Florida Senate - 2016              PROPOSED COMMITTEE SUBSTITUTE
       Bill No. CS for SB 800
       
       
       
       
       
                               Ì380416!Î380416                          
       
       576-03411-16                                                    
       Proposed Committee Substitute by the Committee on Appropriations
       (Appropriations Subcommittee on Education)
    1                        A bill to be entitled                      
    2         An act relating to independent postsecondary
    3         educational institutions; amending s. 1005.04, F.S.;
    4         requiring that certain institutions include specified
    5         information relating to student fees and costs in a
    6         disclosure to prospective students; creating s.
    7         1005.11, F.S.; requiring the Commission for
    8         Independent Education to annually prepare an
    9         accountability report by a specified date; requiring
   10         licensed institutions to annually provide certain data
   11         to the commission by a specified date and authorizing
   12         administrative fines for an institution that fails to
   13         timely submit the data; requiring placement rates to
   14         be determined using a specified methodology; requiring
   15         the commission to establish a common set of data
   16         definitions; requiring the commission to establish
   17         certain benchmarks by rule; providing for the
   18         designation of certain licensed institutions as “high
   19         performing”; amending s. 1005.21, F.S.; revising the
   20         commission’s membership; limiting the terms of
   21         commission members; amending s. 1005.22, F.S.;
   22         requiring the commission to approve an annual budget;
   23         providing for the review of certain complaints
   24         concerning institutions or programs which are not
   25         closed within a specified time; authorizing the
   26         commission to prohibit the enrollment of new students,
   27         or limit the number of students in a program at, a
   28         licensed institution under certain circumstances;
   29         amending s. 1005.31, F.S.; revising the commission’s
   30         evaluation standards for licensure of an institution;
   31         requiring certain institutions to post a surety bond
   32         or similar financial security for specified purposes;
   33         requiring the commission to adopt rules; requiring the
   34         commission to examine an application for licensure and
   35         take certain actions within a specified period;
   36         amending s. 1005.32, F.S.; deleting a provision
   37         authorizing an institution that is a Florida
   38         corporation to apply for licensure by means of
   39         accreditation; requiring institutions granted
   40         licensure through accreditation to file a retention
   41         and completion management plan; amending s. 1005.36,
   42         F.S.; revising the criminal penalty for the unlawful
   43         closure of certain institutions; requiring the
   44         commission to create a Closed Institution Panel;
   45         providing membership and duties of the panel;
   46         providing that the panel’s activities be conducted at
   47         the expense of certain institutions; amending s.
   48         1005.37, F.S.; requiring the commission to annually
   49         determine fees to support the Student Protection Fund;
   50         providing that fees may not be collected under certain
   51         circumstances; amending s. 1005.39, F.S.; requiring
   52         the commission to determine whether certain personnel
   53         of licensed institutions are qualified and require
   54         certain personnel to complete continuing education and
   55         training; requiring the commission to annually verify
   56         that certain personnel have completed certain training
   57         by a specified date; authorizing continuing education
   58         to be provided by licensed institutions under certain
   59         circumstances; requiring certain evidence be included
   60         in initial or renewal application forms provided by
   61         the commission; providing an effective date.
   62          
   63  Be It Enacted by the Legislature of the State of Florida:
   64  
   65         Section 1. Subsection (1) of section 1005.04, Florida
   66  Statutes, is amended to read:
   67         1005.04 Fair consumer practices.—
   68         (1) Every institution that is under the jurisdiction of the
   69  commission or is exempt from the jurisdiction or purview of the
   70  commission pursuant to s. 1005.06(1)(c) or (f) and that either
   71  directly or indirectly solicits for enrollment any student
   72  shall:
   73         (a) Disclose to each prospective student a statement of the
   74  purpose of such institution, its educational programs and
   75  curricula, a description of its physical facilities, its status
   76  regarding licensure, its fee schedule, including all fees and
   77  costs that will be incurred by a student for completion of a
   78  program at the institution, and policies regarding retaining
   79  student fees if a student withdraws, and a statement regarding
   80  the transferability of credits to and from other institutions.
