Citations Affected: IC 9-13-2-188.5; IC 9-14-2-2; IC 9-24-6;
IC 9-27-6; IC 20-20-38; IC 21-7-13; IC 21-9-7-2; IC 21-11; IC 21-12;
IC 21-13; IC 21-14; IC 21-16; IC 21-17; IC 21-18-6-1; IC 21-18.5;
IC 22-4-18.1-3; IC 22-4.1; IC 25-21.8-4-2; IC 35-51-21-1.
Synopsis: Commission for higher education. Abolishes the state
student assistance commission (SSAC). Abolishes the commission on
proprietary education (COPE). Requires the commission for higher
education (commission) to administer the functions formerly
administered by SSAC. Provides that the commission is responsible for
accrediting a postsecondary credit bearing proprietary educational
institution. Changes the current COPE into an advisory board to advise
the commission and the commission's staff. Provides that the state
workforce innovation council is responsible for accrediting
postsecondary proprietary educational institutions that are non credit
bearing. 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.
Effective: July 1, 2012.
January 9, 2012, read first time and referred to Committee on Education.
A BILL FOR AN ACT to amend the Indiana Code concerning
education.
IC 22-4.1-21-9) or a postsecondary credit bearing proprietary
educational institution (as defined in IC 21-18.5-2-13) 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.
made to the plan available to:
(1) the governor;
(2) the general assembly;
(3) the department of workforce development;
(4) the commission for higher education;
(5) the council;
(6) the Indiana commission on proprietary education; state
workforce innovation council; and
(7) any other appropriate state or federal agency.
A plan or revised plan submitted under this section to the general
assembly must be in an electronic format under IC 5-14-6.
(c) The plan developed under this section must set forth specific
goals for secondary level public career and technical education and
must include the following:
(1) The preparation of each graduate for both employment and
further education.
(2) Accessibility of career and technical education to individuals
of all ages who desire to explore and learn for economic and
personal growth.
(3) Projected employment opportunities in various career and
technical education fields.
(4) A study of the supply of and the demand for a labor force
skilled in particular career and technical education areas.
(5) A study of technological and economic change affecting
Indiana.
(6) An analysis of the private career and education sector in
Indiana.
(7) Recommendations for improvement in the state career and
technical education program.
(8) The educational levels expected of career and technical
education programs proposed to meet the projected employment
needs.
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.
(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.
under IC 21-18.5-4;
that are not included in educational costs.
skills that the student needs to successfully achieve that
objective or continue in that course of study.
(b) This subsection applies to an individual who:
(1) meets the requirements set forth in subsection (a); and
(2) before the date that eligibility is determined by the
commission, has been placed by or with the consent of the
department of child services, by a court order, or by a licensed
child placing agency in:
(A) a foster family home;
(B) the home of a relative or other unlicensed caretaker;
(C) a child caring institution; or
(D) a group home.
The commission shall consider an individual to whom this subsection
applies as a full-need student under the commission's rules when
determining the eligibility of the individual to receive financial aid
administered by the commission under this chapter.
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.
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 proprietary
education, if appropriate.
IC 31-6-4-1(a)(1) through IC 31-6-4-1(a)(5) before their
repeal));
(E) timely apply, when the eligible student is a senior in high
school:
(i) for admission to an eligible institution; and
(ii) for any federal and state student financial assistance
available to the eligible student to attend an eligible
institution;
(F) achieve a cumulative grade point average upon graduation
of:
(i) at least 2.0, if the student graduates from high school
before July 1, 2014; and
(ii) at least 2.5, if the student graduates from high school
after June 30, 2014;
on a 4.0 grading scale (or its equivalent if another grading
scale is used) for courses taken during grades 9, 10, 11, and
12; and
(G) participate in an academic success program required under
the rules adopted by the commission, and the commission for
higher education, if the student initially enrolls in the program
after June 30, 2011.
