amended to read:
28.2      Subd. 10. Catalog, brochure, or electronic display. Before a license is issued to a
28.3  private career school, the private career school shall furnish to the office a catalog, brochure,
28.4  or electronic display including: all required information to students under section 136A.826.
28.5      (1) identifying data, such as volume number and date of publication;
28.6      (2) name and address of the private career school and its governing body and officials;
28.7      (3) a calendar of the private career school showing legal holidays, beginning and ending
28.8  dates of each course quarter, term, or semester, and other important dates;
28.9      (4) the private career school policy and regulations on enrollment including dates and
28.10 specific entrance requirements for each program;
28.11     (5) the private career school policy and regulations about leave, absences, class cuts,
28.12 make-up work, tardiness, and interruptions for unsatisfactory attendance;
28.13     (6) the private career school policy and regulations about standards of progress for the
28.14 student including the grading system of the private career school, the minimum grades
28.15 considered satisfactory, conditions for interruption for unsatisfactory grades or progress, a
28.16 description of any probationary period allowed by the private career school, and conditions
28.17 of reentrance for those dismissed for unsatisfactory progress;
28.18     (7) the private career school policy and regulations about student conduct and conditions
28.19 for dismissal for unsatisfactory conduct;
28.20     (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
28.21 activities, laboratory fees, service charges, rentals, deposits, and all other charges;
28.22     (9) the private career school policy and regulations, including an explanation of section
28.23 136A.827, about refunding tuition, fees, and other charges if the student does not enter the
28.24 program, withdraws from the program, or the program is discontinued;
28.25     (10) a description of the available facilities and equipment;
28.26     (11) a course outline syllabus for each course offered showing course objectives, subjects
28.27 or units in the course, type of work or skill to be learned, and approximate time, hours, or
28.28 credits to be spent on each subject or unit;
28.29     (12) the private career school policy and regulations about granting credit for previous
28.30 education and preparation;
 Sec. 40.  28
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
29.1      (13) a notice to students relating to the transferability of any credits earned at the private
29.2  career school to other institutions;
29.3      (14) a procedure for investigating and resolving student complaints;
29.4      (15) the name and address of the office; and
29.5      (16) the student complaint process and rights under section 136A.8295.
29.6      A private career school that is exclusively a distance education school is exempt from
29.7  clauses (3) and (5).
29.8    Sec. 41. Minnesota Statutes 2024, section 136A.822, subdivision 12, is amended to read:
29.9      Subd. 12. Permanent student records. (a) A private career school or a distance education
29.10 private career school licensed under sections 136A.82 to 136A.834 and located in Minnesota
29.11 shall maintain a permanent student record for each student for 50 years from the last date
29.12 of the student's attendance. A private career school licensed under this chapter and offering
29.13 distance instruction to a student located in Minnesota shall maintain a permanent record for
29.14 each Minnesota student for 50 years from the last date of the student's attendance The private
29.15 career school or distance education private career school may choose to reduce the amount
29.16 of time the school maintains a student record to no less than 20 years if the entity sends the
29.17 permanent student record to the office to hold for the remainder of the duration the student
29.18 records are required to be maintained. Records include school transcripts, documents, and
29.19 files containing student data about academic credits earned, courses completed, grades
29.20 awarded, degrees awarded, and periods of attendance.
29.21     (b) A private career school or distance education private career school licensed under
29.22 sections 136A.82 to 136A.834 and located in Minnesota shall maintain a permanent student
29.23 record required for professional licensure in Minnesota for each student for ten years from
29.24 the last date of the student's attendance or the number of years required by an institutional
29.25 or programmatic accreditor, whichever is greater. A private career school licensed under
29.26 this chapter and offering distance instruction to a student located in Minnesota shall maintain
29.27 records required for professional licensure in Minnesota that are not included in paragraph
29.28 (a) for each Minnesota student for ten years from the last date of the student's attendance
29.29 or the number of years required by an institutional or programmatic accreditor, whichever
29.30 is greater.
29.31     (c) To preserve permanent student records, a private career school shall submit a plan
29.32 that meets the following requirements:
29.33     (1) at least one copy of the records must be held in a secure, fireproof depository;
 Sec. 41.  29
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
30.1      (2) an appropriate official must be designated to provide a student with copies of records
30.2  or a transcript upon request; and
30.3      (3) an alternative method, approved by the office, of complying with clauses (1) and (2)
30.4  must be established if the private career school ceases to exist; and
30.5      (4) (2) a continuous surety bond or irrevocable letter of credit issued by a financial
30.6  institution must be filed with the office in an amount not to exceed $20,000 if the private
30.7  career school has no binding agreement approved by the office, for preserving student
30.8  records. The bond or irrevocable letter of credit shall run to the state of Minnesota. In the
30.9  event of a school closure, the surety bond or irrevocable letter of credit must be used by the
30.10 office to retrieve, recover, maintain, digitize, and destroy academic records.
