1.1                          A bill for an act 
  1.2             relating to education; modifying certain provisions 
  1.3             relating to private business, trade, and 
  1.4             correspondence schools; amending Minnesota Statutes 
  1.5             1996, sections 141.21, subdivisions 3, 5, 6, and by 
  1.6             adding subdivisions; 141.22; 141.25, subdivisions 1, 
  1.7             2, 3, 5, 6, 7, 8, 9, 9a, 10, and 12; 141.26, 
  1.8             subdivision 2; 141.271, subdivisions 1, 2, 3, 4, 5, 6, 
  1.9             and 12; 141.28, subdivisions 3 and 5; 141.29, 
  1.10            subdivision 1; 141.31; 141.32; 141.35; and 141.36. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1996, section 141.21, 
  1.13  subdivision 3, is amended to read: 
  1.14     Subd. 3.  [SOLICITOR.] "Solicitor" means a person who for a 
  1.15  salary or for commission, acts as an agent, independent 
  1.16  contractor, salesperson, or counselor in procuring or attempting 
  1.17  to procure students or enrollees for a course of instruction 
  1.18  program by solicitation in any form made at any place except on 
  1.19  the actual business premises of the school and except for 
  1.20  rendering public information service at the invitation or 
  1.21  permission of a school or educational organization.  
  1.22     Sec. 2.  Minnesota Statutes 1996, section 141.21, 
  1.23  subdivision 5, is amended to read: 
  1.24     Subd. 5.  [SCHOOL.] "School" means any person, within or 
  1.25  without the state, that maintains, advertises, solicits or 
  1.26  conducts any course of instruction program for profit or for a 
  1.27  tuition charge that does not offer exclusively baccalaureate or 
  1.28  graduate programs, and which is not specifically exempted by the 
  2.1   provisions of sections 141.21 to 141.36 141.19 to 141.35.  
  2.2      Sec. 3.  Minnesota Statutes 1996, section 141.21, 
  2.3   subdivision 6, is amended to read: 
  2.4      Subd. 6.  [COURSE OF INSTRUCTION.] "Course of instruction" 
  2.5   means any classroom, correspondence, or extension course of 
  2.6   instruction; any subunit of a program; or any combination 
  2.7   thereof.  
  2.8      Sec. 4.  Minnesota Statutes 1996, section 141.21, is 
  2.9   amended by adding a subdivision to read: 
  2.10     Subd. 8.  [PROGRAM.] "Program" means any course or grouping 
  2.11  of courses that is advertised or listed in a school's catalog, 
  2.12  brochures, or other publications, or for which the school grants 
  2.13  a formal recognition. 
  2.14     Sec. 5.  Minnesota Statutes 1996, section 141.21, is 
  2.15  amended by adding a subdivision to read: 
  2.16     Subd. 9.  [DISTANCE EDUCATION SCHOOL.] "Distance education 
  2.17  school" means a school that establishes, keeps, or maintains a 
  2.18  facility or location where a program is offered through 
  2.19  correspondence, telecommunication, or electronic media. 
  2.20     Sec. 6.  Minnesota Statutes 1996, section 141.22, is 
  2.21  amended to read: 
  2.22     141.22 [CITATION.] 
  2.23     Sections 141.21 to 141.36 141.19 to 141.35 may be cited as 
  2.24  the Private business, trade and correspondence Career School Act.
  2.25     Sec. 7.  Minnesota Statutes 1996, section 141.25, 
  2.26  subdivision 1, is amended to read: 
  2.27     Subdivision 1.  [REQUIRED.] No school shall maintain, 
  2.28  advertise, solicit for, or conduct any course of instruction 
  2.29  program in Minnesota without first obtaining a license from the 
  2.30  office.  
  2.31     Sec. 8.  Minnesota Statutes 1996, section 141.25, 
  2.32  subdivision 2, is amended to read: 
  2.33     Subd. 2.  [CONTRACT UNENFORCEABLE.] Any contract entered 
  2.34  into with any person for a course of instruction program after 
  2.35  November 15, 1969, by or on behalf of any person operating any 
  2.36  school to which a license has not been issued pursuant to 
  3.1   sections 141.21 to 141.36 141.19 to 141.35, shall be 
  3.2   unenforceable in any action brought thereon.  
