Citations Affected: IC 9-13; IC 9-14; IC 9-27; IC 20-20; IC 21-7;
IC 21-9; IC 21-11; IC 21-12; IC 21-13; IC 21-14; IC 21-16; IC 21-17;
IC 21-18; IC 21-18.5; IC 22-4; IC 22-4.1; IC 25-21.8; IC 35-51;
noncode.
January 9, 2012, read first time and referred to Committee on Education.
January 25, 2012, amended, reported _ Do Pass.
January 30, 2012, read second time, amended, ordered engrossed.
January 31, 2012, engrossed. Read third time, passed. Yeas 60, nays 33.
bearing proprietary educational institution may not be considered or required by the commission on postsecondary proprietary education as a condition for accrediting or renewing the accreditation of or for approval of the programs of a postsecondary credit bearing proprietary educational institution. Requires the auditor of state to transfer $300,000 of the balance of the career college student assurance fund to the career college student assurance fund administered by the commission on postsecondary proprietary education. Requires the state auditor to transfer the balance of the current career college student assurance fund to the student assurance fund administered by the state workforce innovation council. Requests the legislative council to assign issues relating to the accreditation of proprietary institutions to an appropriate study committee. Repeals: (1) provisions relating to establishment and administration of SSAC; (2) provisions relating to establishment and administration of COPE; (3) certain provisions requiring the commission for higher education to provide SSAC information to implement the minority teacher or nursing scholarship program; and (4) definitions relating to SSAC or COPE. Adds transitional provisions. Makes conforming and technical amendments.
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
educational institution (as defined in IC 21-18.5-2-12) who is
teaching, conducting classes for, giving demonstrations to, or
supervising the practice of individuals learning to operate or drive
motor vehicles or preparing to take an examination for a driver's
license.
(5) An individual under the authority of a state educational
institution (as defined in IC 21-7-13-32) who is teaching,
conducting classes for, giving demonstrations to, or supervising
the practice of individuals learning to operate or drive motor
vehicles or preparing to take an examination for a driver's license.
education concerning the coordination of career and technical
education, including the following:
(A) The Indiana economic development corporation.
(B) The council.
(C) A private industry council (as defined in 29 U.S.C. 1501
et seq.).
(D) The department of labor.
(E) The Indiana commission on proprietary education.
(F) (E) The commission for higher education.
(G) (F) The department of workforce development.
(G) The state workforce innovation council.
(H) The commission on postsecondary proprietary
education.
(3) Review and make recommendations concerning plans
submitted by the commission for higher education and the
council. The state board may request the resubmission of plans or
parts of plans that:
(A) are not consistent with the long range state plan of the
state board;
(B) are incompatible with other plans within the system; or
(C) duplicate existing services.
(4) Report to the general assembly on the state board's
conclusions and recommendations concerning interagency
cooperation, coordination, and articulation of career and technical
education and employment training. A report under this
subdivision must be in an electronic format under IC 5-14-6.
(5) Study and develop a plan concerning the transition between
secondary level career and technical education and postsecondary
level career and technical education.
(6) Enter into agreements with the federal government that may
be required as a condition of receiving federal funds under the
Carl D. Perkins Vocational and Applied Technology Act (20
U.S.C. 2301 et seq.). An agreement entered into under this
subdivision is subject to the approval of the budget agency.
collegiate grade directly creditable toward a baccalaureate
degree;
(B) is either operated by the state or operated nonprofit; and
(C) is accredited by a recognized regional accrediting agency,
including:
(i) Ancilla College;
(ii) Anderson University;
(iii) Bethel College;
(iv) Butler University;
(v) Calumet College of St. Joseph;
(vi) DePauw University;
(vii) Earlham College;
(viii) Franklin College;
(ix) Goshen College;
(x) Grace College and Seminary;
(xi) Hanover College;
(xii) Holy Cross College;
(xiii) Huntington University;
(xiv) Indiana Institute of Technology;
(xv) Indiana Wesleyan University;
(xvi) Manchester College;
(xvii) Marian University;
(xviii) Martin University;
(xix) Oakland City University;
(xx) Rose-Hulman Institute of Technology;
(xxi) Saint Joseph's College;
(xxii) Saint Mary-of-the-Woods College;
(xxiii) Saint Mary's College;
(xxiv) Taylor University;
(xxv) Trine University;
(xxvi) University of Evansville;
(xxvii) University of Indianapolis;
(xxviii) University of Notre Dame;
(xxix) University of Saint Francis;
(xxx) Valparaiso University; and
(xxxi) Wabash College;
or is accredited by the commission on proprietary education
commission on postsecondary proprietary education under
IC 21-18.5-6 or an accrediting agency recognized by the
United States Department of Education.
(2) Ivy Tech Community College.
(3) A hospital that operates a nursing diploma program that is
accredited by the Indiana state board of nursing.
(4) A postsecondary credit bearing proprietary educational
institution that meets the following requirements:
(A) Is incorporated in Indiana, or is registered as a foreign
corporation doing business in Indiana.
(B) Is fully accredited by and is in good standing with the
commission on proprietary education. commission on
postsecondary proprietary education under IC 21-18.5-6.
(C) Is accredited by and is in good standing with a regional or
national accrediting agency.
(D) Offers a course of study that is at least eighteen (18)
consecutive months in duration (or an equivalent to be
determined by the commission on proprietary education)
commission on postsecondary proprietary education under
IC 21-18.5-6) and that leads to an associate or a baccalaureate
degree recognized by the commission on proprietary
education. commission on postsecondary proprietary
education under IC 21-18.5-6.
(E) Is certified to the state student assistance commission by
the commission on proprietary education commission on
postsecondary proprietary education as meeting the
requirements of this subdivision.
(b) "Approved postsecondary educational institution" for purposes
of section 15 of this chapter, IC 21-12-6, IC 21-12-7, and IC 21-13-1-4,
means the following:
(1) A state educational institution.
(2) A nonprofit college or university.
(3) A postsecondary credit bearing proprietary educational
institution that is accredited by an accrediting agency recognized
by the United States Department of Education.
of instruction; or
(3) other items or services approved by the state student
assistance commission for higher education under rules adopted
by the state student assistance commission for higher education
under IC 21-18.5-4;
that are not included in educational costs.
maximum grant that may be offered to an eligible student for an
associate degree program at a postsecondary credit bearing
proprietary educational institution that qualifies as an approved
postsecondary educational institution.
(b) The maximum amount of a grant that may be offered to an
eligible student in a program at a postsecondary credit bearing
proprietary educational institution is equal to the maximum amount of
an award the student could receive under this chapter if the student
were enrolled at Ivy Tech Community College.
[EFFECTIVE JULY 1, 2012]: Sec. 4. A scholarship recipient may
apply a scholarship under this chapter to the educational costs of a
postsecondary educational institution only if the postsecondary
educational institution qualifies under this section. For a postsecondary
educational institution to qualify under this section, the postsecondary
educational institution must satisfy the following requirements:
(1) Be an approved postsecondary educational institution.
(2) Be accredited by an agency that is recognized by the Secretary
of the United States Department of Education.
(3) Operate an organized program of postsecondary education
leading to an associate or a baccalaureate degree on a campus
located in Indiana.
(4) Be approved by the commission:
(A) under rules adopted under IC 4-22-2; and
(B) in consultation with the commission on postsecondary
proprietary education established by IC 21-18.5-5-1, if
appropriate.
electronically to participate in the program using an online Internet
application on the commission's web site.
resources reasonably available to the applicant, as defined by the
commission, that, in the absence of an award under this chapter,
would deter the scholarship applicant from completing the
applicant's education at the approved postsecondary educational
institution that the applicant has selected and that has accepted
the applicant.
(8) Meet any other minimum criteria established by the
commission.
(b) This section applies to an individual who graduates from high
school after December 31, 2011. To be eligible for a scholarship under
this section, a student must initially attend the eligible institution
described in subdivision subsection (a)(4) not later than the fall
semester (or its equivalent, as determine determined by the
commission) in the year immediately following the year in which the
student graduates from high school.
institution and:
(A) receives no other financial assistance specifically
designated for educational costs, the lesser of:
(i) the full tuition scholarship amounts of Ivy Tech
Community College; or
(ii) the actual tuition and regularly assessed fees of the
eligible institution; or
(B) receives other financial assistance specifically designated
for educational costs, the balance required to attend the
eligible institution, not to exceed the amount described in
clause (A).
scholarship applicant; plus
(2) an additional amount based on the expected family
contribution, if necessary, as determined by the commission, to
provide scholarships within the available appropriation.