30.11   Sec. 42. Minnesota Statutes 2025 Supplement, section 136A.822, subdivision 13, is
30.12 amended to read:
30.13     Subd. 13. Limited license. (a) Unless otherwise exempt under sections 136A.82 to
30.14 136A.834:
30.15     (1) a private career school licensed by another state agency or board must be required
30.16 to obtain a limited license to participate in state financial aid; and
30.17     (2) a private career school exclusively seeking to be listed on the eligible training provider
30.18 list, access WIOA funding, or receive the dual training grant shall be required to obtain a
30.19 limited license.
30.20     (b) A private career school seeking a limited license under this subdivision shall be
30.21 required to satisfy only the requirements of subdivisions 4, clauses (1), (2), and (3), (7), (8),
30.22 (9), and (10); 5; 8, clauses (1), (4), (7), (8), (9), and (10); 9; 10; 11; and 12. If requested by
30.23 the office, a private career school seeking a limited license under this subdivision must
30.24 satisfy the requirements of subdivisions 4, clauses (7), (8), (9), and (10); 8, clauses (4), (7),
30.25 and (8); 9; 10; and 11. If a private career school is licensed to participate in state financial
30.26 aid under this chapter, the private career school must follow the refund policy in section
30.27 136A.827, even if that section conflicts with the refund policy of the licensing agency or
30.28 board. A distance education private career school located in another state, or a distance
30.29 education private career school licensed to recruit Minnesota residents for attendance at a
30.30 distance education private career school outside of this state, or a distance education private
30.31 career school licensed by another state agency as its primary licensing body, may continue
30.32 to use the distance education private career school's name as permitted by its home state or
30.33 its primary licensing body.
 Sec. 42.  30
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
31.1    Sec. 43. Minnesota Statutes 2024, section 136A.822, is amended by adding a subdivision
31.2  to read:
31.3      Subd. 14. Data privacy. (a) Financial records submitted by private career schools are
31.4  nonpublic data, as defined in section 13.02, subdivision 9.
31.5      (b) Accreditation records and reports submitted by private career schools are nonpublic
31.6  data, as defined in section 13.02, subdivision 9.
31.7      (c) The office may disclose data that is classified as not public data under this subdivision
31.8  for the purpose of defending the office's decision to approve or not approve a program or
31.9  institution, or take any other action under sections 136A.82 to 136A.833, in connection with
31.10 a legal or administrative proceeding, or pursuant to a subpoena or judicial warrant.
31.11   Sec. 44. Minnesota Statutes 2024, section 136A.823, subdivision 1, is amended to read:
31.12     Subdivision 1. Application. (a) Application for renewal of a license must be made at
31.13 least 60 days, other than the exception in paragraph (b), before expiration of the current
31.14 license on a form provided by the office. A renewal application shall be accompanied by a
31.15 nonrefundable fee as provided in section 136A.824 that is sufficient to recover, but does
31.16 not exceed, the administrative costs of the office.
31.17     (b) The financial documents listed in section 136A.822, subdivision 4, clause (7), required
31.18 to be submitted to the office as part of a renewal application, shall be submitted according
31.19 to the following schedule:
31.20     (1) the financial statements audit reports, compliance audit reports, and compilation
31.21 reports, by the earlier of 30 days after the issuance date of each report or nine months after
31.22 the last day of the entity's or higher-level entity's fiscal year; or
31.23     (2) for federal tax returns and stand-alone balance sheets, by the earlier of 30 days after
31.24 the federal tax return is completed or one week following the last day of a federal filing
31.25 extension period that is usually six months in length.
31.26   Sec. 45. Minnesota Statutes 2024, section 136A.823, subdivision 3, is amended to read:
31.27     Subd. 3. Change of ownership. Within 30 days of a change of ownership, a school must
31.28 submit a registration renewal application, the information and materials for an initial
31.29 registration under section 136A.822, subdivision 4, and the applicable registration fees for
31.30 a new institution under section 136A.824, subdivision 1. For purposes of this subdivision,
31.31 "change of ownership" means: a merger or consolidation with a corporation separate entity
31.32 or higher-level entity; a sale, lease, exchange, or other disposition of all or substantially all
 Sec. 45.  31
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
32.1  of the assets of a school; the transfer of a controlling interest of at least 51 percent of the
32.2  school's stock; entering into receivership; or a change in the nonprofit or for-profit status
32.3  of a school.
32.4    Sec. 46. Minnesota Statutes 2025 Supplement, section 136A.824, subdivision 1, is amended
32.5  to read:
32.6      Subdivision 1. Initial licensure fee. (a) The office processing fee for an initial licensure
32.7  application is:
32.8      (1) $3,730 for a private career school that will offer no more than one program during
32.9  its first year of operation;
32.10     (2) $1,500 for a private career school licensed by another state agency and seeking a
32.11 limited license exclusively in order to participate in state financial aid; and
32.12     (3) $3,730, plus $500 for each additional program offered by the private career school,
32.13 for a private career school during its first year of licensed operation.