  3.3      Sec. 9.  Minnesota Statutes 1996, section 141.25, 
  3.4   subdivision 3, is amended to read: 
  3.5      Subd. 3.  [APPLICATION.] Application for a license shall be 
  3.6   on forms prepared and furnished by the office, and shall contain 
  3.7   the following and such other information as the office may 
  3.8   require: 
  3.9      (a) (1) the title or name of the school, together with 
  3.10  ownership and controlling officers, members, managing employees, 
  3.11  and director; 
  3.12     (b) (2) the specific fields of instruction programs which 
  3.13  will be offered and the specific purposes of such instruction; 
  3.14     (c) (3) the place or places where such instruction will be 
  3.15  given; 
  3.16     (d) (4) a listing of the equipment available for 
  3.17  instruction in each course of instruction program; 
  3.18     (e) (5) the maximum enrollment to be accommodated with 
  3.19  equipment available in each specified course of instruction 
  3.20  program; 
  3.21     (f) (6) the qualifications of instructors and supervisors 
  3.22  in each specified course of instruction program; 
  3.23     (g) (7) a current balance sheet, income statement and 
  3.24  adequate supporting documentation, prepared and certified by an 
  3.25  independent public accountant or CPA; 
  3.26     (h) (8) copies of all media advertising and promotional 
  3.27  literature and brochures currently used or reasonably expected 
  3.28  to be used by such school; 
  3.29     (i) (9) copies of all Minnesota enrollment agreement forms 
  3.30  and contract forms and all enrollment agreement forms and 
  3.31  contract forms used in Minnesota; and 
  3.32     (10) gross income earned in the preceding year from student 
  3.33  tuition, fees, and other required institutional charges, unless 
  3.34  the school files with the office a surety bond equal to at least 
  3.35  $50,000 as described in subdivision 5.  
  3.36     Sec. 10.  Minnesota Statutes 1996, section 141.25, 
  4.1   subdivision 5, is amended to read: 
  4.2      Subd. 5.  [BOND.] (a) No license shall be issued to any 
  4.3   school which maintains, conducts, solicits for, or advertises 
  4.4   within the state of Minnesota any course of instruction program, 
  4.5   unless the applicant files with the office a continuous 
  4.6   corporate surety bond in the sum of $10,000 written by a company 
  4.7   authorized to do business in Minnesota conditioned upon the 
  4.8   faithful performance of all contracts and agreements with 
  4.9   students made by the applicant.  Such 
  4.10     (b) The amount of the surety bond shall be ten percent of 
  4.11  the preceding year's gross income from student tuition, fees, 
  4.12  and other required institutional charges, but in no event less 
  4.13  than $10,000 nor greater than $50,000, except that a school may 
  4.14  deposit a greater amount at its own discretion.  A school in 
  4.15  each annual application for licensure must compute the amount of 
  4.16  the surety bond and verify that the amount of the surety bond 
  4.17  complies with this subdivision, unless the school maintains a 
  4.18  surety bond equal to at least $50,000.  A school that operates 
  4.19  at two or more locations may combine gross income from student 
  4.20  tuition, fees, and other required institutional charges for all 
  4.21  locations for the purpose of determining the annual surety bond 
  4.22  requirement.  The gross tuition and fees used to determine the 
  4.23  amount of the surety bond required for a school having a license 
  4.24  for the sole purpose of recruiting students in Minnesota shall 
  4.25  be only that paid to the school by the students recruited from 
  4.26  Minnesota. 
  4.27     (c) The bond shall run to the state of Minnesota and to any 
  4.28  person who may have a cause of action against the applicant 
  4.29  arising at any time after the bond is filed and before it is 
  4.30  canceled for breach of any contract or agreement made by the 
  4.31  applicant with any student.  The aggregate liability of the 
  4.32  surety for all breaches of the conditions of the bond shall not 
  4.33  exceed the principal sum of $10,000 deposited by the school 
  4.34  under paragraph (b).  The surety of any such bond may cancel it 
  4.35  upon giving 60 days notice in writing to the office and shall be 
  4.36  relieved of liability for any breach of condition occurring 
  5.1   after the effective date of cancellation. 
  5.2      (d) In lieu of bond, the applicant may deposit with the 
  5.3   state treasurer the a sum of $10,000 equal to the amount of the 
  5.4   required surety bond in cash, or securities such as may be 
  5.5   legally purchased by savings banks or for trust funds in an 
  5.6   aggregate market value of $10,000 equal to the amount of the 
  5.7   required surety bond. 
  5.8      (e) Failure of a school to post and maintain the required 
  5.9   surety bond or deposit under paragraph (d) may result in denial, 
  5.10  suspension, or revocation of license.  
  5.11     Sec. 11.  Minnesota Statutes 1996, section 141.25, 
  5.12  subdivision 6, is amended to read: 
  5.13     Subd. 6.  [RESIDENT AGENT.] Schools domiciled outside the 
  5.14  state of Minnesota which offer, advertise, solicit for, or 
  5.15  conduct any course of instruction program within the state of 
  5.16  Minnesota shall first file with the secretary of state a sworn 
  5.17  statement designating a resident agent authorized to receive 
  5.18  service of process.  Such The statement shall designate the 
  5.19  secretary of state as resident agent for service of process in 
  5.20  the absence of an agent otherwise so designated.  In the event a 
  5.21  school fails to file such statement, the secretary of state is 
  5.22  hereby designated as the resident agent authorized to receive 
  5.23  service of process.  Such The authorization shall be irrevocable 
  5.24  as to causes of action arising out of transactions occurring 
  5.25  prior to the filing of written notice of withdrawal from the 
  5.26  state of Minnesota filed with the secretary of state.  