(d) The total of all tuition scholarships awarded under this section
in a state fiscal year may not exceed the amount available for
distribution from the fund for scholarships under this chapter. If the
total amount to be distributed from the fund in a state fiscal year
exceeds the amount available for distribution, the amount to be
distributed to each eligible applicant shall be proportionately reduced
so that the total reductions equal the amount of the excess based on the
relative financial need of each eligible applicant.
shall hold a public hearing before adopting a proposed tuition and fee
rate increase. The state educational institution shall give public notice
of the hearing at least ten (10) days before the hearing. The public
notice must include the specific proposal for the tuition and fee rate
increase and the expected uses of the revenue to be raised by the
proposed increase. The hearing must be held not later than thirty (30)
days after the commission for higher education has established the
recommended tuition and mandatory fee increase targets for each state
educational institution under section 12.5 of this chapter.
innovation council or the commission on postsecondary
proprietary education to review a school under its jurisdiction, or a
comparable school outside Indiana that is an eligible institution under
this chapter. The commission may use the results of the review to
determine whether to remove an eligible institution's qualified status.
a tuition, fee, or charge, instructional or educational services or training
in a technical, professional, mechanical, business, or industrial
occupation, either in the recipient's home, at a designated location, or
by mail. The term does not include the following:
(1) A state educational institution or another educational
institution established by law and financed in whole or part by
public funds.
(2) A postsecondary proprietary educational institution approved
or regulated by any other state regulatory board, agency, or
commission other than the Indiana commission on proprietary
education.
(3) An elementary or secondary school attended by students in
kindergarten or grades 1 through 12, supported in whole or in part
by private tuition payments.
(4) Any educational institution or educational training that:
(A) is maintained or given by an employer or a group of
employers, without charge, for employees or for individuals
the employer anticipates employing;
(B) is maintained or given by a labor organization, without
charge, for its members or apprentices;
(C) offers exclusively instruction that is clearly
self-improvement, motivational, or avocational in intent
(including instruction in dance, music, self-defense, and
private tutoring); or
(D) is a Montessori or nursery school.
(5) A privately endowed two (2) or four (4) year degree granting
institution, regionally accredited, whose principal campus is
located in Indiana.
general assembly concerning postsecondary education.
(4) Perform other functions assigned by the governor or the
general assembly, except those functions specifically assigned by
law to the state workforce innovation council under IC 22-4.1-19.
(5) Administer state financial aid programs under
IC 21-18.5-4.
(6) Provide staff and office space for the commission on
postsecondary proprietary education established by
IC 21-18.5-5-1.
to IC 21-7 through IC 21-17 by legislation enacted during the
2012 session of the general assembly;
had not been enacted.
Sec. 2. (a) The state student assistance commission established
by IC 21-11-2-1 (before its repeal) is abolished.
(b) The following are transferred on July 1, 2012, from the state
student assistance commission to the commission for higher
education established by IC 21-18-2-1:
(1) All real and personal property of the state student
assistance commission.
(2) All powers, duties, assets, and liabilities of the state student
assistance commission.
(3) All appropriations to the state student assistance
commission.
(c) All rules or policies that were adopted by the state student
assistance commission before July 1, 2012, shall be treated as
though the rules were adopted by the commission for higher
education established by IC 21-18-2-1 until the commission for
higher education adopts new rules or policies.
(d) After June 30, 2012, a reference to the state student
assistance commission in a statute or rule shall be treated as a
reference to the commission for higher education established by
IC 21-18-2-1.
Sec. 3. After June 30, 2012, any reference to the Indiana
commission for postsecondary proprietary education or the
Indiana commission on proprietary education in any statute or rule
shall be treated as a reference to the:
(1) commission on postsecondary proprietary education
established by IC 21-18.5-5-1 if the reference pertains to a
postsecondary credit bearing proprietary educational
institution; or
(2) state workforce innovation council established by
IC 22-4-18.1-3 if the reference pertains to a postsecondary
proprietary educational institution (as defined in
IC 22-4.1-21-9).
Sec. 4. (a) Changes made by P.L.218-1987 do not affect:
(1) rights or liabilities accrued;
(2) penalties incurred;
(3) crimes committed; or
(4) proceedings begun;
before July 1, 1987. These rights, liabilities, penalties, crimes, and
proceedings continue and shall be imposed and enforced under
prior law as if P.L.218-1987 had not been enacted.
(b) The abolishment of the Indiana commission on proprietary
education on July 1, 2012, by legislation enacted during the 2012
session of the general assembly does not affect:
(1) rights or liabilities accrued;
(2) penalties incurred;
(3) crimes committed; or
(4) proceedings begun;
before July 1, 2012, that pertain to a postsecondary credit bearing
proprietary educational institution. These rights, liabilities,
penalties, crimes, and proceedings continue and shall be imposed
and enforced by the commission on postsecondary proprietary
education established by IC 21-18.5-5-1.
(c) The abolishment of the Indiana commission on proprietary
education on July 1, 2012, by legislation enacted during the 2012
session of the general assembly does not affect:
(1) rights or liabilities accrued;
(2) penalties incurred;
(3) crimes committed; or
(4) proceedings begun;
before July 1, 2012, that pertain to a postsecondary proprietary
educational institution (as defined in IC 22-4.1-21-9). These rights,
liabilities, penalties, crimes, and proceedings continue and shall be
imposed and enforced by the state workforce innovation council
established under IC 22-4-18.1-3.
Sec. 5. (a) The Indiana commission on proprietary education is
abolished on July 1, 2012.
(b) Unless otherwise specified in a memorandum of
understanding described in subsection (e), the following are
transferred on July 1, 2012, from the Indiana commission on
proprietary education to the commission for higher education
established by IC 21-18-2-1:
(1) All real and personal property of the Indiana commission
on proprietary education.
(2) All assets and liabilities of the Indiana commission on
proprietary education.
(3) All appropriations to the Indiana commission on
proprietary education.
(c) All powers and duties of the Indiana commission on
proprietary education before its abolishment pertaining to the
accreditation of a postsecondary credit bearing proprietary
educational institution are transferred to the commission on
postsecondary proprietary education established by IC 21-18.5-5-1.
(d) All powers and duties of the Indiana commission on
proprietary education before its abolishment pertaining to the
accreditation of a postsecondary proprietary educational
institution (as defined in IC 22-4.1-21-9) are transferred to the
state workforce innovation council established by IC 22-4-18.1-3.
(e) The commission for higher education established by
IC 21-18-2-1 may enter into a memorandum of understanding with
the state workforce innovation council established by
IC 22-4-18.1-3 to implement the transition of the responsibilities
and obligations of the Indiana commission on proprietary
education before its abolishment to the commission for higher
education and the state workforce innovation council.
(f) Rules that were adopted by the Indiana commission on
proprietary education before July 1, 2012, shall be treated as
though the rules were adopted by the state workforce innovation
council established by IC 22-4-18.1-3 until the state workforce
innovation council adopts rules under IC 4-22-2 to implement
IC 22-4.1-21.
(g) An accreditation granted or a permit issued under
IC 21-17-3 by the Indiana commission on proprietary education
before July 1, 2012, shall be treated after June 30, 2012, as an
accreditation granted or a permit issued by the:
(1) commission on postsecondary proprietary education
established by IC 21-18.5-5-1 if the accreditation pertains to
a postsecondary credit bearing proprietary educational
institution (as defined in IC 21-18.5-2-12); or
(2) state workforce innovation council if the accreditation
pertains to a postsecondary proprietary educational
institution (as defined in IC 22-4.1-21-9).
(h) Proceedings pending before the Indiana commission on
proprietary education on July 1, 2012, shall be transferred from
the Indiana commission on proprietary education to the
commission on postsecondary proprietary education and treated
as if the proceedings were initiated by the:
(1) commission on postsecondary proprietary education
established by IC 21-18.5-5-1 for a proceeding pertaining to
a postsecondary credit bearing proprietary educational
institution (as defined in IC 21-18.5-2-12); or
(2) state workforce innovation council if the proceeding
pertains to a postsecondary proprietary educational
institution (as defined in IC 22-4.1-21-9).