   81  The institution shall make the required disclosures in writing
   82  at least 1 week prior to enrollment or collection of any tuition
   83  from the prospective student. The required disclosures may be
   84  made in the institution’s current catalog;
   85         (b) Use a reliable method to assess, before accepting a
   86  student into a program, the student’s ability to complete
   87  successfully the course of study for which he or she has
   88  applied;
   89         (c) Inform each student accurately about financial
   90  assistance and obligations for repayment of loans; describe any
   91  employment placement services provided and the limitations
   92  thereof; and refrain from promising or implying guaranteed
   93  placement, market availability, or salary amounts;
   94         (d) Provide to prospective and enrolled students accurate
   95  information regarding the relationship of its programs to state
   96  licensure requirements for practicing related occupations and
   97  professions in Florida;
   98         (e) Ensure that all advertisements are accurate and not
   99  misleading;
  100         (f) Publish and follow an equitable prorated refund policy
  101  for all students, and follow both the federal refund guidelines
  102  for students receiving federal financial assistance and the
  103  minimum refund guidelines set by commission rule;
  104         (g) Follow the requirements of state and federal laws that
  105  require annual reporting with respect to crime statistics and
  106  physical plant safety and make those reports available to the
  107  public; and
  108         (h) Publish and follow procedures for handling student
  109  complaints, disciplinary actions, and appeals.
  110         Section 2. Section 1005.11, Florida Statutes, is created to
  111  read:
  112         1005.11Accountability for institutions licensed by the
  113  Commission for Independent Education.—
  114         (1)By March 15 of each year, the commission shall prepare
  115  an annual accountability report for licensed institutions. The
  116  report must contain, at a minimum, the graduation rates,
  117  including the number of graduates by program, retention rates,
  118  and placement rates for all licensed institutions.
  119         (2)By November 30 of each year, each licensed institution
  120  shall provide data to the commission in a format prescribed by
  121  the commission. Placement rates shall be determined using
  122  Florida Education and Training Placement Information Program
  123  methodology. The commission shall establish a common set of data
  124  definitions that are consistent with those used by the United
  125  States Department of Education for institutional reporting
  126  purposes.
  127         (3)The commission shall impose an administrative fine of
  128  not more than $1,000 when a licensed institution fails to timely
  129  submit the required data to the commission pursuant to this
  130  section. Administrative fines collected under this subsection
  131  shall be deposited into the Student Protection Fund.
  132         (4)The commission shall establish by rule performance
  133  benchmarks to identify high-performing institutions licensed by
  134  the commission. Licensed institutions with graduation rates,
  135  retention rates, and placement rates equal to or higher than the
  136  average rates of all Florida universities, colleges, or career
  137  centers, as appropriate, may receive and use the designation of
  138  “high performing.”
  139         Section 3. Paragraphs (c) and (d) of subsection (2) and
  140  subsection (3) of section 1005.21, Florida Statutes, are amended
  141  to read:
  142         1005.21 Commission for Independent Education.—
  143         (2) The Commission for Independent Education shall consist
  144  of seven members who are residents of this state. The commission
  145  shall function in matters concerning independent postsecondary
  146  educational institutions in consumer protection, program
  147  improvement, and licensure for institutions under its purview.
  148  The Governor shall appoint the members of the commission who are
  149  subject to confirmation by the Senate. The membership of the
  150  commission shall consist of:
  151         (c) One member who is an employer of graduates of
  152  institutions licensed by the commission. The member may not have
  153  any other relationship with an institution subject to licensure
  154  by the commission except for his or her status as an employer of
  155  graduates of the institution from a public school district or
  156  Florida College System institution who is an administrator of
  157  career education.
  158         (d) One member who is a graduate of an institution subject
  159  to licensure by the commission. The member may not have any
  160  other relationship with an institution subject to licensure by
  161  the commission except for his or her status as an alumnus
  162  representative of a college that meets the criteria of s.
  163  1005.06(1)(f).
  164         (3) The members of the commission shall be appointed to 3
  165  year terms. Members may serve no more than three consecutive
  166  terms or and until their successors are appointed and qualified,
  167  whichever occurs first. If a vacancy on the commission occurs
  168  before the expiration of a term, the Governor shall appoint a
  169  successor to serve the unexpired portion of the term.