  5.27     Sec. 12.  Minnesota Statutes 1996, section 141.25, 
  5.28  subdivision 7, is amended to read: 
  5.29     Subd. 7.  [MINIMUM STANDARDS.] No license shall be issued 
  5.30  unless the office first determines: 
  5.31     (a) (1) that the applicant has a sound financial condition 
  5.32  with sufficient resources available to meet the school's 
  5.33  financial obligations; to refund all tuition and other charges, 
  5.34  within a reasonable period of time, in the event of dissolution 
  5.35  of the school or in the event of any justifiable claims for 
  5.36  refund against the school by the student body; to provide 
  6.1   adequate service to its students and prospective students; and 
  6.2   for the proper use and support of the school to be maintained; 
  6.3      (b) (2) that the applicant has satisfactory training 
  6.4   facilities with sufficient tools and equipment and the necessary 
  6.5   number of work stations to train prepare adequately the students 
  6.6   currently enrolled, and those proposed to be enrolled; 
  6.7      (c) (3) that the applicant employs a sufficient number of 
  6.8   qualified instructors trained by experience and education 
  6.9   teaching personnel to give provide the training educational 
  6.10  programs contemplated; 
  6.11     (d) (4) that the school has an organizational framework 
  6.12  with administrative and instructional personnel to provide the 
  6.13  programs and services it intends to offer; 
  6.14     (5) that the premises and conditions under which the 
  6.15  students work and study are sanitary, healthful, and safe, 
  6.16  according to modern standards; 
  6.17     (e) (6) that each occupational course or program of 
  6.18  instruction or study shall be of such quality and content as to 
  6.19  provide education and training preparation which will adequately 
  6.20  prepare enrolled students for entry level positions in the 
  6.21  occupation for which trained prepared; 
  6.22     (f) (7) that the living quarters which are owned, 
  6.23  maintained, or approved by the applicant for students are 
  6.24  sanitary and safe; 
  6.25     (g) (8) that the contract or enrollment agreement used by 
  6.26  the school complies with the following provisions: 
  6.27     (1) (i) the name and address of the school must be clearly 
  6.28  stated; 
  6.29     (2) (ii) inclusion of a clear and conspicuous disclosure 
  6.30  that such agreement becomes a legally binding instrument upon 
  6.31  written acceptance of the student by the school unless canceled 
  6.32  pursuant to section 141.271; 
  6.33     (3) (iii) must contain the school's cancellation and refund 
  6.34  policy which shall be clearly and conspicuously entitled, 
  6.35  "Buyer's Right to Cancel"; 
  6.36     (4) (iv) the total cost of the course program including 
  7.1   tuition and all other charges shall be clearly stated; 
  7.2      (5) (v) the name and description of the course program, 
  7.3   including the number of hours or credits of classroom 
  7.4   instruction and/or home study lessons shall be included; 
  7.5      (6) (vi) no contract or agreement shall contain a wage 
  7.6   assignment provision and/or a confession of judgment clause; and 
  7.7      (7) (vii) each contract or enrollment agreement shall 
  7.8   contain a clear and conspicuous explanation of the form and 
  7.9   means of notice the student should use in the event the student 
  7.10  elects to cancel the contract or sale, the effective date of 
  7.11  cancellation, and the name and address of the seller to which 
  7.12  the notice should be sent or delivered; and 
  7.13     (h) (9) that there has been no adjudication of fraud or 
  7.14  misrepresentation in any criminal, civil, or administrative 
  7.15  proceeding in any jurisdiction against the school or its owner, 
  7.16  officers, agents, or sponsoring organization.  
  7.17     Sec. 13.  Minnesota Statutes 1996, section 141.25, 
  7.18  subdivision 8, is amended to read: 
  7.19     Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications for 
  7.20  initial license under sections 141.21 to 141.36 141.19 to 141.35 
  7.21  shall be accompanied by a nonrefundable application fee 
  7.22  established by the office that is sufficient to recover, but not 
  7.23  exceed, its administrative costs. 
  7.24     (b) All licenses shall expire one year from the date issued 
  7.25  by the office.  Each renewal application shall be accompanied by 
  7.26  a nonrefundable renewal fee established by the office that is 
  7.27  sufficient to recover, but does not exceed, its administrative 
  7.28  costs.  
  7.29     (c) Application for renewal of license shall be made at 
  7.30  least 30 days before the expiration of the school's current 
  7.31  license.  Each renewal form shall be supplied by the office.  It 
  7.32  shall not be necessary for an applicant to supply all 
  7.33  information required in the initial application at the time of 
  7.34  renewal unless requested by the office.  The office shall 
  7.35  establish by rule information exemptions for schools which have 
  7.36  met set performance indicators. 
