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.
subject to approval by the budget agency with review of the budget committee. Requires the CHE to submit annual higher education award reports to the budget committee. Provides that the state workforce innovation council is responsible for accrediting postsecondary proprietary educational institutions that are non credit bearing. Establishes the office for career and technical schools within the state workforce innovation council. Provides that the market research of a postsecondary credit bearing proprietary educational institution may not be considered or required by the BPE as a condition for accrediting or renewing the accreditation of or for approval of the programs of a postsecondary credit bearing proprietary educational institution. Transfers proceedings pending before the Indiana commission on proprietary education on July 1, 2012, to the BPE for a proceeding pertaining to a postsecondary credit bearing proprietary educational institution or to the state workforce innovation council if the proceeding pertains to a postsecondary 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 BPE. 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 CHE 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, 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 board for 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.
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. board for 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)
board for 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. board for
proprietary education under IC 21-18.5-6.
(E) Is certified to the state student assistance commission by
the commission on proprietary education board for
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.
by the state student assistance commission for higher education
under IC 21-18.5-4;
that are not included in educational costs.
for proprietary education under IC 21-18.5-6; or
(iii) the Indiana state board of nursing; or
(iv) the state workforce innovation council under
IC 22-4.1-21.
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 board for
proprietary education established by IC 21-18.5-5-1, if
appropriate.
[EFFECTIVE JULY 1, 2012]: Sec. 6. (a) A student may apply to the
commission for a scholarship. To qualify for a scholarship, the student
must meet the following requirements:
(1) Be an eligible student who qualified to participate in the
program under section 5 of this chapter.
(2) Be a resident of Indiana.
(3) Be a graduate from a secondary school located in Indiana that
meets the admission criteria of an eligible institution and have
achieved a cumulative grade point average in high school of:
(A) at least 2.0 on a 4.0 grading scale, if the student is
expected to graduate from high school before July 1, 2014; and
(B) at least 2.5 on a 4.0 grading scale, if the student is
expected to graduate from high school after June 30, 2014.
(4) Have applied to attend and be accepted to attend as a full-time
student an eligible institution.
(5) Certify in writing that the student has:
(A) not illegally used controlled substances (as defined in
IC 35-48-1-9);
(B) not illegally consumed alcoholic beverages;
(C) not committed any other crime or a delinquent act (as
described in IC 31-37-1-2 or IC 31-37-2-2 through
IC 31-37-2-5 (or IC 31-6-4-1(a)(1) through IC 31-6-4-1(a)(5)
before their repeal));
(D) timely filed an application for other types of financial
assistance available to the student from the state or federal
government; and
(E) participate participated in an academic success program
required under the rules adopted by the commission. and the
commission for higher education.
(6) Submit to the commission all the information and evidence
required by the commission to determine eligibility as a
scholarship applicant.
(7) This subdivision applies only to applicants who initially enroll
in the program under section 5 of this chapter or IC 21-12-6.5-2
after June 30, 2011. For purposes of this chapter, applicants who
are enrolled in the program before July 1, 2011, will not have an
income or financial resources test applied to them when they
subsequently apply for a scholarship. Have a lack of financial
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.
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).
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. This chapter applies to an individual who:
(1) is receiving foster care;
(2) is in grades 9 through 12; and
(3) is a resident of Indiana as determined under IC 21-11-7;
IC 21-18.5-4-8;
at the time the individual applies for the twenty-first century scholars
program under IC 21-12-6.
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) Before the commission distributes grants
under this article to an approved postsecondary education institution
for the academic year beginning July 1, 2012, and before each
academic year thereafter, the approved postsecondary education
institution shall timely provide to the commission for higher education
the appropriate current and past student unit record data that is
necessary to adequately administer and evaluate the effectiveness of
the award and scholarship programs provided under this article. The
commission shall use the data for its student information system.
(b) Before the academic year beginning July 1, 2012, and before
each academic year thereafter, the commission, for higher education,
in consultation with Independent Colleges of Indiana, shall collect
other appropriate student data on all students attending public, private,
and proprietary institutions to allow the commission for higher
education to develop, update, and implement a long range plan for
postsecondary education.
proportion to the number of minority students enrolled at each eligible
institution based upon the most recent information received from the
commission for higher education. concerning:
(1) the number of minority students enrolled at each eligible
institution; and
(2) the number of individuals who are:
(A) enrolled at each eligible institution; and
(B) pursuing a course of study that would enable the
student, upon graduation, to be:
(i) licensed to teach special education in an accredited
school; or
(ii) licensed to practice occupational therapy or physical
therapy in an accredited school, in a vocational
rehabilitation center under IC 12-12-1-4.1(a)(1), or in a
community mental retardation or other developmental
disabilities center under IC 12-29 as part of the special
education program.