32.14     (b) In addition to the fee under paragraph (a), a fee of $600 must be paid for an initial
32.15 application that: (1) has had four revisions, corrections, amendment requests, or application
32.16 reminders for the same application or licensure requirement; or (2) cumulatively has had
32.17 six revisions, corrections, amendment requests, or application reminders for the same license
32.18 application and the private career school seeks to continue with the application process with
32.19 additional application submissions. If this fee is paid, the private career school may submit
32.20 two final application submissions for review prior to application denial under section
32.21 136A.829, subdivision 1, clause (2). This provision excludes from its scope nonrepetitive
32.22 questions or clarifications initiated by the school before the submission of the application,
32.23 initial interpretation questions or inquiries from the office regarding a completed application,
32.24 and initial requests from the office for verification or validation of a completed application.
32.25   Sec. 47. Minnesota Statutes 2025 Supplement, section 136A.824, subdivision 2, is amended
32.26 to read:
32.27     Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a renewal
32.28 licensure application is:
32.29     (1) for a private career school, the license renewal fee is $3,160; and
32.30     (2) for a private career school licensed by another state agency and that also has a limited
32.31 license with the office exclusively in order to participate in state financial aid, the license
32.32 renewal fee is $1,500.
 Sec. 47.  32
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
33.1      (b) If a license renewal application is not received by the office by the expiration of the
33.2  current license, a late fee of $100 per business day, not to exceed $3,000, shall be assessed.
33.3      (c) In addition to the fee under paragraph (a), a fee of $600 must be paid for a renewal
33.4  application that: (1) has had four revisions, corrections, amendment requests, or application
33.5  reminders for the same application or licensure requirement; or (2) cumulatively has had
33.6  six revisions, corrections, amendment requests, or application reminders for the same license
33.7  application and the private career school seeks to continue with the application process with
33.8  additional application submissions. If this fee is paid, the private career school may submit
33.9  two final application submissions for review prior to application denial under section
33.10 136A.829, subdivision 1, clause (2). This provision excludes from its scope nonrepetitive
33.11 questions or clarifications initiated by the school before the submission of the application,
33.12 initial interpretation questions or inquiries from the office regarding a completed application,
33.13 and initial requests from the office for verification or validation of a completed application.
33.14   Sec. 48. Minnesota Statutes 2024, section 136A.826, subdivision 1, is amended to read:
33.15     Subdivision 1. Catalog, brochure, or electronic display. (a) A private career school
33.16 or its agent must provide the catalog, brochure, or electronic display required in this section
33.17 136A.822, subdivision 10, to a prospective student in a time or manner that gives the
33.18 prospective student at least five days to read the catalog, brochure, or electronic display
33.19 before signing a contract or enrollment agreement or before being accepted by a private
33.20 career school that does not use a written contract or enrollment agreement.
33.21     (b) A catalog, brochure, or electronic display must include, at a minimum:
33.22     (1) identifying data, such as volume number or date of publication;
33.23     (2) name, address, governing body, and names of senior officials;
33.24     (3) an academic calendar showing legal holidays, beginning and ending dates of each
33.25 course quarter, term, or semester, and other important dates;
33.26     (4) the policy and regulations on enrollment including dates and specific entrance
33.27 requirements for each program;
33.28     (5) the policy and regulations regarding leave, absences, class cuts, make-up work,
33.29 tardiness, and interruptions for unsatisfactory attendance;
33.30     (6) the policy and regulations regarding standards of progress for the student including
33.31 the grading system of the private career school, the minimum grades considered satisfactory,
33.32 conditions for interruption for unsatisfactory grades or progress, a description of any
 Sec. 48.  33
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
34.1  probationary period allowed by the private career school, and conditions of reentrance for
34.2  those dismissed for unsatisfactory progress;
34.3      (7) the policy and regulations regarding student conduct and conditions for dismissal
34.4  for unsatisfactory conduct;
34.5      (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
34.6  activities, laboratory fees, service charges, rentals, deposits, and all other charges;
34.7      (9) the policy and regulations, including an explanation of section 136A.827, regarding
34.8  refunding tuition, fees, and other charges if the student does not enter the program, withdraws
34.9  from the program, or the program is discontinued;
34.10     (10) a description of the available facilities and equipment;
34.11     (11) a course outline or syllabus for each course offered showing course objectives,
34.12 subjects or units in the course, type of work or skill to be learned, and approximate time,
34.13 hours, or credits to be spent on each subject or unit;
34.14     (12) the policy and regulations regarding granting credit for previous education and
34.15 preparation;
34.16     (13) a notice to students relating to the transferability of any credits earned; or
34.17     (14) a procedure for investigating and resolving student complaints and the rights of the
34.18 student under section 136A.8295.
34.19   Sec. 49. Minnesota Statutes 2024, section 136A.827, subdivision 1, is amended to read:
34.20     Subdivision 1. Student. For the purposes of this section, "student" means the party to
34.21 the contract, whether the party is the student, the student's parent or guardian, or other person
34.22 on behalf of the student. If there is no contract, student means the party who has been
34.23 accepted into the course or program.
34.24   Sec. 50. Minnesota Statutes 2024, section 136A.827, subdivision 4, is amended to read:
34.25     Subd. 4. Proration. (a) When a student has been accepted by a private career school
34.26 and gives notice of cancellation after the program of instruction has begun, the student is
34.27 entitled to a refund if, at the last documented date of attendance, the student has not completed
34.28 at least 75 percent of the entire program of instruction. For purposes of this subdivision,
34.29 program of instruction is calculated under paragraph (c) or (d). Program of instruction does
34.30 not mean one term, a payment period, a module, or any other portion of the entire
34.31 instructional program.