Chapter 2. Definitions
Sec. 1. Unless otherwise provided, the definitions in this chapter
apply throughout this article.
Sec. 2. "Accreditation", for purposes of IC 21-18.5-6, means
certification of a status of approval or authorization by the
commission on postsecondary proprietary education to conduct
business as a postsecondary credit bearing proprietary educational
institution.
Sec. 3. "Agent", for purposes of IC 21-18.5-6, means a person
who:
(1) enrolls or seeks to enroll a resident of Indiana through:
(A) personal contact;
(B) telephone;
(C) advertisement;
(D) letter; or
(E) publications;
in a course offered by a postsecondary credit bearing
proprietary educational institution; or
(2) otherwise holds the person out to the residents of Indiana
as representing a postsecondary credit bearing proprietary
educational institution.
Sec. 4. "Agent's permit", for purposes of IC 21-18.5-6, means a
nontransferable written authorization issued to a person by the
commission on postsecondary proprietary education to solicit a
resident of Indiana to enroll in a course offered or maintained by
a postsecondary credit bearing proprietary educational institution.
Sec. 5. "Application", for purposes of IC 21-18.5-6, means a
written request for accreditation or an agent's permit on forms
supplied by the commission on postsecondary proprietary
education.
Sec. 6. "Caretaker relative" means a relative by blood or law
who lives with a minor and exercises parental responsibility, care,
and control over the minor in the absence of the minor's parent.
Sec. 7. "Commission" means the commission for higher
education established by IC 21-18-2-1.
Sec. 8. "Course", for purposes of IC 21-18.5-6, means a plan or
program of instruction or training, whether conducted in person,
by mail, or by any other method.
Sec. 9. "Enrollment" means the establishment and maintenance
of an individual's status as an undergraduate student in a
postsecondary credit bearing proprietary educational institution.
Sec. 10. "Higher education award" means a monetary award.
Sec. 11. "Person", for purposes of IC 21-18.5-6, means an
individual, a partnership, a limited liability company, an
association, a corporation, a joint venture, a trust, a receiver, or a
trustee in bankruptcy.
Sec. 12. (a) "Postsecondary credit bearing proprietary
educational institution" means a degree granting and credit
bearing institution that provides instructional or educational
services or training in a technical, professional, mechanical,
business, or industrial occupation, and is accredited by an
accrediting agency recognized by the United States Department of
Education or is seeking and progressing toward accreditation by
an accrediting agency recognized by the United States Department
of Education.
(b) The term does not include the following:
(1) An Indiana state educational institution or another
Indiana educational institution established by law and
financed in whole or in part by public funds.
(2) A postsecondary proprietary educational institution
approved or regulated by any other state regulatory board,
agency, or commission other than the commission on
postsecondary proprietary education.
(3) An elementary or secondary school attended by students
in kindergarten or grades 1 through 12 and supported in
whole or in part by private tuition payments.
(4) Any educational institution or educational training that:
(A) is maintained or given by an employer or a group of
employers, without charge, for employees or for
individuals the employer anticipates employing;
(B) is maintained or given by a labor organization, without
charge, for its members or apprentices;
(C) offers exclusively instruction that is clearly
self-improvement, motivational, or avocational in intent
(including instruction in dance, music, or self-defense, and
private tutoring); or
(D) is a Montessori or nursery school.
(5) A privately endowed two (2) or four (4) year degree
granting institution that is regionally accredited and whose
principal campus is located in Indiana.
Chapter 3. State Financial Aid
Sec. 1. The commission, under IC 21-18-6-1, shall administer the
following:
(1) This article.
(2) IC 21-12.
(3) IC 21-13.
(4) IC 21-14.
(5) IC 21-16.
Chapter 4. Administration of Awards
Sec. 1. The purposes of this chapter are:
(1) to increase the opportunity to receive a higher education
for every person who resides in Indiana and who, though
being highly qualified and desiring to receive a higher
education, is deterred by financial considerations; and
(2) to accomplish the goal described in subdivision (1) by
establishing a system of state higher education awards that
will assist individuals in selecting and attending a qualified
public or private postsecondary educational institution or a
postsecondary credit bearing proprietary educational
institution.
Sec. 2. The commission shall exercise its functions under this
chapter without regard to an applicant's race, creed, sex, color,
national origin, or ancestry.
Sec. 3. For purposes of administering this chapter, the
commission shall do the following:
(1) Prepare and supervise the issuance of public information
concerning this chapter, IC 21-12-2, IC 21-12-3, IC 21-12-4,
and IC 21-12-5.
(2) Prescribe the form and regulate the submission of
applications for higher education awards and the
commission's programs.
(3) Conduct conferences and interviews with applicants as
appropriate.
(4) Determine the eligibility of applicants.
(5) Select qualified applicants.
(6) Determine the respective amounts of, and award, the
appropriate higher education awards, grants, and
scholarships.
(7) Determine eligibility for, and award, annual renewals of
higher education awards, grants, and scholarships.
(8) Act as the designated state agency for participation in any
federal program for reinsurance of student loans.
(9) Receive federal funds made available to the commission
for awards, grants, and scholarships, and disburse these funds
in the manner prescribed by federal law.
(10) One (1) time every year, submit a report to the legislative
council that provides data and statistical information
regarding the number of individuals who received assistance
under IC 21-12-6 and IC 21-12-6.5. The report made to the
legislative council must be in an electronic format under
IC 5-14-6.
Sec. 4. For purposes of administering this chapter, the
commission may do the following:
(1) Accept gifts, grants, devises, or bequests to provide grants,
awards, scholarships, loans, or other forms of financial aid to
students attending approved postsecondary educational
institutions.
(2) Enter into contracts, subject to IC 4-13-2, that the
commission determines are necessary to carry out the
commission's functions.
(3) Provide administrative or technical assistance to other
governmental or nongovernmental entities if the provision of
this assistance will increase the number and value of grants,
awards, scholarships, or loans available to students attending
approved postsecondary educational institutions.
(4) Sue and be sued in the name of the commission.
Sec. 5. For purposes of administering this chapter, if the
commission receives an offer of a gift, grant, devise, or bequest, the
commission may accept a stipulation on the use of the donated
funds. In this case, IC 21-12-3-11 (higher education award) and
IC 21-12-4-4 (freedom of choice grant) do not apply. Before
accepting a gift, grant, devise, or bequest, the commission shall
determine that the purposes for which the donor proposes to
provide funds are:
(1) lawful;
(2) in the state's best interests; and
(3) generally consistent with the commission's programs and
purposes.
If the commission agrees to a stipulation on the use of donated
funds, the commission and the donor, subject to approval by the
budget agency and the governor or the governor's designee, shall
execute an agreement.
Sec. 6. (a) This section applies if the commission agrees to
provide administrative or technical assistance to other
governmental or nongovernmental entities to increase the number
and value of grants, awards, scholarships, or loans available to
students attending approved postsecondary educational
institutions.
(b) The commission and the party to whom the assistance is to
be provided shall execute an agreement specifying:
(1) the assistance that is to be provided; and
(2) the charges, if any, that are to be assessed by the
commission for providing the assistance.
The commission may waive charges for administrative or technical
assistance under this section if the commission determines that a
waiver is in the best interest of the state. An agreement to provide
assistance must be approved by the budget agency and the
governor or the governor's designee.
Sec. 7. The commission may, subject to written advance notice,
inspect and audit the records of a postsecondary credit bearing
proprietary educational institution concerning a student grant
awarded under IC 21-12 or IC 21-13.
Sec. 8. (a) This section applies to a person:
(1) who is a student;
(2) who is a graduate of a high school located in Indiana or a
recipient of the state of Indiana general educational
development (GED) diploma under IC 20-10.1-12.1 (before its
repeal), IC 20-20-6 (before its repeal), or IC 22-4.1-18;
(3) who, on the date that eligibility is determined by the
commission, has resided in Indiana with a caretaker relative
who has been a resident of Indiana for at least four (4) years;
and
(4) whose legal parent:
(A) is currently; and
(B) has been for at least three (3) consecutive years;
a resident of Indiana.