(b) A student is also qualified to participate in the program if the
student:
(1) before or during grade 7 or grade 8, is placed by or with the
consent of the department of child services, by a court order, or by
a child placing agency in:
(A) a foster family home;
(B) the home of a relative or other unlicensed caretaker;
(C) a child caring institution; or
(D) a group home;
(2) agrees in writing, together with the student's caseworker (as
defined in IC 31-9-2-11), to the conditions set forth in subsection
(a)(4); and
(3) except as provided in subdivision (2), otherwise meets the
requirements of subsection (a).
(c) The commission may require that an applicant apply
electronically to participate in the program using an online Internet
application on the commission's web site.
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.
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).
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.
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.
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.
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.
approval or authorization by the commission to conduct business as a
postsecondary proprietary educational institution.
proprietary educational institutions under IC 21-18.5-5.
proprietary educational institution. These rights, liabilities,
penalties, crimes, and proceedings continue and shall be imposed
and enforced by the commission for higher education established
under IC 21-18-2-1.
(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 for
higher education established by IC 21-18-2-1.
(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 commission for higher
education established by IC 21-18-2-1 and the state workforce
innovation council established by IC 22-4-18.1-3 until the:
(1) commission for higher education adopts rules under
IC 4-22-2 to implement IC 21-18.5; or
(2) 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 for higher education established under
IC 21-18-2-1 if the accreditation pertains to a postsecondary
credit bearing proprietary educational institution (as defined
in IC 21-18.5-2-13); 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 for higher education and treated as if the proceedings
were initiated by the:
(1) commission for higher education established by
IC 21-18-2-1 for a proceeding pertaining to a postsecondary
credit bearing proprietary educational institution (as defined
in IC 21-18.5-2-13); 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 21-18.5-5, means
certification of a status of approval or authorization by the
commission to conduct business as a postsecondary credit bearing
proprietary educational institution.
Sec. 3. "Advisory board", for purposes of IC 21-18.5-6, means
the postsecondary credit bearing proprietary educational
institution advisory board established by IC 21-18.5-6-1.
Sec. 4. "Agent", for purposes of IC 21-18.5-5, 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. 5. "Agent's permit", for purposes of IC 21-18.5-5, means a
nontransferable written authorization issued to a person by the
commission to solicit a resident of Indiana to enroll in a course
offered or maintained by a postsecondary credit bearing
proprietary educational institution.
Sec. 6. "Application", for purposes of IC 21-18.5-5, means a
written request for accreditation or an agent's permit on forms
supplied by the commission.
Sec. 7. "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. 8. "Commission" means the commission for higher
education established by IC 21-18-2-1.
Sec. 9. "Course", for purposes of IC 21-18.5-5, means a plan or
program of instruction or training, whether conducted in person,
by mail, or by any other method.
Sec. 10. "Enrollment" means the establishment and
maintenance of an individual's status as an undergraduate student
in a postsecondary credit bearing proprietary educational
institution.
Sec. 11. "Higher education award" means a monetary award.
Sec. 12. "Person", for purposes of IC 21-18.5-5, 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. 13. (a) "Postsecondary credit bearing proprietary
educational institution" means:
(1) 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 has national accreditation recognized by the
United States Department of Education or is seeking and
progressing toward national accreditation recognized by the
United States Department of Education; or
(2) a two (2) or four (4) year degree granting and credit
bearing institution:
(A) that provides instructional or educational services or
training in a technical, professional, mechanical, business,
or industrial occupation;
(B) that has received either national or regional
accreditation recognized by the United States Department
of Education; and
(C) whose principal campus or national headquarters is
located outside of Indiana.
(b) The term does not include the following:
(1) A state educational institution or another 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 for higher
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 and Proprietary Credit Bearing
Postsecondary Educational Institution Accreditation
Sec. 1. The commission, under IC 21-18-6-1, shall administer the
following:
(1) This article.
(2) IC 21-12-2.