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.
senior citizens under this chapter.
(4) Any other pertinent information required by the commission.
institution's qualified status.
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
board for 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 board for 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 board for 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
committee that provides data and statistical information
regarding the number of individuals who received assistance
under IC 21-12, IC 21-13, and IC 21-14.
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:
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) board for proprietary education; or
(2) state workforce innovation council.
Chapter 5. Board for Proprietary Education
Sec. 1. The board for proprietary education is established.
Sec. 2. (a) The board for 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 the same 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;
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 board for 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 board for 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
board for proprietary education under this chapter.
(2) The board for 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 board for 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 board for proprietary education determines that the
student is eligible for a reimbursement under the fund;
the board for 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 board for 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 five hundred
thousand dollars ($500,000), 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 board for proprietary education shall determine the
number of quarterly contributions required for the career college
student assurance fund to initially accumulate five hundred
thousand dollars ($500,000).
(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 board for proprietary
education under subsection (d).
(f) If, after a career college student assurance fund acquires five
hundred thousand dollars ($500,000), the balance in the fund
becomes less than two hundred fifty thousand dollars ($250,000),
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 five hundred thousand dollars ($500,000).
Sec. 8. (a) Upon receipt of an application for accreditation under
this chapter, the board for 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 board for
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 8 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 board for proprietary education, a
postsecondary credit bearing proprietary educational institution
shall submit the records described in subsection (a) to the board
for 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 board for 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
board for proprietary education.
(8) The owner or chief administrator of the postsecondary
credit bearing proprietary educational institution is subject to
a background check by the board for 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 board for proprietary
education may issue full accreditation at the board for
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 board for
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 board for 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 board for 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 board for 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 board for
proprietary education:
(1) for cause upon notice and an opportunity for a hearing
before the board for 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 board for proprietary education
concerning the institution's qualifications. The application for a
hearing must be filed in writing with the board for proprietary
education not more than thirty (30) days after receipt of notice of
the denial, revocation, or suspension.
(b) The board for 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 board for
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 board for 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 board for
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 board for proprietary education not more
than fifteen (15) working days after the receipt of the application.
If the board for 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 board for
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 board for 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 board for proprietary education to file a claim with the board
for 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 board for
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 board for
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
board for 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 board for 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 board for proprietary education
under this chapter shall be deposited in the fund.
(f) Money in the fund shall be used by the board for
postsecondary proprietary education to administer this chapter.
Sec. 27. The board for proprietary education may adopt rules
under IC 4-22-2 to implement this chapter.
of coordinating the services and use of funds and resources
consistent with the laws and regulations governing the particular
applicable federal programs.
(2) Advise the governor on:
(A) the development and implementation of state and local
standards and measures; and
(B) the coordination of the standards and measures;
concerning the applicable federal programs.
(3) Perform the duties as set forth in federal law of the particular
advisory bodies for applicable federal programs described in
section 4 of this chapter.
(4) Identify the workforce needs in Indiana and recommend to the
governor goals to meet the investment needs.
(5) Recommend to the governor goals for the development and
coordination of the human resource system in Indiana.
(6) Prepare and recommend to the governor a strategic plan to
accomplish the goals developed under subdivisions (4) and (5).
(7) Monitor the implementation of and evaluate the effectiveness
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.
to this chapter.
Sec. 2. As used in this chapter, "accreditation" means
certification of a status of approval or authorization by the council
to conduct business as a postsecondary proprietary educational
institution.
Sec. 3. As used in this chapter, "agent" 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 proprietary
educational institution; or
(2) otherwise holds the person out to the residents of Indiana
as representing a postsecondary proprietary educational
institution.
Sec. 4. As used in this chapter, "agent's permit" means a
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 board for 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 office for career and technical schools is
established to carry out the responsibilities of the council under
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.
(6) A copy of the enrollment agreement.
(b) Upon the request of the council, a postsecondary proprietary
educational institution shall submit the records described in
subsection (a) to the council.
(c) If a postsecondary proprietary educational institution ceases
operation, the postsecondary proprietary educational institution
shall submit the records described in subsection (a) to the council
not later than thirty (30) days after the institution ceases to
operate.