(b) In determining the eligibility of a person to receive financial
aid administered by the commission under any law, the commission
shall use the residence or domicile of the person's caretaker
relative to determine the person's residence or domicile.
Sec. 9. The commission shall adopt rules under IC 4-22-2:
(1) to develop standards that govern the denial of assistance
to higher education award applicants and recipients under
IC 21-12-3-13;
(2) to implement IC 21-12-6, including:
(A) rules regarding the establishment of appeals
procedures for individuals who become disqualified from
the program under IC 21-12-6-9;
(B) notwithstanding IC 21-12-6-5, rules that may include
students who are in grades other than grade 6, 7, or 8 as
eligible students; and
(C) rules that allow a student described in IC 21-12-6-5(b)
to become an eligible student while the student is in high
school, if the student agrees to comply with the
requirements set forth in IC 21-12-6-5(a)(4)(B) through
IC 21-12-6-5(a)(4)(D) for not less than six (6) months after
graduating from high school;
(3) to implement IC 21-13-2, including rules governing the
enforcement of the agreements under IC 21-13-2-5;
(4) that are necessary to carry out IC 21-13-3, including rules
governing the enforcement of the agreements made under
IC 21-13-3-5; and
(5) to implement:
(A) IC 21-12-7; and
(B) IC 21-14-5.
Sec. 10. The commission may:
(1) make rules necessary to carry out its functions under this
chapter;
(2) appoint advisory boards it considers necessary to carry
out its responsibilities under this chapter;
(3) adopt rules under IC 4-22-2 to implement IC 21-14-5; and
(4) adopt rules under IC 4-22-2 and internal policy to
effectuate the purposes of IC 21-16-4.
Sec. 11. The commission may cooperate in developing training
programs concerning grant program requirements with the:
(1) commission on postsecondary proprietary education; or
(2) state workforce innovation council.
Chapter 5. Commission on Postsecondary Proprietary
Education
Sec. 1. The commission on postsecondary proprietary education
is established.
Sec. 2. (a) The commission on postsecondary proprietary
education consists of the following seven (7) members:
(1) The state superintendent or the superintendent's designee.
(2) The executive officer of the commission for higher
education or the executive officer's designee.
(3) Five (5) members appointed by the governor.
(b) The members appointed by the governor under subsection
(a) serve for a term of four (4) years.
(c) Not more than three (3) of the members appointed by the
governor may be members of one (1) political party.
(d) Of the five (5) members appointed by the governor:
(1) one (1) must have been engaged for a period of at least five
(5) years immediately preceding appointment in an executive
or a managerial position in a postsecondary proprietary
educational institution subject to IC 21-18.5-6;
(2) one (1) must have been engaged in administering or
managing an industrial employee training program for a
period of at least five (5) years immediately preceding
appointment; and
(3) three (3) must be representatives of the public at large who
are not representatives of the types of postsecondary credit
bearing proprietary educational institutions to be accredited.
For purposes of subdivision (3), an elected or appointed state or
local official or a member of a private or public school may not be
appointed as a representative of the public at large.
(e) An appointment to fill a vacancy occurring on the
commission on postsecondary proprietary education is for the
unexpired term.
Sec. 3. (a) A member of the commission on postsecondary
proprietary education who is not a state employee is entitled to the
minimum salary per diem provided by IC 4-10-11-2.1(b). The
member is also entitled to reimbursement for traveling expenses as
provided under IC 4-13-1-4 and other expenses actually incurred
in connection with the member's duties as provided in the state
policies and procedures established by the Indiana department of
administration and approved by the budget agency.
(b) Each member of the commission on postsecondary
proprietary education who is a state employee is entitled to
reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
Sec. 4. (a) The commission on postsecondary proprietary
education may select officers from the commission on
postsecondary proprietary education's membership as the
commission on postsecondary proprietary education considers
necessary.
(b) The commission on postsecondary proprietary education
may adopt reasonable rules under IC 4-22-2 to implement this
chapter and IC 21-18.5-6.
(c) The commission on postsecondary proprietary education:
(1) may meet as necessary upon call of the chairperson; and
(2) shall meet at least four (4) times a year.
Sec. 6. An associate commissioner of the commission (as defined
in IC 21-18.5-2-7) shall serve as the executive director of the
commission on postsecondary proprietary education.
Chapter 6. Postsecondary Credit Bearing Proprietary
Educational Institution Accreditation
Sec. 1. The general assembly recognizes that the private school
is an essential part of the educational system. It is the purpose of
this chapter to protect students, educational institutions, the
general public, and honest and ethical operators of private schools
from dishonest and unethical practices.
Sec. 2. A person may not do business as a postsecondary credit
bearing proprietary educational institution in Indiana without
having obtained accreditation under this chapter.
Sec. 3. Applications for accreditation under this chapter must
be filed with the commission on postsecondary proprietary
education and accompanied by an application fee of at least one
hundred dollars ($100) for processing the application and
evaluating the postsecondary credit bearing proprietary
educational institution.
Sec. 4. An application for accreditation under this chapter must
include at least the following information:
(1) The name and address of the postsecondary credit bearing
proprietary educational institution and the institution's
officers.
(2) The places where the courses are to be provided.
(3) The types of courses to be offered, the form of instruction
to be followed with the class, shop, or laboratory, and the
hours required for each curriculum.
(4) The form of certificate, diploma, or degree to be awarded.
(5) A statement of the postsecondary credit bearing
proprietary educational institution's finances.
(6) A description of the postsecondary credit bearing
proprietary educational institution's physical facilities,
including classrooms, laboratories, library, machinery, and
equipment.
(7) An explicit statement of policy with reference to:
(A) solicitation of students;
(B) payment and amount of student fees; and
(C) conditions under which students are entitled to a
refund in part or in full of fees paid, including a statement
concerning the existence of the career college student
assurance fund established under section 6 of this chapter.
(8) Provisions for liability insurance of students.
(9) Maximum student-teacher ratio to be maintained.
(10) Minimum requirements for instructional staff.
Sec. 5. The commission on postsecondary proprietary education
shall require each postsecondary credit bearing proprietary
educational institution to include in each curriculum catalog and
promotional brochure the following:
(1) A statement indicating that the postsecondary credit
bearing proprietary educational institution is regulated by the
commission on postsecondary proprietary education under
this chapter.
(2) The commission on postsecondary proprietary education's
mailing address and telephone number.
Sec. 6. (a) The career college student assurance fund is
established to provide indemnification to a student or an enrollee
of a postsecondary credit bearing proprietary educational
institution who suffers loss or damage as a result of:
(1) the failure or neglect of the postsecondary credit bearing
proprietary educational institution to faithfully perform all
agreements, express or otherwise, with the student, enrollee,
one (1) or both of the parents of the student or enrollee, or a
guardian of the student or enrollee as represented by the
application for the institution's accreditation and the
materials submitted in support of that application;
(2) the failure or neglect of the postsecondary credit bearing
proprietary educational institution to maintain and operate a
course or courses of instruction or study in compliance with
the standards of this chapter; or
(3) an agent's misrepresentation in procuring the student's
enrollment.
(b) The commission on postsecondary proprietary education
shall administer the fund.
(c) The expenses of administering the fund shall be paid from
money in the fund.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund but remains available to be used for
providing money for reimbursements allowed under this chapter.
(f) Upon the fund acquiring fifty thousand dollars ($50,000), the
balance in the fund must not become less than fifty thousand
dollars ($50,000). If:
(1) a claim against the fund is filed that would, if paid in full,
require the balance of the fund to become less than fifty
thousand dollars ($50,000); and
(2) the commission on postsecondary proprietary education
determines that the student is eligible for a reimbursement
under the fund;
the commission on postsecondary proprietary education shall
prorate the amount of the reimbursement to ensure that the
balance of the fund does not become less than fifty thousand
dollars ($50,000), and the student is entitled to receive that balance
of the student's claim from the fund as money becomes available in
the fund from contributions to the fund required under this
chapter.
(g) The commission on postsecondary proprietary education
shall ensure that all outstanding claim amounts described in
subsection (f) are paid as money in the fund becomes available in
the chronological order of the outstanding claims.
(h) A claim against the fund may not be construed to be a debt
of the state.