 Sec. 50.  34
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
35.1      (b) A notice of cancellation from a student under this subdivision must be confirmed in
35.2  writing by the private career school and mailed to the student's last known address. The
35.3  confirmation from the school must state that the school has withdrawn the student from
35.4  enrollment, and if this action was not the student's intent, the student must contact the school.
35.5      (c) The length of a program of instruction for a program that has a defined calendar start
35.6  and end date that does not change after the program has begun equals the number of days
35.7  from the first scheduled date of the program through the last scheduled date of the program.
35.8  To calculate the completion percentage, divide the number of calendar days from the first
35.9  date of the program through the student's last documented date of attendance by the length
35.10 of the program of instruction, and truncate the result after the second digit following the
35.11 decimal point. If the completion percentage is less than 75 percent, the private career school
35.12 may retain:
35.13     (1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied
35.14 by the completion percentage; plus
35.15     (2) the initial program application fees, not to exceed $50; plus
35.16     (3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.
35.17     (d) The length of a program of instruction for a program that is measured in clock hours
35.18 equals the number of clock hours the student was scheduled to attend. To calculate the
35.19 completion percentage, divide the number of clock hours that the student actually attended
35.20 by the length of the program of instruction, and truncate the result after the second digit
35.21 following the decimal point. If the completion percentage is less than 75 percent, the private
35.22 career school may retain:
35.23     (1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied
35.24 by the completion percentage; plus
35.25     (2) the initial program application fees, not to exceed $50; plus
35.26     (3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.
35.27   Sec. 51. Minnesota Statutes 2024, section 136A.828, subdivision 6, is amended to read:
35.28     Subd. 6. Financial aid payments Transcripts. (a) All private career schools must
35.29 collect, assess, and distribute funds received from loans or other financial aid as provided
35.30 in this subdivision.
35.31     (b) Student loans or other financial aid funds received from federal, state, or local
35.32 governments or administered in accordance with federal student financial assistance programs
 Sec. 51.  35
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
36.1  under title IV of the Higher Education Act of 1965, as amended, United States Code, title
36.2  20, chapter 28, must be collected and applied as provided by applicable federal, state, or
36.3  local law or regulation.
36.4(c) Student loans or other financial aid assistance received from a bank, finance or credit
36.5  card company, or other private lender must be collected or disbursed as provided in
36.6  paragraphs (d) and (e).
36.7(d) Loans or other financial aid payments for amounts greater than $3,000 must be
36.8  disbursed:
36.9(1) in two equal disbursements, if the term length is more than four months. The loan
36.10 or payment amounts may be disbursed no earlier than the first day the student attends class
36.11 with the remainder to be disbursed halfway through the term; or
36.12(2) in three equal disbursements, if the term length is more than six months. The loan
36.13 or payment amounts may be disbursed no earlier than the first day the student attends class,
36.14 one-third of the way through the term, and two-thirds of the way through the term.
36.15(e) Loans or other financial aid payments for amounts less than $3,000 may be disbursed
36.16 as a single disbursement on the first day a student attends class, regardless of term length.
36.17(f) No private career school may enter into a contract or agreement with, or receive any
36.18 money from, a bank, finance or credit card company, or other private lender, unless the
36.19 private lender follows the requirements for disbursements provided in paragraphs (d) and
36.20 (e).
36.21(g) No private career school may withhold an official transcript for arrears or default on
36.22 any loan made by the private career school to a student if the loan qualifies as an institutional
36.23 loan under United States Code, title 11, section 523(a)(8)(b).
36.24   Sec. 52. Minnesota Statutes 2024, section 136A.829, subdivision 1, is amended to read:
36.25Subdivision 1. Grounds. The office may, after notice and upon providing an opportunity
36.26 for a hearing, under chapter 14 if requested by the parties adversely affected, refuse to issue,
36.27 refuse to renew, revoke, or suspend a license or solicitor's permit for any of the following
36.28 grounds:
36.29(1) violation of any provisions of sections 136A.821 to 136A.833 or any rule adopted
36.30 by the office;
36.31(2) furnishing to the office false, misleading, or incomplete information;
 Sec. 52.  36
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
37.1      (3) presenting to prospective students information relating to the private career school
37.2  that is false, fraudulent, deceptive, substantially inaccurate, or misleading;
37.3      (4) refusal to allow reasonable inspection or supply reasonable information after written
37.4  request by the office;
37.5      (5) having been administratively determined by the commissioner or judicially determined
37.6  to have committed fraud or any other material violation of law involving federal, state, or
37.7  local government funds;
37.8      (6) the existence of any circumstance that would be grounds for the refusal of an initial
37.9  or renewal license under section 136A.822; or
37.10     (7) using fraudulent or coercive practices, whether in the course of business in this state
37.11 or elsewhere.