(3) IC 21-12-3.
(4) IC 21-12-4.
(5) IC 21-12-5.
(6) IC 21-16-2.
(7) IC 21-16-4.
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.
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 proprietary
educational institution concerning a student grant awarded under
IC 21-12-3, IC 21-12-4, or IC 21-12-5.
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 and the state workforce innovation
council may cooperate in developing training programs concerning
grant program requirements.
Chapter 5. 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 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, toilets, showers, and lavatories.
(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. 5. The commission 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 under this chapter.
(2) The commission's mailing address and telephone number.
Sec. 6. (a) Upon receipt of an application for accreditation under
this chapter, the commission 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 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. 7. 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. 8. (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) 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 commission, a postsecondary credit
bearing proprietary educational institution shall submit the
records described in subsection (a) to the commission.
(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 not later than thirty
(30) days after the institution ceases to operate.
Sec. 9. Full accreditation under this chapter may not be issued
unless and until the commission 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.
(8) The owner or chief administrator of the postsecondary
credit bearing proprietary educational institution 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 may issue full
accreditation at the commission's discretion.
Sec. 10. (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 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).
(b) The commission 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 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.
(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. 11. Accreditation under this chapter may be revoked by the
commission for cause upon notice and an opportunity for a
commission hearing.
Sec. 12. (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 concerning the institution's
qualifications. The application for a hearing must be filed in
writing with the commission not more than thirty (30) days after
receipt of notice of the denial, revocation, or suspension.
(b) The commission 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 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. 13. 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. 14. 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. 15. (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. 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 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. 16. (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
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 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:
(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. 17. 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. 18. 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. 19. The prosecuting attorney of the county in which an
offense under this chapter occurred shall, at the request of the
commission or on the prosecuting attorney's own motion, bring
any appropriate action, including a mandatory and prohibitive
injunction.
Sec. 20. An action of the commission concerning the issuance,
denial, or revocation of a permit or accreditation under this
chapter is subject to review under IC 4-21.5.
Sec. 21. (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. 22. All fees collected by the commission under this chapter
shall be deposited in the state general fund.
Chapter 6. Postsecondary Credit Bearing Proprietary
Educational Institution Advisory Board
Sec. 1. (a) The postsecondary credit bearing proprietary
educational institution advisory board is established to advise the
commission on matters concerning postsecondary credit bearing
proprietary educational institution accreditation.
(b) The advisory board consists of five (5) members appointed
by the governor.
(c) The members serve for a term of four (4) years.
(d) Not more than three (3) of the members may be members of
one (1) political party.
(e) Of the members:
(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 credit bearing
proprietary educational institution subject to IC 21-18.5-5;
(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.
(f) An appointment to fill a vacancy occurring on the advisory
board is for the unexpired term.
(g) The members appointed to the Indiana commission on
proprietary education by the governor under IC 21-17-2-2(a)(3),
before its repeal:
(1) become members of the advisory board; and
(2) may serve until the expiration of the term for which the
members were appointed.
This subsection expires July 1, 2017.
Sec. 2. (a) A member of the advisory board 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 advisory board 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. 3. (a) The advisory board may select officers from the
advisory board's membership as the advisory board considers
necessary.
(b) Subject to subsection (d), the advisory board may adopt
reasonable rules under IC 4-22-2 to implement IC 21-18.5-5.
(c) The advisory board:
(1) may meet as often as is necessary upon call of the
chairperson; and
(2) shall meet at least four (4) times a year.
(d) Before publishing notice of the intent to adopt a rule under
IC 4-22-2, the advisory board must submit the proposed rule to the
commission for approval. If the commission approves the rule, the
advisory board may publish notice of the intent to adopt the rule.
If the commission does not approve the rule, the advisory board
may not publish notice of the intent to adopt the rule.
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,
toilets, showers, and lavatories.
(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 career college 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. All fees collected by the council shall be deposited in the
state general fund.