SF4472

Purpose

Explain how the bill changes the exemption from reporting and marketing requirements for colleges and universities that contract with online program management companies.

Key Provisions

• Amends Minnesota Statutes 2024 section 135A.195, subdivision 6 to address the exemption for institutions of higher education that contract with online program management companies (OPMs).
• Removes the expiration date tied to the exemption, making the exemption permanent (no scheduled end date).
• Keeps a carve-out: for any addendum or amendment to a contract entered into by an institution of higher education on or before July 1, 2023 that changes the number of managed programs, the exemption does not apply to that addendum or amendment.
• As a result, contracts and addenda that meet the carve-out would continue to be subject to reporting and marketing requirements, while the general exemption would apply permanently to other ongoing OPM contracts.

What the bill seeks to accomplish

• Provide a lasting exemption from certain reporting and marketing requirements for ongoing contracts with online program management companies.
• Maintain oversight for specific pre-2023 contract changes that alter the number of programs managed, ensuring those changes are reportable and subject to marketing requirements.

Significant changes to existing law

• Eliminates the expiration of the exemption (previously set to expire July 1, 2028) and makes the exemption permanent.
• Establishes a narrow exception that pre-2023 contract addenda altering the number of managed programs are not exempt and thus remain subject to reporting/marketing requirements.

Practical implications

• Institutions with ongoing OPM contracts could operate under the exemption indefinitely, reducing ongoing reporting/marketing obligations.
• Any contract changes (addenda) made before July 1, 2023 that increase or decrease the number of managed programs would lose the exemption and fall under reporting/marketing requirements.
• Public transparency and oversight related to OPM contracts may be affected for long-running arrangements, depending on how the permanent exemption is applied.

Notable terms from the bill

• online program management companies (OPMs)
• reporting requirements
• marketing requirements
• exemption
• Minnesota Statutes 2024 section 135A.195 subdivision 6
• subdivision 6 (Subd.6)
• addendum or amendment
• contract
• number of managed programs
• institution of higher education
• July 1, 2023 (date referenced for pre-2023 contracts)
• July 1, 2028 (current expiry date referenced in the text)

Relevant Terms online program management (OPMs), reporting requirements, marketing requirements, exemption, 135A.195 subdivision 6, contract, addendum, amendment, managed programs, institution of higher education, July 1, 2023, July 1, 2028