  8.1      (d) Fees associated with proposals by schools for new and 
  8.2   modified programs, additional degrees, and other modifications 
  8.3   shall be established by rule. 
  8.4      Sec. 14.  Minnesota Statutes 1996, section 141.25, 
  8.5   subdivision 9, is amended to read: 
  8.6      Subd. 9.  [CATALOG OR BROCHURE.] Before a license is issued 
  8.7   to a school, other than one which offers exclusively a 
  8.8   correspondence course of instruction program, the school shall 
  8.9   furnish to the office a catalog or brochure containing the 
  8.10  following: 
  8.11     (1) identifying data, such as volume number and date of 
  8.12  publication; 
  8.13     (2) name and address of the school and its governing body 
  8.14  and officials; 
  8.15     (3) a calendar of the school showing legal holidays, 
  8.16  beginning and ending dates of each course quarter, term, or 
  8.17  semester, and other important dates; 
  8.18     (4) school policy and regulations on enrollment including 
  8.19  dates and specific entrance requirements for each course 
  8.20  program; 
  8.21     (5) school policy and regulations about leave, absences, 
  8.22  class cuts, make-up work, tardiness, and interruptions for 
  8.23  unsatisfactory attendance; 
  8.24     (6) school policy and regulations about standards of 
  8.25  progress for the student including the grading system of the 
  8.26  school, the minimum grades considered satisfactory, conditions 
  8.27  for interruption for unsatisfactory grades or progress, a 
  8.28  description of any probationary period allowed by the school, 
  8.29  and conditions of reentrance for those dismissed for 
  8.30  unsatisfactory progress; 
  8.31     (7) school policy and regulations about student conduct and 
  8.32  conditions for dismissal for unsatisfactory conduct; 
  8.33     (8) detailed schedule of fees, charges for tuition, books, 
  8.34  supplies, tools, student activities, laboratory fees, service 
  8.35  charges, rentals, deposits, and all other charges; 
  8.36     (9) policy and regulations, including an explanation of 
  9.1   section 141.271, about refunding tuition, fees, and other 
  9.2   charges if the student does not enter the course program, 
  9.3   withdraws, or is discontinued; 
  9.4      (10) a description of the available facilities and 
  9.5   equipment; 
  9.6      (11) a course outline for each course offered showing 
  9.7   course objectives, subjects or units in the course, type of work 
  9.8   or skill to be learned, and approximate time, hours, or credits 
  9.9   to be spent on each subject or unit; and 
  9.10     (12) policy and regulations about granting credit for 
  9.11  previous education and training preparation; 
  9.12     (13) a procedure for investigating and resolving student 
  9.13  complaints; and 
  9.14     (14) the name and address of the Minnesota higher education 
  9.15  services office. 
  9.16     Sec. 15.  Minnesota Statutes 1996, section 141.25, 
  9.17  subdivision 9a, is amended to read: 
  9.18     Subd. 9a.  [CORRESPONDENCE CATALOG.] Before a license is 
  9.19  issued to a school exclusively offering a correspondence course 
  9.20  of instruction program, the school shall furnish to the office a 
  9.21  catalog or brochure containing the following: 
  9.22     (1) school policy and regulations about standards of 
  9.23  progress for the student including the grading system of the 
  9.24  school, the minimum grades considered satisfactory, conditions 
  9.25  for interruption for unsatisfactory grades or progress, a 
  9.26  description of any probationary period allowed by the school, 
  9.27  and conditions of reenrollment for those students terminated for 
  9.28  unsatisfactory progress; 
  9.29     (2) a course outline for each course program offered 
  9.30  showing course objectives, subjects or units in each lesson of 
  9.31  the course, type of work or skill to be learned, and the total 
  9.32  number of lessons for each course of instruction program; and 
  9.33     (3) all items listed in subdivision 9, except items in 
  9.34  clauses (3) and (5). 
  9.35     Sec. 16.  Minnesota Statutes 1996, section 141.25, 
  9.36  subdivision 10, is amended to read: 
 10.1      Subd. 10.  [PLACEMENT RECORDS.] (a) Before a license is 
 10.2   issued to a school that offers, advertises or implies a 
 10.3   placement service, the school shall file with the office for the 
 10.4   past year and thereafter at reasonable intervals determined by 
 10.5   the office, a certified copy of the school's placement record, 
 10.6   containing a list of graduates, a description of their job, name 
 10.7   of their employer, and other information as the office may 
 10.8   prescribe.  
 10.9      (b) Each school that offers a placement service shall 
 10.10  furnish to each prospective student, prior to enrollment, 
 10.11  written information concerning the percentage of the previous 
 10.12  year's graduates who were placed in the occupation for which 
 10.13  trained prepared or in related employment. 