Sec. 7. (a) Except as otherwise provided in this section, each
postsecondary credit bearing proprietary educational institution
shall make quarterly contributions to the fund. The quarters begin
January 1, April 1, July 1, and October 1.
(b) For each quarter, each postsecondary credit bearing
proprietary educational institution shall make a contribution equal
to the STEP THREE amount derived under the following formula:
STEP ONE: Determine the total amount of tuition and fees
earned during the quarter.
STEP TWO: Multiply the STEP ONE amount by one-tenth of
one percent (0.1%).
STEP THREE: Add the STEP TWO amount and sixty dollars
($60).
(c) After June 30, 2012, upon the career college student
assurance fund achieving at least an initial balance of one million
dollars ($1,000,000), a postsecondary credit bearing proprietary
educational institution that contributes to the career college
student assurance fund when the initial quarterly contribution is
required under this chapter after the fund's establishment is not
required to make contributions to the fund.
(d) The commission on postsecondary proprietary education
shall determine the number of quarterly contributions required for
the career college student assurance fund to initially accumulate
one million dollars ($1,000,000).
(e) Except as provided in subsections (a), (b), and (f), a
postsecondary credit bearing proprietary educational institution
that begins making contributions to the career college student
assurance fund after the initial quarterly contribution as required
under this section shall make contributions to the fund for the same
number of quarters as determined by the commission on
proprietary education under subsection (d).
(f) If, after a career college student assurance fund acquires one
million dollars ($1,000,000), the balance in the fund becomes less
than five hundred thousand dollars ($500,000), all postsecondary
credit bearing proprietary educational institutions not required to
make contributions to the career college student assurance fund as
described in subsection (c) or (e) shall make contributions to the
career college student assurance fund for the number of quarters
necessary for the fund to accumulate one million dollars
($1,000,000).
Sec. 8. (a) Upon receipt of an application for accreditation under
this chapter, the commission on postsecondary proprietary
education shall make an investigation to determine the accuracy of
the statements in the application to determine if the postsecondary
credit bearing proprietary educational institution meets the
minimum standards for accreditation.
(b) During the investigation under subsection (a), the
commission on postsecondary proprietary education may grant a
temporary status of accreditation. The temporary status of
accreditation is sufficient to meet the requirements of this chapter
until a determination on accreditation is made.
Sec. 9. The cost of performing a team onsite investigation for
purposes of section 6 of this chapter shall be paid by the applicant
postsecondary credit bearing proprietary educational institution.
However, the total cost of an inspection, including room, board,
and mileage that does not require travel outside Indiana, may not
exceed one thousand dollars ($1,000) for any one (1) postsecondary
credit bearing proprietary educational institution.
Sec. 10. (a) A postsecondary credit bearing proprietary
educational institution shall maintain at least the following records
for each student:
(1) The program in which the student enrolls.
(2) The length of the program.
(3) The date of the student's initial enrollment in the program.
(4) A transcript of the student's academic progress.
(5) The amount of the student's tuition and fees.
(6) A copy of the enrollment agreement.
(b) Upon the request of the commission on postsecondary
proprietary education, a postsecondary credit bearing proprietary
educational institution shall submit the records described in
subsection (a) to the commission on postsecondary proprietary
education.
(c) If a postsecondary credit bearing proprietary educational
institution ceases operation, the postsecondary credit bearing
proprietary educational institution shall submit the records
described in subsection (a) to the commission on public records not
later than thirty (30) days after the institution ceases to operate.
Sec. 11. Full accreditation under this chapter may not be issued
unless and until the commission on postsecondary proprietary
education finds that the postsecondary credit bearing proprietary
educational institution meets minimum standards that are
appropriate to that type or class of postsecondary credit bearing
proprietary educational institution, including the following
minimum standards:
(1) The postsecondary credit bearing proprietary educational
institution has a sound financial structure with sufficient
resources for continued support.
(2) The postsecondary credit bearing proprietary educational
institution has satisfactory training or educational facilities
with sufficient tools, supplies, or equipment and the necessary
number of work stations or classrooms to adequately train,
instruct, or educate the number of students enrolled or
proposed to be enrolled.
(3) The postsecondary credit bearing proprietary educational
institution has an adequate number of qualified instructors or
teachers, sufficiently trained by experience or education, to
give the instruction, education, or training contemplated.
(4) The advertising and representations made on behalf of the
postsecondary credit bearing proprietary educational
institution to prospective students are truthful and free from
misrepresentation or fraud.
(5) The charge made for the training, instruction, or
education is clearly stated and based upon the services
rendered.
(6) The premises and conditions under which the students
work and study are sanitary, healthful, and safe according to
modern standards.
(7) The postsecondary credit bearing proprietary educational
institution has and follows a refund policy approved by the
commission on postsecondary proprietary education.
(8) The owner or chief administrator of the postsecondary
credit bearing proprietary educational institution is subject to
a background check by the commission on postsecondary
proprietary education and has not been convicted of a felony.
(9) The owner or chief administrator of the postsecondary
credit bearing proprietary educational institution has not
been the owner or chief administrator of a postsecondary
credit bearing proprietary educational institution that has
had its accreditation revoked or has been closed involuntarily
in the five (5) year period preceding the application for
accreditation. However, if the owner or chief administrator of
the postsecondary credit bearing proprietary educational
institution has been the owner or chief administrator of a
postsecondary credit bearing proprietary educational
institution that has had its accreditation revoked or has been
closed involuntarily more than five (5) years before the
application for accreditation, the commission on
postsecondary proprietary education may issue full
accreditation at the commission on postsecondary proprietary
education's discretion.
Sec. 12. (a) After an investigation and a finding that the
information in the application is true and the postsecondary credit
bearing proprietary educational institution meets the minimum
standards, the commission on postsecondary proprietary education
shall issue an accreditation to the postsecondary credit bearing
proprietary educational institution upon payment of an additional
fee of at least twenty-five dollars ($25). An applicant's market
research may not be considered or required by the commission on
postsecondary proprietary education as a condition for accrediting
or renewing the accreditation of or for approval of the programs
of a postsecondary credit bearing proprietary educational
institution.
(b) The commission on postsecondary proprietary education
may waive inspection of a postsecondary credit bearing
proprietary educational institution that has been accredited by an
accrediting unit whose standards are approved by the commission
on postsecondary proprietary education as meeting or exceeding
the requirements of this chapter.
(c) A valid license, approval to operate, or other form of
accreditation issued to a postsecondary credit bearing proprietary
educational institution by another state may be accepted, instead
of inspection, if:
(1) the requirements of that state meet or exceed the
requirements of this chapter; and
(2) the other state will, in turn, extend reciprocity to
postsecondary credit bearing proprietary educational
institutions accredited by the commission on postsecondary
proprietary education.
(d) An accreditation issued under this section expires one (1)
year following the accreditation's issuance.
(e) An accredited postsecondary credit bearing proprietary
educational institution may renew the institution's accreditation
annually upon:
(1) the payment of a fee of at least twenty-five dollars ($25);
and
(2) continued compliance with this chapter.
Sec. 13. Accreditation may be revoked by the commission on
postsecondary proprietary education:
(1) for cause upon notice and an opportunity for a hearing
before the commission on postsecondary proprietary
education; and
(2) for the accredited postsecondary credit bearing
proprietary educational institution failing to make the
appropriate quarterly contributions to the career college
student assurance fund not later than forty-five (45) days
after the end of a quarter.
Sec. 14. (a) A postsecondary credit bearing proprietary
educational institution, after notification that the institution's
accreditation has been refused, revoked, or suspended, may apply
for a hearing before the commission on postsecondary proprietary
education concerning the institution's qualifications. The
application for a hearing must be filed in writing with the
commission on postsecondary proprietary education not more than
thirty (30) days after receipt of notice of the denial, revocation, or
suspension.
(b) The commission on postsecondary proprietary education
shall give a hearing promptly and with not less than ten (10) days
notice of the date, time, and place. The postsecondary credit
bearing proprietary educational institution is entitled to be
represented by counsel and to offer oral and documentary evidence
relevant to the issue.
(c) Not more than fifteen (15) days after a hearing, the
commission on postsecondary proprietary education shall make
written findings of fact, a written decision, and a written order
based solely on the evidence submitted at the hearing, either
granting or denying accreditation to the postsecondary credit
bearing proprietary educational institution.
