A buried provision in Minnesota's HF4252 gives regulators new power over surety bond requirements for fitness career schools—and it takes effect May 27, 2026.
Most gym and fitness studio owners in Minnesota have never heard of surety bonds. But if you operate a fitness career school—one that offers certifications, personal training credentials, or other professional training programs—a provision buried in HF4252 (the state's higher education finance and policy bill) directly affects your cash reserves and borrowing capacity starting next year.
Until now, Minnesota law set a $10,000 minimum floor on surety bonds required of private career schools. That floor meant regulators had to follow a formula: they could require a bond equal to 10% of tuition revenue, but never less than $10,000.
Section 38 of HF4252 removes that minimum floor. Effective upon governor approval, the new rule gives the state's regulatory office discretion to require a surety bond of any amount it deems necessary—with no lower limit and no formula constraint.
In plain terms: a regulator can now unilaterally impose a bond requirement larger than the 10% calculation would produce, directly increasing the amount of cash or credit your school must post.
This applies to private career schools, which includes fitness certification and training programs offered by gyms, studios, and independent training businesses. If you're issuing credentials, running a formal training program, or offering professional certifications—even as a side offering—you likely fall under this category.
It does not affect gyms and studios that only offer memberships and classes without formal certification or credential programs.
A surety bond is a financial guarantee. When a regulator requires one, you must either post cash in reserve or purchase a bond from a surety company (which costs a percentage of the bond amount annually). Either way, it's money tied up or spent.
Removing the $10,000 floor means a small fitness school with modest tuition revenue could now be required to post a significantly larger bond than the 10% rule would allow. There's no published guidance yet on how the office will exercise this new discretion, which creates planning uncertainty.
The change takes effect May 27, 2026. That gives fitness schools roughly a year to monitor regulatory guidance and prepare financially if bond requirements increase.
If you operate a fitness career school, review your current surety bond requirement and the regulator's authority. Watch for any published rules or guidance from the state office overseeing private career schools. Consider consulting with your accountant or attorney about how a potential increase in bonding requirements might affect your cash flow and credit lines.
The provision itself is technical and narrow, but its effect—giving regulators open-ended authority over a mandatory financial obligation—is worth understanding before the effective date.
Source: Minnesota HF4252, Section 38, page 25. Effective May 27, 2026.