 10.14     Sec. 17.  Minnesota Statutes 1996, section 141.25, 
 10.15  subdivision 12, is amended to read: 
 10.16     Subd. 12.  [PERMANENT RECORDS.] Before a license is issued 
 10.17  to a school, Each school licensed under this chapter and located 
 10.18  in Minnesota shall maintain a permanent records record for all 
 10.19  students enrolled at any time each student for 50 years from the 
 10.20  last date of the student's attendance.  Each school licensed 
 10.21  under this chapter and offering a correspondence course of 
 10.22  instruction program to a student located in Minnesota shall 
 10.23  maintain a permanent records record for each Minnesota 
 10.24  students enrolled at any time student for 50 years from the last 
 10.25  date of the student's attendance.  Records include school 
 10.26  transcripts, documents, and files containing student data about 
 10.27  academic credits earned, courses completed, grades awarded, 
 10.28  degrees awarded, and periods of attendance.  To preserve 
 10.29  permanent records, a school shall submit a plan that meets the 
 10.30  following requirements: 
 10.31     (a) (1) at least one copy of the records must be held in a 
 10.32  secure depository; 
 10.33     (b) (2) an appropriate official must be designated to 
 10.34  provide a student with copies of records or a transcript upon 
 10.35  request; 
 10.36     (c) (3) an alternative method of complying with paragraphs 
 11.1   (a) and (b) clauses (1) and (2) must be established if the 
 11.2   school ceases to exist; and 
 11.3      (d) (4) a continuous surety bond must be filed with the 
 11.4   office in an amount not to exceed $20,000 if the school has no 
 11.5   binding agreement for preserving student records or a trust must 
 11.6   be arranged if the school ceases to exist. 
 11.7      Sec. 18.  Minnesota Statutes 1996, section 141.26, 
 11.8   subdivision 2, is amended to read: 
 11.9      Subd. 2.  [APPLICATION FOR PERMIT.] (a) The application for 
 11.10  the permit shall state the full name, address, previous 
 11.11  employment, and such other information concerning the solicitor 
 11.12  applicant as the office may require.  
 11.13     (b) The application shall have attached to it a certified 
 11.14  affidavit signed by a school official and the solicitor 
 11.15  attesting to the fact that the applicant has been furnished a 
 11.16  copy, has read and has knowledge of the provisions of this 
 11.17  chapter and Minnesota Rules, parts 3530.6500 to 3530.7800 and 
 11.18  rules.  
 11.19     Sec. 19.  Minnesota Statutes 1996, section 141.271, 
 11.20  subdivision 1, is amended to read: 
 11.21     Subdivision 1.  [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT 
 11.22  TO REFUND STUDENT.] For the purposes of this section, "student" 
 11.23  means the party to the contract, whether the party is the 
 11.24  student, or is the student's parent or guardian, or other person 
 11.25  on behalf of the student. 
 11.26     Subd. 1a.  [NOTICE; RIGHT TO REFUND.] Every school shall 
 11.27  notify each student, in writing, of acceptance or rejection.  In 
 11.28  the event that the student is rejected by the school, all 
 11.29  tuition, fees and other charges shall be refunded.  
 11.30     Sec. 20.  Minnesota Statutes 1996, section 141.271, 
 11.31  subdivision 2, is amended to read: 
 11.32     Subd. 2.  [SCHOOLS USING WRITTEN CONTRACTS.] (a) 
 11.33  Notwithstanding anything to the contrary, every school which 
 11.34  utilizes a written contract or enrollment agreement shall refund 
 11.35  all tuition, fees and other charges paid by a student, if the 
 11.36  student gives written notice of cancellation within five 
 12.1   business days after the day on which the contract was executed 
 12.2   regardless of whether the course of instruction program has 
 12.3   started.  
 12.4      (b) With respect to those schools utilizing a written 
 12.5   contract or enrollment agreement, when a student has been 
 12.6   accepted by the school and has entered into a contractual 
 12.7   agreement with the school and gives written notice of 
 12.8   cancellation following the fifth business day after the date of 
 12.9   execution of contract, but before the start of the course of 
 12.10  instruction program in the case of resident schools, or before 
 12.11  the first lesson has been serviced by the school in the case of 
 12.12  correspondence (home study) schools, all tuition, fees and other 
 12.13  charges, except 15 percent of the total cost of the course 
 12.14  program but not to exceed $50, shall be refunded to the student. 
 12.15     Sec. 21.  Minnesota Statutes 1996, section 141.271, 
 12.16  subdivision 3, is amended to read: 
 12.17     Subd. 3.  [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) 
 12.18  Notwithstanding anything to the contrary, every school which 
 12.19  does not utilize a written contract or enrollment agreement 
 12.20  shall refund all tuition, fees and other charges paid by a 
 12.21  student if the student gives written notice of cancellation 
 12.22  within five business days after the day on which the student is 
 12.23  accepted by the school regardless of whether the course of 
 12.24  instruction program has started. 