Sec. 15. A postsecondary credit bearing proprietary educational
institution's accreditation shall be suspended at any time if the
accredited postsecondary credit bearing proprietary educational
institution denies enrollment to a student or makes a distinction or
classification of students on the basis of race, color, or creed.
Sec. 16. A person may not do the following:
(1) Make, or cause to be made, a statement or representation,
oral, written, or visual, in connection with the offering or
publicizing of a course, if the person knows or should
reasonably know the statement or representation is false,
deceptive, substantially inaccurate, or misleading.
(2) Promise or guarantee employment to a student or
prospective student using information, training, or skill
purported to be provided or otherwise enhanced by a course,
unless the person offers the student or prospective student a
bona fide contract of employment agreeing to employ the
student or prospective student for a period of at least ninety
(90) days in a business or other enterprise regularly
conducted by the person in which that information, training,
or skill is a normal condition of employment.
(3) Do an act that constitutes part of the conduct of
administration of a course if the person knows, or should
reasonably know, that the course is being carried on by the
use of fraud, deception, or other misrepresentation.
Sec. 17. (a) A person representing a postsecondary credit
bearing proprietary educational institution doing business in
Indiana by offering courses may not sell a course or solicit students
for the institution unless the person first secures an agent's permit
from the commission on postsecondary proprietary education. If
the agent represents more than one (1) postsecondary credit
bearing proprietary educational institution, a separate agent's
permit must be obtained for each institution that the agent
represents.
(b) Upon approval of an agent's permit, the commission on
postsecondary proprietary education shall issue a pocket card to
the person that includes:
(1) the person's name and address;
(2) the name and address of the postsecondary credit bearing
proprietary educational institution that the person represents;
and
(3) a statement certifying that the person whose name appears
on the card is an authorized agent of the postsecondary credit
bearing proprietary educational institution.
(c) The application must be accompanied by a fee of at least ten
dollars ($10).
(d) An agent's permit is valid for one (1) year from the date of
its issue. An application for renewal must be accompanied by a fee
of at least ten dollars ($10).
(e) A postsecondary credit bearing proprietary educational
institution is liable for the actions of the institution's agents.
Sec. 18. (a) An application for an agent's permit must be
granted or denied by the commission not more than fifteen (15)
working days after the receipt of the application. If the commission
on postsecondary proprietary education has not completed a
determination with respect to the issuance of a permit under this
section within the fifteen (15) working day period, the commission
on postsecondary proprietary education shall issue a temporary
permit to the applicant. The temporary permit is sufficient to meet
the requirements of this chapter until a determination is made on
the application.
(b) A permit issued under this chapter may, upon ten (10) days
notice and after a hearing, be revoked by the commission on
postsecondary proprietary education:
(1) if the holder of the permit solicits or enrolls students
through fraud, deception, or misrepresentation; or
(2) upon a finding that the permit holder is not of good moral
character.
Sec. 19. The fact that the career college student assurance fund
exists does not limit or impair a right of recovery and the amount
of damages or other relief to which a plaintiff may be entitled.
Sec. 20. (a) This section applies to claims against the balance of
the career college student assurance fund.
(b) A student or an enrollee of a postsecondary credit bearing
proprietary educational institution who believes that the student or
enrollee has suffered loss or damage resulting from any of the
occurrences described in section 6(a) of this chapter may request
the commission on postsecondary proprietary education to file a
claim with the commission on postsecondary proprietary education
against the balance of the fund.
(c) A claim under this section is limited to a refund of the
claimant's applicable tuition and fees.
(d) All claims must be filed not later than five (5) years after the
occurrence resulting in the loss or damage to the claimant occurs.
(e) Upon the filing of a claim under this section, the commission
on postsecondary proprietary education shall review the records
submitted by the appropriate postsecondary credit bearing
proprietary educational institution described under section 12 of
this chapter and shall investigate the claim.
(f) Upon a determination by the commission on postsecondary
proprietary education that a claimant shall be reimbursed under
the career college student assurance fund, the commission on
postsecondary proprietary education shall prioritize the
reimbursements under the following guidelines:
(1) A student's educational loan balances.
(2) Federal grant repayment obligations of the student.
(3) Other expenses paid directly by the student.
Sec. 21. An obligation, negotiable or nonnegotiable, providing
for payment for a course or courses of instruction is void if the
postsecondary credit bearing proprietary educational institution
is not accredited to operate in Indiana.
Sec. 22. The issuance of an agent's permit or any accreditation
may not be considered to constitute approval of a course, a person,
or an institution. A representation to the contrary is a
misrepresentation.
Sec. 23. The prosecuting attorney of the county in which an
offense under this chapter occurred shall, at the request of the
commission on postsecondary proprietary education or on the
prosecuting attorney's own motion, bring any appropriate action,
including a mandatory and prohibitive injunction.
Sec. 24. An action of the commission on postsecondary
proprietary education concerning the issuance, denial, or
revocation of a permit or accreditation under this chapter is
subject to review under IC 4-21.5.
Sec. 25. (a) Except as provided in subsection (b), a person who
knowingly, intentionally, or recklessly violates this chapter
commits a Class B misdemeanor.
(b) A person who, with intent to defraud, represents the person
to be an agent of a postsecondary credit bearing proprietary
educational institution commits a Class C felony.
Sec. 26. (a) As used in this section, "fund" means the
postsecondary credit bearing proprietary educational institution
accreditation fund established by subsection (b).
(b) The postsecondary credit bearing proprietary educational
institution accreditation fund is established.
(c) The fund shall be administered by the commission (as
defined in IC 21-18.5-2-7.).
(d) Money in the fund at the end of a state fiscal year does not
revert to the general fund.
(e) All fees collected by the commission on postsecondary
proprietary education under this chapter shall be deposited in the
fund.
(f) Money in the fund shall be used by the commission on
postsecondary proprietary education to administer this chapter.
Sec. 27. The commission on postsecondary proprietary
education may adopt rules under IC 4-22-2 to implement this
chapter.
of the strategic plan described in subdivision (6).
(8) Advise the governor on the coordination of federal, state, and
local education and training programs and on the allocation of
state and federal funds in Indiana to promote effective services,
service delivery, and innovative programs.
(9) Administer the minority training grant program established by
section 11 of this chapter.
(10) Administer the back home in Indiana program established by
section 12 of this chapter.
(11) Any other function assigned to the council by the governor
with regard to the study and evaluation of Indiana's workforce
development delivery system.
(12) Administer postsecondary proprietary educational
institution accreditation under IC 22-4.1- 21.
nontransferable written authorization issued to a person by the
council to solicit a resident of Indiana to enroll in a course offered
or maintained by a postsecondary proprietary educational
institution.
Sec. 5. As used in this chapter, "application" means a written
request for accreditation or an agent's permit on forms supplied by
the council.
Sec. 6. As used in this chapter, "course" means a plan or
program of instruction or training, whether conducted in person,
by mail, or by any other method.
Sec. 7. As used in this chapter, "fund" refers to the student
assurance fund established by section 18 of this chapter.
Sec. 8. As used in this chapter, "person" means an individual, a
partnership, a limited liability company, an association, a
corporation, a joint venture, a trust, a receiver, or a trustee in
bankruptcy.
Sec. 9. As used in this chapter, "postsecondary proprietary
educational institution" means a person doing business in Indiana
by offering to the public, for a tuition, fee, or charge, instructional
or educational services or training in a technical, professional,
mechanical, business, or industrial occupation, in the recipient's
home, at a designated location, or by mail. The term does not
include the following:
(1) A postsecondary credit bearing proprietary educational
institution accredited by the commission on postsecondary
proprietary education under IC 21-18.5-6.
(2) A state educational institution or another educational
institution established by law and financed in whole or in part
by public funds.
(3) A postsecondary proprietary educational institution
approved or regulated by any other state regulatory board,
agency, or commission.
(4) An elementary or secondary school attended by students
in kindergarten or grades 1 through 12 and supported in
whole or in part by private tuition payments.