  170         Section 4. Paragraphs (e) and (k) of subsection (1) of
  171  section 1005.22, Florida Statutes, are amended, and paragraph
  172  (j) is added to subsection (2) of that section, to read:
  173         1005.22 Powers and duties of commission.—
  174         (1) The commission shall:
  175         (e) Administer the provisions of this chapter. To this end,
  176  the commission has the following administrative powers and
  177  responsibilities:
  178         1. The commission shall adopt rules pursuant to ss.
  179  120.536(1) and 120.54 for the operation and establishment of
  180  independent postsecondary educational institutions. The
  181  commission shall submit the rules to the State Board of
  182  Education for approval or disapproval. If the state board does
  183  not act on a rule within 60 days after receiving it, the rule
  184  shall be filed immediately with the Department of State.
  185         2. The commission shall approve and submit an annual budget
  186  to the State Board of Education.
  187         3. The commission shall transmit all fees, donations, and
  188  other receipts of money to the Institutional Assessment Trust
  189  Fund.
  190         4. The commission shall expend funds as necessary to assist
  191  in the application and enforcement of its powers and duties. The
  192  Chief Financial Officer shall pay out all moneys and funds as
  193  directed under this chapter upon vouchers approved by the
  194  Department of Education for all lawful purposes necessary to
  195  administering this chapter. The commission shall make annual
  196  reports to the State Board of Education showing in detail
  197  amounts received and all expenditures. The commission shall
  198  include in its annual report to the State Board of Education a
  199  statement of its major activities during the period covered by
  200  the report.
  201         (k) Establish and publicize the procedures for receiving
  202  and responding to complaints from students, faculty, and others
  203  concerning institutions or programs under the purview of the
  204  commission, and keep records of such complaints in order to
  205  determine the frequency and nature of complaints with respect to
  206  specific institutions of higher education. Complaints not closed
  207  within 90 days shall be reviewed by a committee appointed by the
  208  commission.
  209         (2) The commission may:
  210         (j)Prohibit a licensed institution from enrolling new
  211  students, or limit the number of students in a program at a
  212  licensed institution, based on the institution’s performance.
  213         Section 5. Subsections (5) through (16) of section 1005.31,
  214  Florida Statutes, are renumbered as subsections (6) through
  215  (17), respectively, subsection (2) and present subsection (6)
  216  are amended, and a new subsection (5) is added to that section,
  217  to read:
  218         1005.31 Licensure of institutions.—
  219         (2) The commission shall develop minimum standards by which
  220  to evaluate institutions for licensure. These standards must
  221  include, at a minimum, at least the institution’s: name,
  222  financial stability, purpose, administrative organization,
  223  admissions and recruitment, educational programs and curricula,
  224  retention and, completion, including a retention and completion
  225  management plan, career placement, faculty, learning resources,
  226  student personnel services, physical plant and facilities,
  227  publications, and disclosure statements about the status of the
  228  institution with respect to professional certification and
  229  licensure. The commission may adopt rules to ensure that
  230  institutions licensed under this section meet these standards in
  231  ways that are appropriate to achieve the stated intent of this
  232  chapter, including provisions for nontraditional or distance
  233  education programs and delivery.
  234         (5)The commission may require institutions that do not
  235  provide sufficient evidence of financial stability at the time
  236  of application for a provisional license or that are dependent
  237  upon financial resources located outside of the United States to
  238  post and maintain a surety bond to assist each enrolled student
  239  in completing his or her program of enrollment in the event that
  240  the institution closes before receiving its first annual
  241  licensure renewal. In lieu of a surety bond, the commission may
  242  require an institution to establish and maintain a cash deposit
  243  escrow account or an irrevocable letter of credit payable to the
  244  commission in an amount not to exceed 50 percent of the
  245  institution’s projected revenue for its first year. The
  246  commission shall adopt rules to implement this subsection.