 12.25     (b) With respect to those schools not utilizing a written 
 12.26  contract or enrollment agreement, when a student has been 
 12.27  accepted by the school and gives written notice of cancellation 
 12.28  following the fifth business day after the day of acceptance by 
 12.29  the school, but before the start of the course of 
 12.30  instruction program, in the case of resident schools, or before 
 12.31  the first lesson has been serviced by the school, in the case of 
 12.32  correspondence (home study) schools, all tuition, fees and other 
 12.33  charges, except 15 percent of the total cost of the course 
 12.34  program but not to exceed $50, shall be refunded to the student. 
 12.35     Sec. 22.  Minnesota Statutes 1996, section 141.271, 
 12.36  subdivision 4, is amended to read: 
 13.1      Subd. 4.  [RESIDENT SCHOOLS.] With respect to all schools 
 13.2   offering a resident course of instruction program, when a 
 13.3   student has been accepted by the school and gives written notice 
 13.4   of cancellation after the start of the period of instruction for 
 13.5   which the student has been charged, but before completion of 75 
 13.6   percent of the period of instruction for which the student has 
 13.7   been charged, the amount charged for tuition, fees and all other 
 13.8   charges for the completed portion of the period of instruction 
 13.9   for which the student has been charged shall not exceed the pro 
 13.10  rata portion of the total charges for tuition, fees and all 
 13.11  other charges that the length of the completed portion of the 
 13.12  period of instruction for which the student has been charged 
 13.13  bears to its total length, plus 25 percent of the total cost of 
 13.14  the period of instruction for which the student has been charged 
 13.15  but not to exceed $100.  After completion of 75 percent of the 
 13.16  period of instruction for which the student has been charged, no 
 13.17  refunds are required.  
 13.18     Sec. 23.  Minnesota Statutes 1996, section 141.271, 
 13.19  subdivision 5, is amended to read: 
 13.20     Subd. 5.  [CORRESPONDENCE HOME STUDY SCHOOLS.] With respect 
 13.21  to all schools offering a correspondence (home study) course of 
 13.22  instruction program, when a student has been accepted by the 
 13.23  school and gives written notice of cancellation after the first 
 13.24  lesson has been completed by the student and serviced by the 
 13.25  school, but before completion of 75 percent of the course of 
 13.26  instruction program, the amount charged for tuition, fees and 
 13.27  all other charges for the completed lessons shall not exceed the 
 13.28  pro rata portion of the total charges for tuition, fees and all 
 13.29  other charges that the number of lessons completed by the 
 13.30  student bears to the total number of lessons offered, plus 25 
 13.31  percent of the total cost of the course program but not to 
 13.32  exceed $75.  After completion of 75 percent of the course of 
 13.33  instruction program, no refunds are required.  
 13.34     Sec. 24.  Minnesota Statutes 1996, section 141.271, 
 13.35  subdivision 6, is amended to read: 
 13.36     Subd. 6.  [COMBINATION CORRESPONDENCE-RESIDENT SCHOOLS.] 
 14.1   With respect to all schools offering a combination 
 14.2   correspondence (home study)-resident course of instruction 
 14.3   program, when a student has been accepted by the school and 
 14.4   gives written notice of cancellation after the start of the 
 14.5   course of instruction or after the first lesson has been 
 14.6   completed by the student and serviced by the school, whichever 
 14.7   phase comes first, the school shall refund all tuition, fees and 
 14.8   other charges as provided for in subdivision 4 if cancellation 
 14.9   occurs during the resident portion, and as provided for in 
 14.10  subdivision 5 if cancellation occurs during the correspondence 
 14.11  portion; provided that, if the cancellation occurs before the 
 14.12  student has commenced one of the phases, the price of that phase 
 14.13  shall not be considered in making the proration and the student 
 14.14  shall be entitled to a full refund of the price thereof.  
 14.15  Conversely, if the student has completed a phase of the course 
 14.16  program before cancellation, the price thereof may be retained 
 14.17  by the school provided that the total tuition, fees and other 
 14.18  charges for each phase have been stated separately in the 
 14.19  school's catalog and contract or enrollment agreement.  
 14.20     Sec. 25.  Minnesota Statutes 1996, section 141.271, 
 14.21  subdivision 12, is amended to read: 
 14.22     Subd. 12.  [INSTRUMENT NOT TO BE NEGOTIATED.] No school 
 14.23  shall negotiate any promissory instrument received as payment of 
 14.24  tuition or other charge prior to completion of 50 percent of the 
 14.25  course of instruction program.  Prior to such time, such 
 14.26  instruments may be transferred by assignment to purchasers who 
 14.27  shall be subject to all defenses available against the school 
 14.28  named as payee.  