(5) Any educational institution or educational training that:
(A) is maintained or given by an employer or a group of
employers, without charge, for employees or for
individuals the employer anticipates employing;
(B) is maintained or given by a labor organization, without
charge, for its members or apprentices;
(C) offers exclusively instruction that is clearly
self-improvement, motivational, or avocational in intent
(including instruction in dance, music, or self-defense, and
private tutoring); or
(D) is a Montessori or nursery school.
(6) A privately endowed two (2) or four (4) year degree
granting institution that is regionally accredited and whose
principal campus is located in Indiana.
Sec. 10. (a) The council shall administer this chapter.
(b) The council may employ and fix compensation for necessary
administrative staff with the approval of the department.
(c) The council may adopt reasonable rules under IC 4-22-2 to
implement this chapter.
(d) The council may adopt and use a seal, the description of
which shall be filed with the office of the secretary of state, and
which may be used for the authentication of the acts of the council.
Sec. 11. The general assembly recognizes that the private school
is an essential part of the educational system. It is the purpose of
this chapter to protect students, educational institutions, the
general public, and honest and ethical operators of private schools
from dishonest and unethical practices.
Sec. 12. A person may not do business as a postsecondary
proprietary educational institution in Indiana without having
obtained accreditation under this chapter.
Sec. 13. Applications for accreditation under this chapter must
be filed with the council and accompanied by an application fee of
at least one hundred dollars ($100) for processing the application
and evaluating the postsecondary proprietary educational
institution.
Sec. 14. An application for accreditation under this chapter
must include at least the following information:
(1) The name and address of the postsecondary proprietary
educational institution and the institution's officers.
(2) The places where the courses are to be provided.
(3) The types of courses to be offered, the form of instruction
to be followed with the class, shop, or laboratory, and the
hours required for each curriculum.
(4) The form of certificate, diploma, or degree to be awarded.
(5) A statement of the postsecondary proprietary educational
institution's finances.
(6) A description of the postsecondary proprietary
educational institution's physical facilities, including
classrooms, laboratories, library, machinery, and equipment.
(7) An explicit statement of policy with reference to:
(A) solicitation of students;
(B) payment and amount of student fees; and
(C) conditions under which students are entitled to a
refund in part or in full of fees paid, including a statement
concerning the existence of the fund.
(8) Provisions for liability insurance of students.
(9) Maximum student-teacher ratio to be maintained.
(10) Minimum requirements for instructional staff.
Sec. 15. (a) This section is subject to section 16 of this chapter.
(b) An application for accreditation under this chapter must
include a surety bond in a penal sum determined under section 16
of this chapter. The bond must be executed by the applicant as
principal and by a surety company qualified and authorized to do
business in Indiana as a surety or cash bond company.
(c) The surety bond must be conditioned to provide
indemnification to any student or enrollee who suffers a loss or
damage as a result of:
(1) the failure or neglect of the postsecondary proprietary
educational institution to faithfully perform all agreements,
express or otherwise, with the student, enrollee, one (1) or
both of the parents of the student or enrollee, or a guardian of
the student or enrollee as represented by the application for
the institution's accreditation and the materials submitted in
support of the application;
(2) the failure or neglect of the postsecondary proprietary
educational institution to maintain and operate a course or
courses of instruction or study in compliance with the
standards of this chapter; or
(3) an agent's misrepresentation in procuring the student's
enrollment.
(d) A surety on a bond may be released after the surety has
made a written notice of the release directed to the council at least
thirty (30) days before the release. However, a surety may not be
released from the bond unless all sureties on the bond are released.
(e) A surety bond covers the period of the accreditation.
(f) Accreditation under this chapter shall be suspended if a
postsecondary proprietary educational institution is no longer
covered by a surety bond or if the postsecondary proprietary
educational institution fails to comply with section 16 of this
chapter. The council shall notify the postsecondary proprietary
educational institution in writing at least ten (10) days before the
release of the surety or sureties that the accreditation is suspended
until another surety bond is filed in the manner and amount
required under this chapter.
Sec. 16. (a) Subject to subsections (b), (d), and (e), the council
shall determine the penal sum of each surety bond required under
section 15 of this chapter based upon the following guidelines:
(1) A postsecondary proprietary educational institution that
has no annual gross tuition charges assessed for the previous
year shall secure a surety bond in the amount of twenty-five
thousand dollars ($25,000).
(2) If at any time the postsecondary proprietary educational
institution's projected annual gross tuition charges are more
than two hundred fifty thousand dollars ($250,000), the
institution shall secure a surety bond in the amount of fifty
thousand dollars ($50,000).
(b) After June 30, 2006, and except as provided in:
(1) section 19 of this chapter; and
(2) subsection (e);
and upon the fund achieving at least an initial one million dollar
($1,000,000) balance, a postsecondary proprietary educational
institution that contributes to the fund when the initial quarterly
contribution is required under this chapter after the fund's
establishment is not required to make contributions to the fund or
submit a surety bond.
(c) The council shall determine the number of quarterly
contributions required for the fund to initially accumulate one
million dollars ($1,000,000).
(d) Except as provided in section 19 of this chapter and
subsection (e), a postsecondary proprietary educational institution
that begins making contributions to the fund after the initial
quarterly contribution as required under this chapter is required
to make contributions to the fund for the same number of quarters
as determined by the council under subsection (c).
(e) If, after the fund acquires one million dollars ($1,000,000),
the balance in the fund becomes less than five hundred thousand
dollars ($500,000), all postsecondary proprietary educational
institutions not required to make contributions to the fund as
described in subsection (b) or (d) shall make contributions to the
fund for the number of quarters necessary for the fund to
accumulate one million dollars ($1,000,000).
Sec. 17. The council shall require each postsecondary
proprietary educational institution to include in each curriculum
catalog and promotional brochure the following:
(1) A statement indicating that the postsecondary proprietary
educational institution is regulated by the council under this
chapter.
(2) The council's mailing address and telephone number.
Sec. 18. (a) The student assurance fund is established to provide
indemnification to a student or an enrollee of a postsecondary
proprietary educational institution who suffers loss or damage as
a result of an occurrence described in section 15(c) of this chapter
if the occurrence transpired after June 30, 1992, and as provided
in section 35 of this chapter.
(b) The council shall administer the fund.
(c) The expenses of administering the fund shall be paid from
money in the fund.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund but remains available to be used for
providing money for reimbursements allowed under this chapter.
(f) Upon the fund acquiring fifty thousand dollars ($50,000), the
balance in the fund must not become less than fifty thousand
dollars ($50,000). If:
(1) a claim against the fund is filed that would, if paid in full,
require the balance of the fund to become less than fifty
thousand dollars ($50,000); and
(2) the council determines that the student is eligible for a
reimbursement under the fund;
the council shall prorate the amount of the reimbursement to
ensure that the balance of the fund does not become less than fifty
thousand dollars ($50,000), and the student is entitled to receive
that balance of the student's claim from the fund as money
becomes available in the fund from contributions to the fund
required under this chapter.
(g) The council shall ensure that all outstanding claim amounts
described in subsection (f) are paid as money in the fund becomes
available in the chronological order of the outstanding claims.
(h) A claim against the fund may not be construed to be a debt
of the state.
Sec. 19. (a) Subject to section 16 of this chapter, each
postsecondary proprietary educational institution shall make
quarterly contributions to the fund. The quarters begin January 1,
April 1, July 1, and October 1.
(b) For each quarter, each postsecondary proprietary
educational institution shall make a contribution equal to the STEP
THREE amount derived under the following formula:
STEP ONE: Determine the total amount of tuition and fees
earned during the quarter.
STEP TWO: Multiply the STEP ONE amount by one-tenth of
one percent (0.1%).
STEP THREE: Add the STEP TWO amount and sixty dollars
($60).
(c) Notwithstanding section 16 of this chapter, for a
postsecondary proprietary educational institution beginning
operation after September 30, 2004, the council, in addition to
requiring contributions to the fund, shall require the
postsecondary proprietary educational institution to submit a
surety bond in an amount determined by the council for a period
that represents the number of quarters required for the fund to
initially accumulate one million dollars ($1,000,000) as determined
under section 16(c) of this chapter.
Sec. 20. (a) Upon receipt of an application for accreditation
under this chapter, the council shall make an investigation to
determine the accuracy of the statements in the application to
determine if the postsecondary proprietary educational institution
meets the minimum standards for accreditation.
