IC 21-18.5-6-2
Accreditation
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-3
Applications; fee
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-4
Applications; contents
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-5
Curriculum catalog and promotional brochure; contents
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-6
Career college student assurance fund; administration
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-7
Quarterly contributions to fund; determination
     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).
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-8
Investigation
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-9
Inspection fee
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-10
Student records; contents; surrender to board for proprietary education
     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.

IC 21-18.5-6-11
Accreditation standards
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-12
Issuance of accreditation
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-13
Revocation
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-14
Hearing
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-15
Suspension
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-16
Representations
     Sec. 16. A person may not do the following:

IC 21-18.5-6-17
Agent's permits; liability of institution as principal
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-18
Temporary permit

IC 21-18.5-6-19
Remedy; damages or other relief
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-20
Claims against balance of career college student assurance fund; determination; priorities
     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:

IC 21-18.5-6-21
Remedy; void contracts
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-22
Misrepresentation
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-23
Relief; injunction
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-24
Adjudication
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-25
Violations
     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.
As added by P.L.107-2012, SEC.58.

IC 21-18.5-6-26
Establishment of postsecondary credit bearing proprietary educational accreditation fund; collection of fees

IC 21-18.5-6-27
Rules
     Sec. 27. The board for proprietary education may adopt rules under IC 4-22-2 to implement this chapter.
As added by P.L.107-2012, SEC.58.