37.12   Sec. 53. Minnesota Statutes 2024, section 136A.829, subdivision 3, as amended by Laws
37.13 2026, chapter 88, article 1, section 40, is amended to read:
37.14     Subd. 3. Powers and duties. The office shall have (in addition to the powers and duties
37.15 now vested therein by law) the following powers and duties:
37.16     (a) To negotiate and enter into interstate reciprocity agreements with similar agencies
37.17 in other states, if in the judgment of the office such agreements are or will be helpful in
37.18 effectuating the purposes of Laws 1973, chapter 714;
37.19     (b) To grant conditional private career school license for periods of less than one year
37.20 if in the judgment of the office correctable deficiencies exist at the time of application and
37.21 when refusal to issue private career school license would adversely affect currently enrolled
37.22 students; the risk of harm to students can be minimized through the use of restrictions and
37.23 requirements as conditions of the license. Conditional licenses may include requirements
37.24 and restrictions for:
37.25     (1) periodic monitoring and submission of reports on the school's deficiencies to ascertain
37.26 whether compliance improves;
37.27     (2) periodic collaborative consultations with the school on noncompliance with sections
37.28 136A.82 to 136A.834 or how the institution is managing compliance;
37.29     (3) the submission of contingency plans such as teach-out plans or transfer pathways
37.30 for students;
 Sec. 53.  37
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
38.1      (4) a prohibition from accepting tuition and fee payments prior to the add-drop period
38.2  of the current period of instruction or before the funding has been earned by the school
38.3  according to the refund requirements of section 136A.827;
38.4      (5) a prohibition from enrolling new students;
38.5      (6) enrollment caps;
38.6      (7) the initiation of alternative processes and communications with students enrolled at
38.7  the school to notify students of deficiencies or probation status;
38.8      (8) the submission of a surety under section 136A.822, subdivision 6, paragraph (b),
38.9  that exceeds ten percent of the preceding year's net revenue from student tuition, fees, and
38.10 other required institutional charges collected; or
38.11     (9) submission of closure information under section 136A.8225;
38.12     (c) The office may upon its own motion, and shall upon the verified complaint in writing
38.13 of any person setting forth fact which, if proved, would constitute grounds for refusal or
38.14 revocation under Laws 1973, chapter 714, investigate the actions of any applicant or any
38.15 person or persons holding or claiming to hold a license or permit. However, before proceeding
38.16 to a hearing on the question of whether a license or permit shall be refused, revoked or
38.17 suspended for any cause enumerated in subdivision 1, the office shall grant a reasonable
38.18 time to the holder of or applicant for a license or permit to correct the situation. If within
38.19 such time the situation is corrected and the private career school is in compliance with the
38.20 provisions of sections 136A.82 to 136A.834, no further action leading to refusal, revocation,
38.21 or suspension shall be taken.
38.22     (d) To grant a private career school a probationary license for periods of less than three
38.23 years if, in the judgment of the office, correctable deficiencies exist at the time of application
38.24 that need more than one year to correct and when the risk of harm to students can be
38.25 minimized through the use of restrictions and requirements as conditions of the license.
38.26 Probationary licenses may include requirements and restrictions for:
38.27     (1) periodic monitoring and submission of reports on the school's deficiencies to ascertain
38.28 whether compliance improves;
38.29     (2) periodic collaborative consultations with the school on noncompliance with sections
38.30 136A.82 to 136A.834 or how the institution is managing compliance;
38.31     (3) the submission of contingency plans such as teach-out plans or transfer pathways
38.32 for students;
 Sec. 53.  38
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
39.1      (4) a prohibition from accepting tuition and fee payments prior to the add/drop period
39.2  of the current period of instruction or before the funds have been earned by the school
39.3  according to the refund requirements of section 136A.827;
39.4      (5) a prohibition from enrolling new students;
39.5      (6) enrollment caps;
39.6      (7) the initiation of alternative processes and communications with students enrolled at
39.7  the school to notify students of deficiencies or probation status;
39.8      (8) the submission of a surety under section 136A.822, subdivision 6, paragraph (b),
39.9  that exceeds ten percent of the preceding year's net revenue from student tuition, fees, and
39.10 other required institutional charges collected; or
39.11     (9) submission of closure information under section 136A.8225.
39.12   Sec. 54. Minnesota Statutes 2024, section 136A.8295, subdivision 5, is amended to read:
39.13     Subd. 5. Appeals. Any order requiring remedial action by the school or assigning a
39.14 penalty under section 136A.832 is appealable in accordance with chapter 14. The request
39.15 for an appeal must be made in writing to the office within 30 days of the date the school is
39.16 notified of the action of the office. The court shall award costs and reasonable attorney fees
39.17 in a contested chapter 14 hearing to the office if: (1) the office substantially prevails on the
39.18 merits in an action brought under this section; and (2) the school has a net income from
39.19 student tuition, fees, and other required institutional charges collected from the last fiscal
39.20 year of $1,000,000 or greater.
39.21   Sec. 55. Minnesota Statutes 2024, section 136A.83, is amended to read:
39.22     136A.83 INSPECTION.