(b) During the investigation under subsection (a), the council
may grant a temporary status of accreditation. The temporary
status of accreditation is sufficient to meet the requirements of this
chapter until a determination on accreditation is made.
Sec. 21. The cost of performing a team onsite investigation for
purposes of section 20 of this chapter shall be paid by the applicant
postsecondary proprietary educational institution. However, the
total cost of an inspection, including room, board, and mileage that
does not require travel outside Indiana, may not exceed one
thousand dollars ($1,000) for any one (1) postsecondary
proprietary educational institution.
Sec. 22. (a) A postsecondary proprietary educational institution
shall maintain at least the following records for each student:
(1) The program in which the student enrolls.
(2) The length of the program.
(3) The date of the student's initial enrollment in the program.
(4) The student's period of attendance.
(5) The amount of the student's tuition and fees.
a felony.
(9) The owner or chief administrator of the postsecondary
proprietary educational institution has not been the owner or
chief administrator of a postsecondary proprietary
educational institution that has had its accreditation revoked
or has been closed involuntarily in the five (5) year period
preceding the application for accreditation. However, if the
owner or chief administrator of the postsecondary
proprietary educational institution has been the owner or
chief administrator of a postsecondary proprietary
educational institution that has had its accreditation revoked
or has been closed involuntarily more than five (5) years
before the application for accreditation, the council may issue
full accreditation at the council's discretion.
Sec. 24. (a) After an investigation and a finding that the
information in the application is true and the postsecondary
proprietary educational institution meets the minimum standards,
the council shall issue an accreditation to the postsecondary
proprietary educational institution upon payment of an additional
fee of at least twenty-five dollars ($25).
(b) The council may waive inspection of a postsecondary
proprietary educational institution that has been accredited by an
accrediting unit whose standards are approved by the council as
meeting or exceeding the requirements of this chapter.
(c) A valid license, approval to operate, or other form of
accreditation issued to a postsecondary proprietary educational
institution by another state may be accepted, instead of inspection,
if:
(1) the requirements of that state meet or exceed the
requirements of this chapter; and
(2) the other state will, in turn, extend reciprocity to
postsecondary proprietary educational institutions accredited
by the council.
(d) An accreditation issued under this section expires one (1)
year following the accreditation's issuance.
(e) An accredited postsecondary proprietary educational
institution may renew the institution's accreditation annually
upon:
(1) the payment of a fee of at least twenty-five dollars ($25);
and
(2) continued compliance with this chapter.
Sec. 25. Accreditation under this chapter may be revoked by the
council:
(1) for cause upon notice and an opportunity for a council
hearing; and
(2) for the accredited postsecondary proprietary educational
institution failing to make the appropriate quarterly
contributions to the fund not later than forty-five (45) days
after the end of a quarter.
Sec. 26. (a) A postsecondary proprietary educational institution,
after notification that the institution's accreditation has been
refused, revoked, or suspended, may apply for a hearing before the
council concerning the institution's qualifications. The application
for a hearing must be filed in writing with the council not more
than thirty (30) days after receipt of notice of the denial,
revocation, or suspension.
(b) The council shall give a hearing promptly and with not less
than ten (10) days notice of the date, time, and place. The
postsecondary proprietary educational institution is entitled to be
represented by counsel and to offer oral and documentary evidence
relevant to the issue.
(c) Not more than fifteen (15) days after a hearing, the council
shall make written findings of fact, a written decision, and a
written order based solely on the evidence submitted at the
hearing, either granting or denying accreditation to the
postsecondary proprietary educational institution.
Sec. 27. A postsecondary proprietary educational institution's
accreditation shall be suspended at any time if the accredited
postsecondary proprietary educational institution denies
enrollment to a student or makes a distinction or classification of
students on the basis of race, color, or creed.
Sec. 28. A person may not do the following:
(1) Make, or cause to be made, a statement or representation,
oral, written, or visual, in connection with the offering or
publicizing of a course, if the person knows or should
reasonably know the statement or representation is false,
deceptive, substantially inaccurate, or misleading.
(2) Promise or guarantee employment to a student or
prospective student using information, training, or skill
purported to be provided or otherwise enhanced by a course,
unless the person offers the student or prospective student a
bona fide contract of employment agreeing to employ the
student or prospective student for a period of at least ninety
(90) days in a business or other enterprise regularly
conducted by the person in which that information, training,
or skill is a normal condition of employment.
(3) Do an act that constitutes part of the conduct of
administration of a course if the person knows, or should
reasonably know, that the course is being carried on by the
use of fraud, deception, or other misrepresentation.
Sec. 29. (a) A person representing a postsecondary proprietary
educational institution doing business in Indiana by offering
courses may not sell a course or solicit students for the institution
unless the person first secures an agent's permit from the council.
If the agent represents more than one (1) postsecondary
proprietary educational institution, a separate agent's permit must
be obtained for each institution that the agent represents.
(b) Upon approval of an agent's permit, the council shall issue
a pocket card to the person that includes:
(1) the person's name and address;
(2) the name and address of the postsecondary proprietary
educational institution that the person represents; and
(3) a statement certifying that the person whose name appears
on the card is an authorized agent of the postsecondary
proprietary educational institution.
(c) The application must be accompanied by a fee of at least ten
dollars ($10).
(d) An agent's permit is valid for one (1) year from the date of
its issue. An application for renewal must be accompanied by a fee
of at least ten dollars ($10).
(e) A postsecondary proprietary educational institution is liable
for the actions of the institution's agents.
Sec. 30. (a) An application for an agent's permit must be
granted or denied by the council not more than fifteen (15)
working days after the receipt of the application. If the council has
not completed a determination with respect to the issuance of a
permit under this section within the fifteen (15) working day
period, the council shall issue a temporary permit to the applicant.
The temporary permit is sufficient to meet the requirements of this
chapter until a determination is made on the application.
(b) A permit issued under this chapter may, upon ten (10) days
notice and after a hearing, be revoked by the council:
(1) if the holder of the permit solicits or enrolls students
through fraud, deception, or misrepresentation; or
(2) upon a finding that the permit holder is not of good moral
character.
educational institution who believes that the student or enrollee has
suffered loss or damage resulting from any of the occurrences
described in section 15(c) of this chapter may request the council
to file a claim with the council against the balance of the fund. If
there is a surety bond in an amount sufficient to cover a claim or
part of a claim under this section, a claim against the balance of the
fund must be construed to be a claim against the surety bond first
to the extent that the amount of the surety bond exists and the
balance of the claim may be filed against the balance of the fund.
(c) A claim under this section is limited to a refund of the
claimant's applicable tuition and fees.
(d) All claims must be filed not later than five (5) years after the
occurrence that results in the loss or damage to the claimant.
(e) Upon the filing of a claim under this section, the council shall
review the records submitted by the appropriate postsecondary
proprietary educational institution described under section 22 of
this chapter and shall investigate the claim and attempt to resolve
the claim as described in section 34(d) of this chapter.
(f) Upon a determination by the council that a claimant shall be
reimbursed under the fund, the council shall prioritize the
reimbursements under the following guidelines:
(1) A student's educational loan balances.
(2) Federal grant repayment obligations of the student.
(3) Other expenses paid directly by the student.
Sec. 36. The prosecuting attorney of the county in which an
offense under this chapter occurred shall, at the request of the
council or on the prosecuting attorney's own motion, bring any
appropriate action, including a mandatory and prohibitive
injunction.
Sec. 37. An action of the council concerning the issuance, denial,
or revocation of a permit or accreditation under this chapter is
subject to review under IC 4-21.5.
Sec. 38. (a) Except as provided in subsection (b), a person who
knowingly, intentionally, or recklessly violates this chapter
commits a Class B misdemeanor.
(b) A person who, with intent to defraud, represents the person
to be an agent of a postsecondary proprietary educational
institution commits a Class C felony.
Sec. 39. (a) The proprietary educational institution accreditation
fund is established.
(b) The proprietary educational institution accreditation fund
shall be administered by the council.
(c) Money in the proprietary educational institution
accreditation fund at the end of a state fiscal year does not revert
to the general fund.
(d) All fees collected by the council under this chapter shall be
deposited in the proprietary educational institution accreditation
fund.
(e) Money in the proprietary educational institution
accreditation fund shall be used by the council to administer this
chapter.