 14.29     Sec. 26.  Minnesota Statutes 1996, section 141.28, 
 14.30  subdivision 3, is amended to read: 
 14.31     Subd. 3.  [FALSE STATEMENTS.] No school, agent, or 
 14.32  solicitor shall make, or cause to be made, any statement or 
 14.33  representation, oral, written or visual, in connection with the 
 14.34  offering or publicizing of a course program, if such school, 
 14.35  agent or solicitor knows or reasonably should have known the 
 14.36  statement or representation to be false, fraudulent, deceptive, 
 15.1   substantially inaccurate or misleading.  
 15.2      Sec. 27.  Minnesota Statutes 1996, section 141.28, 
 15.3   subdivision 5, is amended to read: 
 15.4      Subd. 5.  [IMPROBABLE COURSE PROGRAM COMPLETION OR 
 15.5   EMPLOYMENT.] No school, agent or solicitor shall enroll a 
 15.6   prospective student when it is obvious that the prospective 
 15.7   student is unlikely to successfully complete a course of 
 15.8   instruction program or is unlikely to qualify for employment in 
 15.9   the vocation or field for which the training preparation is 
 15.10  designed unless this fact is affirmatively disclosed to the 
 15.11  prospective student.  If a prospective student expresses a 
 15.12  desire to enroll after such disclosure, a disclaimer may be 
 15.13  obtained by the school.  Such disclaimer shall be signed by the 
 15.14  student and shall state substantially as follows:  "I am fully 
 15.15  aware that it is unlikely I will be able to successfully 
 15.16  complete the course of instruction program" and/or "I am fully 
 15.17  aware of the improbability or impossibility that I will qualify 
 15.18  for employment in the vocation or field for which the course 
 15.19  program was designed."  
 15.20     Sec. 28.  Minnesota Statutes 1996, section 141.29, 
 15.21  subdivision 1, is amended to read: 
 15.22     Subdivision 1.  [GROUNDS.] The office may, after notice and 
 15.23  upon providing an opportunity for a hearing, pursuant to chapter 
 15.24  14 if requested by the parties adversely affected, refuse to 
 15.25  issue, refuse to renew, revoke, or suspend any license or 
 15.26  solicitor's permit for any one or any combination of the 
 15.27  following grounds: 
 15.28     (a) (1) violation of any provisions of sections 141.21 to 
 15.29  141.36 141.19 to 141.35 or any rule promulgated adopted by the 
 15.30  office; 
 15.31     (b) (2) furnishing to the office false, misleading, or 
 15.32  incomplete information; 
 15.33     (c) (3) presenting to prospective students information 
 15.34  relating to the school which is false, fraudulent, deceptive, 
 15.35  substantially inaccurate or misleading; 
 15.36     (d) (4) refusal to allow reasonable inspection or supply 
 16.1   reasonable information after written request therefor by the 
 16.2   office; 
 16.3      (e) (5) the existence of any circumstance which would be 
 16.4   grounds for the refusal of an initial or renewal license under 
 16.5   section 141.25.  
 16.6      Sec. 29.  Minnesota Statutes 1996, section 141.31, is 
 16.7   amended to read: 
 16.8      141.31 [INJUNCTION.] 
 16.9      Upon application of the attorney general the district 
 16.10  courts shall have jurisdiction to enjoin any violation of 
 16.11  sections 141.21 to 141.36 141.19 to 141.35.  
 16.12     Sec. 30.  Minnesota Statutes 1996, section 141.32, is 
 16.13  amended to read: 
 16.14     141.32 [PENALTY.] 
 16.15     Violation of any provisions of this chapter shall be a 
 16.16  misdemeanor.  Each day's failure to comply with this chapter 
 16.17  shall be a separate violation.  The office shall establish by 
 16.18  rule a list of civil penalties and the fine associated with each 
 16.19  violation. 
 16.20     Sec. 31.  Minnesota Statutes 1996, section 141.35, is 
 16.21  amended to read: 
 16.22     141.35 [EXEMPTIONS.] 
