NC BOARD OF PROPRIETARY SCHOOLS.

View NCGA Bill Details2017-2018 Session
House Bill 327 (Public) Filed Monday, March 13, 2017
AN ACT TO ESTABLISH THE NORTH CAROLINA PROPRIETARY SCHOOL LICENSURE ACT.
Intro. by Blackwell, Fraley, R. Turner.

Status: Ref To Com On Rules and Operations of the Senate (Senate Action) (Apr 27 2017)

SOG comments (1):

Identical bill

Identical to S 248, filed 3/13/17.

H 327

Bill Summaries:

  • Summary date: Apr 25 2017 - More information

    House committee substitute to the 2nd edition makes the following change. Changes the effective date of the act to 90 days after the act becomes law (previously, Section 1 was effective July 1, 2017, and the remainder of the act was effective when it became law).


  • Summary date: Apr 19 2017 - More information

    House committee substitute makes the following change to the 1st edition:

    Makes organizational changes by renumbering the proposed statutes and makes conforming changes.

    Amends proposed GS 115F-7 (Office of Proprietary Schools, now re-codified as GS 115F-30 in organizational changes). Provides that the Office of Proprietary Schools must be staffed with state employees (currently, full-time state employees).

    Amends proposed GS 115F-8 (Authority to establish and collect fees; Commercial Education Fund; refund of fees, re-codified as GS 115F-35 in organizational changes). Directs the Board to establish fees (currently, reasonable fees) for the currently listed services. Creates a schedule of maximum fees for the currently listed services. Requires the fees to be used for the purposes of implementing the Chapter. Prohibits salaries, expenses, or other obligations of the Board from being charged against the General Fund.

    Amends GS 116-15. Provides that institutions conducting post-secondary degree activity that are not subject to GS Chapter 115C, in addition to the other currently listed statutes, are subject to licensure under this statute, except as exempted under this statute.

    Establishes a schedule of fees to be used until fees may be established under GS 115F-35.


  • Summary date: Mar 13 2017 - More information

    Repeals GS Chapter 115D, Article 8 (regarding Proprietary Schools) effective July 1, 2017.

    Enacts new GS Chapter 115F (regarding Proprietary Schools). The new Chapter is largely identical to the repealed GS Chapter 115D, Article 8, with the following exceptions.

    Sets out the purpose of the new Chapter

    New term definitions are added, including Distance Education and License.

    Changes the definition of Catastrophic loss amount to increase the dollar amount in the definition from $1 million to $1.5 million. Changes the definition of Fund cap amount from $1.5 million to the amount for the catastrophic loss amount plus a $5,000 reserve.

    Changes the name of the State Board of Proprietary Schools to the North Carolina Board of Proprietary Schools (Board), and moves its administration from the Community Colleges System Office to the Department of Administration. Transfers all powers and responsibilities currently given to the State Board of Community College regarding proprietary schools to the North Carolina Board of Proprietary Schools.

    Requires the Board to establish the office of Proprietary Schools. Directs the executive director of the Office of Proprietary Schools to annually submit a written report to the North Carolina Board of Proprietary Schools and the State Board of Community College to report annually, including eight specified pieces of information. Deletes the provision requiring the Executive Director to give the Board an annual projected operating budget.

    Directs that the physical locations of proprietary schools in separate counties constitute separate proprietary schools for the purposes of licensure.

    Allows the Board to refuse to issue or renew a license, or suspend or revoke a license, for failure to pay license or renewal fees.  

    Amends the Bond requirements to allow the bond currently applicable to the first four license renewals to apply to the first five bond requirements, and the requirement for schools licensed for at least five continuous school years to apply to schools licensed for at least six continuous school years. Authorizes the Board to require any licensed school to increase its bond if it determines the increase is necessary to provide indemnification to a student or student's parent or legal guardian who may suffer a loss of tuition, fees, or any other instructional­related expenses paid to the school.

    Authorizes the Board or its authorized representatives to make application to superior court for an order enjoining violations of this Chapter. Authorizes the court to grant an injunction or restraining order or take any other appropriate action upon a showing of violation or impending violation, regardless of whether criminal prosecution or other actions may be instituted as a result of the violation. Authorizes the Board to assess a civil penalty of up to $1,000 for the violation of any section of this Chapter, or of Board rules implementing the chapter, to be remitted to the Civil Penalty and Forfeiture Fund. Directs the Board to establish a schedule of penalties for violations of this Chapter. Directs the Board to consider four listed factors before assessing a civil penalty under the statute. Authorizes the Board to assess the costs of enforcement actions taken under this Chapter.

    Makes technical and conforming changes.

    Makes conforming changes to GS 86A­22(7), GS 88B­17(a), GS 90­171.55(b)(1), GS 93A­32(2), GS 116­15, and GS 126­5(c2)(4).

    The act does not affect the current terms of the members of the State Board of Proprietary Schools, and directs them to continue as members of the North Carolina Board of Proprietary Schools.

    Authorizes the North Carolina Board of Proprietary Schools to enter into an agreement with the State Board of Community Colleges to provide that the Community Colleges System Office acts as the fiscal agent for the North Carolina Board of Proprietary Schools and for the Office of Proprietary Schools for the purpose of administering the Commercial Education Fund and the Student Protection Fund, until those funds may be established in accounts with the Department of State Treasurer under the sole supervision and direction of the North Carolina Board of Proprietary Schools.


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