39.23     (a) The office or a delegate may inspect the instructional books and records, classrooms,
39.24 dormitories, tools, equipment and classes of any private career school or applicant for license
39.25 at any reasonable time. The office may require the submission of audited financial statements.
39.26 The office or a delegate may inspect the financial books and records of the private career
39.27 school. In no event shall such financial information be used by the office to regulate or set
39.28 the tuition or fees charged by the private career school.
39.29     (b) Data obtained from an inspection of the financial records of a private career school
39.30 or submitted to the office as part of a license application or renewal are nonpublic data as
39.31 defined in section 13.02, subdivision 9. Data obtained from inspections may be disclosed
 Sec. 55.  39
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
40.1  to other members of the office, to law enforcement officials, or in connection with a legal
40.2  or administrative proceeding commenced to enforce a requirement of law.
40.3    Sec. 56. Minnesota Statutes 2025 Supplement, section 136A.833, subdivision 1, is amended
40.4  to read:
40.5      Subdivision 1. Application for exemptions. (a) A school that seeks an exemption from
40.6  the provisions of sections 136A.822 to 136A.834 for the school and all of its programs or
40.7  some of its programs must apply to the office to establish that the school or program meets
40.8  the requirements of an exemption. An exemption for the school or program expires two
40.9  years from the date of approval or when a school adds a new program or makes a
40.10 modification equal to or greater than 25 percent to an existing educational program that
40.11 brings the school or program outside the scope of the school's or program's exemption. If
40.12 a school is reapplying for an exemption, the application must be submitted to the office 90
40.13 days before the current exemption expires. If a school fails to apply within 90 days of
40.14 expiration or any change that would bring the school or program outside the scope of the
40.15 school's or program's exemption, the school is subject to fees and penalties under sections
40.16 136A.831 and 136A.832. This exemption shall not extend to any school that uses any
40.17 publication or advertisement that is not truthful and gives any false, fraudulent, deceptive,
40.18 inaccurate, or misleading impressions about the school or its personnel, programs, services,
40.19 or occupational opportunities for its graduates for promotion and student recruitment.
40.20 Exemptions denied under this section are subject to appeal under section 136A.829. If an
40.21 appeal is initiated, the denial of the exemption is not effective until the final determination
40.22 of the appeal, unless immediate effect is ordered by the court.
40.23     (b) A school that meets any of the exemptions in this section and exclusively seeks to
40.24 be listed on the eligible training provider list, access WIOA funding, or receive the dual
40.25 training grant, is exempt from sections 136A.822 to 136A.834, except the school must
40.26 satisfy the requirements of section 136A.822, subdivisions 4, clauses (1), (2), and (3); 8,
40.27 clauses (9) and (10); 10, clause (8); and 12.
40.28   Sec. 57. Minnesota Statutes 2025 Supplement, section 136A.833, subdivision 2, is amended
40.29 to read:
40.30     Subd. 2. Exemption reasons. Sections 136A.821 to 136A.832 shall not apply to the
40.31 following:
40.32     (1) private career schools engaged exclusively in the teaching of avocational programs
40.33 that are engaged primarily for personal development, recreation, or remedial education, and
 Sec. 57.  40
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
41.1  are not generally intended for vocational or career advancement, including adult basic
41.2  education, exercise or fitness teacher programs, modeling, or acting, as determined by the
41.3  office;
41.4      (2) classes, courses, or programs providing 40 or fewer clock hours of instruction; and
41.5      (3) (2) private career schools providing training, instructional programs, or courses where
41.6  tuition, fees, and any other charges for a student to participate do not exceed $500.
41.7    Sec. 58. Minnesota Statutes 2024, section 136G.03, subdivision 30, is amended to read:
41.8      Subd. 30. Qualified higher education expenses. "Qualified higher education expenses"
41.9  means expenses as defined in section sections 529(c)(7), (8), and (9); 529(e)(3); and 529(f)
41.10 of the Internal Revenue Code.
41.11   Sec. 59. Minnesota Statutes 2024, section 136G.03, subdivision 31, is amended to read:
41.12     Subd. 31. Qualified rollover distribution. "Qualified rollover distribution" means a
41.13 distribution that qualifies as a rollover under section 529(c)(3)(C) and (E) of the Internal
41.14 Revenue Code.
41.15   Sec. 60. Minnesota Statutes 2024, section 136G.03, is amended by adding a subdivision
41.16 to read:
41.17     Subd. 35. Uncashed distribution check. "Uncashed distribution check" means any
41.18 distribution check generated by an account owner's request regardless of the payee that
41.19 remains uncashed by the payee for at least 180 days.
41.20   Sec. 61. Minnesota Statutes 2024, section 136G.05, subdivision 10, is amended to read:
41.21     Subd. 10. Data. Account owner data, account data, and data on beneficiaries of accounts
41.22 are private data on individuals or nonpublic data as defined in section 13.02, except that the
41.23 names and addresses of the beneficiaries of accounts that receive matching grants are public.
41.24 The office may use data received under this chapter to share information with account
41.25 owners about the office's other programs and resources including those that describe the
41.26 process to pay for postsecondary education.
