NC BOARD OF PROPRIETARY SCHOOLS.

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View NCGA Bill Details2017-2018 Session
Senate Bill 248 (Public) Filed Monday, March 13, 2017
AN ACT TO ESTABLISH THE NORTH CAROLINA PROPRIETARY SCHOOL LICENSURE ACT.
Intro. by Curtis.

Status: Ref To Com On Rules and Operations of the Senate (Senate Action) (Mar 14 2017)

Bill History:

S 248

Bill Summaries:

  • Summary date: Mar 13 2017 - View Summary

    Identical to H 327, filed 3/13/17.

    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 The new Chapter is largely identical to the repealed GS Chapter 115D, Article 8, with the following exceptions.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 instructional-related 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 86A-22(7), GS 88B-17(a), GS 90-171.55(b)(1), GS 93A-32(2), GS 116-15, and GS 126-5(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.