 16.23     None of the provisions of Sections 141.21 to 141.36 141.19 
 16.24  to 141.35 shall not apply to the following: 
 16.25     (a) (1) colleges authorized by the laws of Minnesota 
 16.26  or approved pursuant to sections 136A.61 to 136A.71 or of any 
 16.27  other state or foreign country to grant degrees offer 
 16.28  exclusively baccalaureate or post-baccalaureate programs; 
 16.29     (b) (2) schools of nursing accredited by the state board of 
 16.30  nursing or an equivalent public board of another state or 
 16.31  foreign country; 
 16.32     (c) (3) public schools as defined in section 120.05; 
 16.33     (d) (4) private schools complying with the requirements of 
 16.34  section 120.101, subdivision 2 4; 
 16.35     (e) (5) private and parochial nonprofit schools exempt from 
 16.36  taxation under the constitution of Minnesota; 
 17.1      (f) (6) courses taught to students in a valid 
 17.2   apprenticeship program taught by or required by a trade union; 
 17.3      (g) (7) schools exclusively engaged in training physically 
 17.4   or mentally handicapped persons for the state of Minnesota; 
 17.5      (h) (8) schools now or hereafter licensed by boards 
 17.6   authorized under Minnesota law to issue such licenses; 
 17.7      (i) (9) schools and educational programs, or training 
 17.8   programs, conducted by persons, firms, corporations, or 
 17.9   associations, for the training of their own employees, for which 
 17.10  no fee is charged the employee; 
 17.11     (j) (10) schools engaged exclusively in the teaching of 
 17.12  purely avocational, recreational, or remedial subjects as 
 17.13  determined by the office.  Private schools teaching a method or 
 17.14  procedure to increase the speed with which a student reads are 
 17.15  not within this exemption; 
 17.16     (k) (11) driver training schools and instructors as defined 
 17.17  in section 171.33, subdivisions 1 and 2; 
 17.18     (l) (12) classes, courses, or programs conducted by a bona 
 17.19  fide trade, professional, or fraternal organization, solely for 
 17.20  that organization's membership; 
 17.21     (m) courses of instruction (13) programs in the fine arts 
 17.22  provided by organizations exempt from taxation pursuant to 
 17.23  section 290.05 and registered with the attorney general pursuant 
 17.24  to chapter 309.  "Fine arts" means activities resulting in 
 17.25  artistic creation or artistic performance of works of the 
 17.26  imagination which are engaged in for the primary purpose of 
 17.27  creative expression rather than commercial sale or employment.  
 17.28  In making this determination the office may seek the advice and 
 17.29  recommendation of the Minnesota board of the arts; 
 17.30     (n) (14) classes, courses, or programs intended to fulfill 
 17.31  the continuing education requirements for licensure or 
 17.32  certification in a profession, which classes, courses, or 
 17.33  programs have been approved by a legislatively or judicially 
 17.34  established board or agency responsible for regulating the 
 17.35  practice of the profession, and which are offered primarily to a 
 17.36  person who currently practices the profession; 
 18.1      (o) (15) classes, courses, or programs intended to prepare 
 18.2   students to sit for undergraduate, graduate, postgraduate, or 
 18.3   occupational licensing and occupational entrance examinations; 
 18.4      (p) (16) classes, courses, or programs of a seminar nature 
 18.5   providing 16 or fewer clock hours of instruction that are not 
 18.6   part of the curriculum for an occupation or are not intended to 
 18.7   prepare a person for entry level employment; 
 18.8      (q) (17) classes, courses, or programs of a seminar nature 
 18.9   providing instruction in personal development, modeling, or 
 18.10  acting; and 
 18.11     (r) (18) training or instructional programs, in which one 
 18.12  instructor teaches an individual student, that are not part of 
 18.13  the curriculum for an occupation or are not intended to prepare 
 18.14  a person for entry level employment; and 
 18.15     (19) schools with no physical presence in Minnesota engaged 
 18.16  exclusively in offering distance education courses or programs 
 18.17  that are located in and regulated by other states or 
 18.18  jurisdictions.  
 18.19     Sec. 32.  Minnesota Statutes 1996, section 141.36, is 
 18.20  amended to read: 
 18.21     141.36 [FINDINGS; PUBLIC POLICY.] 
 18.22     The legislature finds that the availability of courses and 
 18.23  programs leading to academic degrees, certificates, diplomas, or 
 18.24  other formal recognition offered by responsible private 
 18.25  institutions of post-secondary education and the existence of 
 18.26  post-secondary educational institutions is in the best interests 
 18.27  of the people of this state.  The legislature finds that the 
 18.28  state can provide assistance and protection for persons choosing 
 18.29  private institutions and programs by establishing policies and 
 18.30  procedures to ensure the authenticity and legitimacy of private 
 18.31  post-secondary education institutions and programs. 
 18.32     It shall be the public policy of the state to protect all 
 18.33  persons and schools covered by sections 141.21 to 141.36 141.19 
 18.34  to 141.35 from unfounded charges, complaints or harassment, and 
 18.35  to protect the interests of prospective and enrolled students 
 18.36  and to inform the public by the dissemination of public 
 19.1   information regarding private business, trade, and 
 19.2   correspondence schools licensed pursuant to this chapter, 
 19.3   provided that data obtained pursuant to section 141.30 shall not 
 19.4   be divulged except as therein provided. 
 19.5      Sec. 33.  [REVISOR INSTRUCTION.] 
 19.6      In the next and subsequent editions of Minnesota Statutes, 
 19.7   the revisor shall renumber section 141.36 as 141.19.