41.27   Sec. 62. Minnesota Statutes 2024, section 136G.13, is amended by adding a subdivision
41.28 to read:
41.29     Subd. 6. Handling of uncashed distribution checks. Unless otherwise directed by the
41.30 office, the plan administrator must mark an uncashed distribution check as no longer
 Sec. 62.  41
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
42.1  outstanding and must credit back the amount of the check to the account owner's account
42.2  from which the check was originally disbursed. The amount being credited must be accounted
42.3  for as a new contribution and be invested by the plan administrator according to the current
42.4  instructions on file from the account owner.
42.5    Sec. 63. Minnesota Statutes 2024, section 137.39, is amended by adding a subdivision to
42.6  read:
42.7      Subd. 2a. Reporting. By February 15 of each odd-numbered year, the Board of Regents
42.8  of the University of Minnesota is requested to submit a report on medical school curriculum
42.9  to the chairs and ranking minority members of the legislative committees with jurisdiction
42.10 over higher education. At a minimum, the report must include information regarding for-profit
42.11 entity funds used to:
42.12     (1) pay salaries of teaching faculty;
42.13     (2) support new or existing courses offered by the medical school; and
42.14     (3) support initiatives of the medical school.
42.15   Sec. 64. Minnesota Statutes 2024, section 268.193, subdivision 2, is amended to read:
42.16     Subd. 2. Unemployment insurance aid. Eligible postsecondary institutions are eligible
42.17 to receive unemployment insurance aid under this section. For each fiscal year, an eligible
42.18 entity's aid is the difference between fiscal year 2022's unemployment insurance costs and
42.19 the current year's unemployment insurance costs, as reflected in the unemployment insurance
42.20 employer accounts maintained by the state. If the total eligible unemployment insurance
42.21 aid for a fiscal year is greater than the annual appropriation for that year, the Board of
42.22 Trustees of the Minnesota State Colleges and Universities or the commissioner of the Office
42.23 of Higher Education, as applicable, must proportionately reduce the aid payment to each
42.24 eligible entity.
42.25   Sec. 65. Laws 2025, First Special Session chapter 5, article 1, section 3, subdivision 1, is
42.26 amended to read:
42.27878,550,000
42.28 Subdivision 1. Total Appropriation  $    879,039,000 $      881,555,000
42.29 The amounts that may be spent for each
42.30 purpose are specified in the following
42.31 subdivisions.
 Sec. 65.  42
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
43.1    Sec. 66. Laws 2025, First Special Session chapter 5, article 1, section 3, subdivision 3, is
43.2  amended to read:
43.3830,384,000
43.4  Subd. 3. Operations and Maintenance  830,873,000  833,389,000
43.5  (a) $5,700,000 in fiscal year 2026 and
43.6  $5,700,000 in fiscal year 2027 are to provide
43.7  supplemental aid for operations and
43.8  maintenance to the president of each two-year
43.9  institution in the system with at least one
43.10 campus that is not located in a metropolitan
43.11 county, as defined in Minnesota Statutes,
43.12 section 473.121, subdivision 4. The board
43.13 shall transfer at least $158,000 for each
43.14 campus not located in a metropolitan county
43.15 in each year to the president of each institution
43.16 that includes such a campus.
43.17 (b) The Board of Trustees is requested to help
43.18 Minnesota close the attainment gap by funding
43.19 activities which improve retention and
43.20 completion for students of color.
43.21 (c) $9,500,000 in fiscal year 2026 and
43.22 $9,500,000 in fiscal year 2027 are for
43.23 enterprise-wide technology, including
43.24 upgrading the Integrated Statewide Record
43.25 System and maintaining enterprise-wide
43.26 technology services.
43.27 (d) $50,000 in fiscal year 2026 and $50,000
43.28 in fiscal year 2027 are to reduce students'
43.29 out-of-pocket costs by expanding free
43.30 offerings in course materials and resources,
43.31 including through open educational resources,
43.32 open textbooks, and implementation of
43.33 Z-Degrees under Minnesota Statutes, section
43.34 136F.305.
 Sec. 66.  43
 HF4252 FOURTH ENGROSSMENT  REVISOR   TW   H4252-4
44.1  (e) $3,158,000 in fiscal year 2026 and
44.2  $3,158,000 in fiscal year 2027 are to expand
44.3  student support services. This appropriation
44.4  provides funding to campuses to address basic
44.5  needs insecurity, mental health, and other
44.6  high-need student support services by
44.7  increasing the amount of available resources
44.8  to students. In addition, this funding provides
44.9  systemwide resources and coordination,
44.10 including electronic connections for peer
44.11 support and professional clinical support for
44.12 mental health. These systemwide resources
44.13 must be available online 24 hours a day, seven
44.14 days a week.
44.15 (f) $883,000 in fiscal year 2026 and $894,000
44.16 in fiscal year 2027 are for costs associated
44.17 with the increased employer contribution rates
44.18 for the higher education individual retirement
44.19 account plan under Minnesota Statutes, section
44.20 354B.23, subdivision 3.
