MN SF4340

Prohibits contracts between higher education institutions and online program management companies from including incentive compensation (commissions or bonuses) based on enrollment or financial aid, including tuition-sharing arrangements.

Requires institutions to maintain control of academic programs, curriculum development, instruction, and assessment, prohibiting online program management companies from involvement in institutional governance or interference with faculty intellectual property rights.

Mandates board review and approval (first and second reading) of all contracts and amendments by the Board of Regents (University of Minnesota) or Board of Trustees (Minnesota State system) before execution.

Requires annual reporting to the commissioner detailing all expenditures by online program management companies across six categories: advertising, admissions services, instruction, student support, technology resources, and curriculum development.

Requires institutions to disclose the third-party relationship with online program management companies in all marketing communications and publish admission requirements, tuition comparisons, and financial aid information on their websites.