The bill amends Minnesota Statutes 2025 Supplement, section 124D.09, subdivision 13, to modify the financial arrangements for payments to postsecondary institutions and schools participating in the postsecondary enrollment options program. Key changes include the stipulation that the department will make payments for courses taken for secondary credit and will not provide payments for courses from which a student officially withdraws during the first ten business days of the postsecondary institution's quarter or semester. If a student withdraws between 11 to 30 business days, the payment will be prorated based on the number of business days attended.

Additionally, the bill outlines the reimbursement rates for institutions granting quarter and semester credits, specifying that the reimbursement per credit hour will be calculated based on a formula involving the general revenue formula allowance. It also mandates that any changes in enrollment during a quarter or semester must be reported by the postsecondary institution, and any overpayments identified by the department must be promptly remitted by the institution. The effective date for these changes is set for July 1, 2026.