44.21 (g) $282,000 in fiscal year 2026 and $282,000
44.22 in fiscal year 2027 are to pay the cost of
44.23 supplies and equipment necessary to provide
44.24 access to menstrual products under Minnesota
44.25 Statutes, section 135A.1365.
44.26 (h) $809,000 in fiscal year 2026 and $809,000
44.27 in fiscal year 2027 are for unemployment
44.28 insurance aid under Minnesota Statutes,
44.29 section 268.193, to institutions within the
44.30 system.
44.31 (i) $500,000 in fiscal year 2026 and $500,000
44.32 in fiscal year 2027 are for the Juvenile
44.33 Detention Alternatives Initiative at
44.34 Metropolitan State University. Of this amount,
44.35 $280,000 each year is to provide juvenile
 Sec. 66.  44
 HF4252 FOURTH ENGROSSMENT  REVISOR   TW   H4252-4
45.1  justice services and resources, including the
45.2  Juvenile Detention Alternatives Initiative, to
45.3  Minnesota counties and federally recognized
45.4  Tribes; and $220,000 each year is for funding
45.5  to local units of government, federally
45.6  recognized Tribes, and agencies to support
45.7  local Juvenile Detention Alternative
45.8  Initiatives, including but not limited to
45.9  alternatives to detention. Any unencumbered
45.10 balance remaining in the first year does not
45.11 cancel and is available in the second year.
45.12 (j) $500,000 in fiscal year 2026 is to address
45.13 contamination of PFAS, as defined in
45.14 Minnesota Statutes, section 116.943, arising
45.15 from or associated with the use of firefighting
45.16 foam at the Lake Superior College Emergency
45.17 Response Training Center (ERTC) prior to
45.18 January 1, 2015. Money may be used to
45.19 conduct environmental investigation and
45.20 response activities, including ERTC program
45.21 accommodations, and reimburse past expenses
45.22 incurred for these activities. This is a onetime
45.23 appropriation.
45.24 (k) $3,000,000 in fiscal year 2027 is for
45.25 acquisition, implementation, support, and
45.26 maintenance of automated identity verification
45.27 systems to combat enrollment fraud.
45.28 Minnesota Statutes, section 13.05, subdivision
45.29 11, applies to any contract entered into by
45.30 Minnesota State Colleges and Universities
45.31 regarding the automated identity verification
45.32 systems. This is a onetime appropriation. This
45.33 appropriation is available until June 30, 2029.
 Sec. 66.  45
 HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
46.1  (l) $5,000 in fiscal year 2027 is for a transfer
46.2  to Bemidji State University for campus
46.3  reforestation. This is a onetime appropriation.
46.4    Sec. 67. ROCHESTER COMMUNITY AND TECHNICAL COLLEGE; CITY OF
46.5  ROCHESTER LEASE AGREEMENT.
46.6      (a) The Board of Trustees of the Minnesota State Colleges and Universities may enter
46.7  into a lease agreement with the city of Rochester, not to exceed 50 years, for the lease of
46.8  land on the Rochester Community and Technical College for the construction of a sports
46.9  facility.
46.10     (b) Siting and design of the facility must be consistent with the college's master plan
46.11 and Minnesota State Colleges and Universities' building standards. Rochester Community
46.12 and Technical College may negotiate for use of the facility for partial benefit of student and
46.13 nonstudent purposes.
46.14   Sec. 68. APPROPRIATION; FOSTERING INDEPENDENCE HIGHER
46.15 EDUCATION GRANTS.
46.16     (a) Notwithstanding Minnesota Statutes, chapter 116L, $570,000 in fiscal year 2026 is
46.17 appropriated from the workforce development fund to the commissioner of the Office of
46.18 Higher Education for grants to eligible students under Minnesota Statutes, section 136A.1241,
46.19 for the summer 2026 academic term. Any unspent funds from the summer 2026 term may
46.20 be expended during the 2026-2027 academic year. This is a onetime appropriation. This
46.21 appropriation is available until June 30, 2027.
46.22     (b) $1,500,000 in fiscal year 2027 is appropriated from the general fund to the
46.23 commissioner of the Office of Higher Education for grants to eligible students under
46.24 Minnesota Statutes, section 136A.1241, for the 2026-2027 academic year. This is a onetime
46.25 appropriation.
46.26     EFFECTIVE DATE. This section is effective the day following final enactment.
46.27   Sec. 69. REPEALER.
46.28     (a) Minnesota Statutes 2024, sections 124D.09, subdivision 10a; 136A.657; 136A.827,
46.29 subdivisions 1b and 2; 136A.834, subdivisions 2, 3, and 4; 136G.03, subdivision 11; and
46.30 136G.09, subdivision 10, are repealed.
 Sec. 69.  46
HF4252 FOURTH ENGROSSMENT  REVISOR  TW  H4252-4
47.1     (b) Minnesota Statutes 2025 Supplement, section 136A.834, subdivisions 1 and 5, are
47.2 repealed.
Sec. 69.  47
  APPENDIX
  Repealed Minnesota Statutes: H4252-4
    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.
  1R
  APPENDIX
  Repealed Minnesota Statutes: H4252-4
    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.
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  APPENDIX
  Repealed Minnesota Statutes: H4252-4
    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.
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