Sec. 23. Full accreditation under this chapter may not be issued
unless and until the council finds that the postsecondary
proprietary educational institution meets minimum standards that
are appropriate to that type or class of postsecondary proprietary
educational institution, including the following minimum
standards:
(1) The postsecondary proprietary educational institution has
a sound financial structure with sufficient resources for
continued support.
(2) The postsecondary 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 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 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 proprietary educational institution has
and follows a refund policy approved by the council.
(8) The owner or chief administrator of the postsecondary
proprietary educational institution has not been convicted of
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.
Sec. 31. The fact that a bond is in force or that the 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 under
this chapter.
Sec. 32. An obligation, negotiable or nonnegotiable, providing
for payment for a course or courses of instruction is void if the
postsecondary proprietary educational institution is not accredited
to operate in Indiana.
Sec. 33. 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. 34. (a) This section applies to claims against the surety bond
of a postsecondary proprietary educational institution.
(b) A student who believes that the student is suffering 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 against
the surety of the postsecondary proprietary educational institution
or agent.
(c) The request must state the grounds for the claim and must
include material substantiating the claim.
(d) The council shall investigate all claims submitted to the
council and attempt to resolve the claims informally. If the council
determines that a claim is valid, and an informal resolution cannot
be made, the council shall submit a formal claim to the surety.
(e) A claim against the surety bond may not be filed by the
council unless the student's request under subsection (b) is
commenced not more than five (5) years after the date on which
the loss or damage occurred.
(f) If the amount of the surety bond is insufficient to cover all or
part of the claim, a claim for the balance of the claim against the
surety bond in the amount that is insufficient must be construed to
be a claim against the balance of the fund under section 35 of this
chapter.
Sec. 35. (a) This section applies:
(1) to claims against the balance of the fund; and
(2) in cases in which a student or an enrollee of a
postsecondary proprietary educational institution is protected
by both a surety bond and the balance of the fund, only after
a claim against the surety bond exceeds the amount of the
surety bond.
(b) A student or an enrollee of a postsecondary proprietary
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.
system).
IC 22-4-19-6 (Concerning unemployment compensation system).
IC 22-4-29-14 (Concerning unemployment compensation system).
IC 22-4-34-3 (Concerning unemployment compensation system).
IC 22-4-34-4 (Concerning unemployment compensation system).
IC 22-4-34-5 (Concerning unemployment compensation system).
IC 22-4.1-4-4 (Concerning department of workforce
development).
IC 22-4.1-21-38 (Concerning postsecondary proprietary
educational institution accreditation).
IC 22-5-1-1 (Concerning unlawful labor practices).
IC 22-6-2-13 (Concerning labor relations).
IC 22-7-1-3 (Concerning labor organizations).
IC 22-8-1.1-24.2 (Concerning occupational health and safety).
IC 22-8-1.1-49 (Concerning occupational health and safety).
IC 22-9.5-10-1 (Concerning Indiana fair housing).
IC 22-11-14-3 (Concerning building and safety regulations).
IC 22-11-14-6 (Concerning building and safety regulations).
IC 22-11-14.5-9 (Concerning building and safety regulations).
IC 22-11-14.5-10 (Concerning building and safety regulations).
IC 22-11-14.5-11 (Concerning building and safety regulations).
IC 22-11-14.5-12 (Concerning building and safety regulations).
IC 22-11-15-6 (Concerning building and safety regulations).
IC 22-11-17-3 (Concerning building and safety regulations).
IC 22-11-17-4 (Concerning building and safety regulations).
IC 22-11-18-5 (Concerning building and safety regulations).
IC 22-11-20-6 (Concerning building and safety regulations).
IC 22-15-4-7 (Concerning building and equipment laws).
IC 22-15-7-9 (Concerning building and equipment laws).
board for proprietary education as established by
IC 21-18.5-5-1, as added by this act.
(3) Study issues relating to the career college student
assurance fund established in IC 21-18.5-6-6, as added by this
act.
(4) Study any other issue pertaining to the accreditation of a
postsecondary credit bearing proprietary educational
institution, as defined in IC 21-18.5-2-12, as added by this act,
or a postsecondary proprietary educational institution, as
defined in IC 22-4.1-21-9, as added by this act, that the
legislative council determines is appropriate.
(c) If the topics described in subsection (b) are assigned to a
committee under subsection (b), the committee shall, not later than
November 1, 2012, issue a final report to the legislative council
concerning the findings and recommendations of the committee
concerning the topics described in subsection (b).
(d) This SECTION expires December 31, 2012.