HF4627

Purpose

• Establish a new reporting requirement to help detect and track enrollment fraud in postsecondary education. The bill requires postsecondary institutions to report any detected enrollment fraud to the Commissioner of the Office of Higher Education within 30 days, and it directs annual public reporting on fraud activity and related state financial aid. It also asks for coding guidance to add this new provision to Minnesota Statutes chapter 136A.

Key Definitions

• Enrollment fraud: any act of intentional deception or misrepresentation aimed at accessing financial aid, campus information technology systems, or student support systems at a postsecondary institution.
• Purported student: a person involved in or attempting to engage in enrollment fraud.
• Commissioner: the Commissioner of the Office of Higher Education.
• Postsecondary institution: institutions governed by the Board of Trustees of the Minnesota State Colleges and Universities, and private postsecondary institutions eligible for Title IV funding; University of Minnesota is asked to comply but isn’t required.

Applicability and Institutions Affected

• Applies to:
  • Minnesota State Colleges and Universities (the system under the Board of Trustees).
  • Private postsecondary institutions eligible for Title IV funding.
• University of Minnesota: explicitly requested to comply with the section.
• These institutions participate in the federal Title IV program under the Higher Education Act.

Duties of Postsecondary Institutions

• Duty to report fraud: If an institution detects enrollment fraud, it must report the instance to the Commissioner within 30 days of detection.
• Required information in the report: at minimum, the amount of state financial aid the purported student qualified for, and the amount of state financial aid disbursed before detection (if any).

Commissioner Reporting Requirements

• The Commissioner must produce an annual report starting July 15, 2027, to the chairs and ranking minority members of the legislative committees that oversee higher education.
• Contents of the annual report:
  • Total number of enrollment fraud instances statewide.
  • Total amount of state financial aid purportedly claimed.
  • Total amount of state financial aid disbursed to purported students.
• Data must be disaggregated by institution, institution type, program type, and any other relevant factors determined by the Commissioner.

Data Details and Disaggregation

• The reporting data should be broken out by institution and type, program type, and other relevant factors to help analyze where enrollment fraud is occurring and how financial aid is affected.

Timeline and Implementation Notes

• Institutions must report fraud within 30 days of detection.
• The Commissioner’s annual reporting to the Legislature begins on July 15, 2027.
• The bill also requires proposing coding for the new law within Minnesota Statutes chapter 136A.

Significance and Effects

• Creates a formal, time-bound process for identifying and reporting enrollment fraud.
• Improves transparency about fraud incidents and the use of state financial aid.
• Provides lawmakers with regular, disaggregated data to monitor trends and target prevention efforts.
• Aligns with federal Title IV participation by incorporating provisions applicable to Title IV institutions and by requesting compliance from the University of Minnesota.

Summary of What Changes

• Introduces a mandatory fraud reporting obligation for certain postsecondary institutions.
• Establishes minimum data elements to be reported about each fraud instance.
• Establishes an annual, public-facing data report on enrollment fraud and related state aid impacts.
• Requires coding changes to be proposed forShelving this new provision within the Minnesota Statutes.

Relevant Terms - enrollment fraud - purported student - postsecondary institution - Office of Higher Education - Commissioner - Title IV - Higher Education Act - Minnesota State Colleges and Universities - private postsecondary institutions - University of Minnesota - state financial aid - disbursed - 30 days - July 15, 2027 - Minnesota Statutes chapter 136A - data disaggregation - institution type - program type