  247         (7)(6) The commission shall ensure through an investigative
  248  process that applicants for licensure meet the standards as
  249  defined in rule. Within 60 days after receipt of an application,
  250  the commission shall examine the application, notify the
  251  applicant of any apparent errors or omissions, and request any
  252  necessary additional information from the applicant. When the
  253  investigative process is not completed within the time set out
  254  in s. 120.60(1) and the commission has reason to believe that
  255  the applicant does not meet licensure standards, the commission
  256  or the executive director of the commission may issue a 90-day
  257  licensure delay, which shall be in writing and sufficient to
  258  notify the applicant of the reason for the delay. The provisions
  259  of this subsection shall control over any conflicting provisions
  260  of s. 120.60(1).
  261         Section 6. Paragraph (e) of subsection (1) and subsection
  262  (3) of section 1005.32, Florida Statutes, are amended to read:
  263         1005.32 Licensure by means of accreditation.—
  264         (1) An independent postsecondary educational institution
  265  that meets the following criteria may apply for a license by
  266  means of accreditation from the commission:
  267         (e) The institution is a Florida corporation.
  268         (3) The commission may not require an institution granted a
  269  license by means of accreditation to submit reports that differ
  270  from the reports required by its accrediting association, except
  271  that each institution must file with the commission an annual
  272  audit report and a retention and completion management plan
  273  pursuant to s. 1005.31. The institution must also follow the
  274  commission’s requirements for orderly closing, including
  275  provisions for trainout or refunds and arranging for the proper
  276  disposition of student and institutional records.
  277         Section 7. Subsections (3) and (4) of section 1005.36,
  278  Florida Statutes, are renumbered as subsections (4) and (5),
  279  respectively, subsection (2) is amended, and a new subsection
  280  (3) is added to that section, to read:
  281         1005.36 Institutional closings.—
  282         (2) At least 30 days before prior to closing an
  283  institution, its owners, directors, or administrators shall
  284  notify the commission in writing of the closure of the
  285  institution. The owners, directors, and administrators must
  286  organize an orderly closure of the institution, which means at
  287  least providing for the completion of training of its students.
  288  The commission must approve any such plan. An owner, director,
  289  or administrator who fails to notify the commission at least 30
  290  days before prior to the institution’s closure, or who fails to
  291  organize the orderly closure of the institution and the trainout
  292  of the students, commits a misdemeanor of the first second
  293  degree, punishable as provided in s. 775.082 or s. 775.083.
  294         (3)By October 1, 2016, the commission shall establish a
  295  Closed Institution Panel. The panel shall consist of at least
  296  one commission member, one commission staff member, one
  297  accrediting body staff member, and one administrator with
  298  experience managing licensed institutions. The commission shall
  299  notify the panel upon the closing of a licensed institution. For
  300  any closure that does not comply with the requirements of
  301  subsection (2), or at the discretion of the commission chair,
  302  the panel shall convene to implement measures to minimize the
  303  academic, logistical, and financial impact on students of the
  304  institution. The panel is authorized to secure student records
  305  and, to the extent possible, maintain the educational programs
  306  at the institution for at least 30 days after it receives
  307  notification that the institution is closing to assist each
  308  student with completion of his or her educational program. The
  309  panel’s activities shall be conducted at the expense of the
  310  institution that is closing.
  311         Section 8. Section 1005.37, Florida Statutes, is amended to
  312  read:
  313         1005.37 Student Protection Fund.—
  314         (1) The commission shall establish and administer a
  315  statewide, fee-supported financial program through which funds
  316  will be available to complete the training of a student who
  317  enrolls in a licensed institution nonpublic school that
  318  terminates a program or ceases operation before the student has
  319  completed his or her program of study. The financial program is
  320  named the Student Protection Fund.
  321         (2) The commission is authorized to assess a fee from the
  322  licensed institutions schools within its jurisdiction for such
  323  purpose. The commission shall assess a licensed institution
  324  school an additional fee for its eligibility for the Student
  325  Protection Fund. Fees to support the fund shall be determined
  326  annually by the commission; however, if the fund balance exceeds
  327  $5 million on November 1 of any year, the fees may not be
  328  collected in the next calendar year.
  329         (3) If a licensed institution school terminates a program
  330  before all students complete it, the commission shall also
  331  assess that institution school a fee adequate to pay the full
  332  cost to the Student Protection Fund of completing the training
  333  of students.
  334         (4) The fund shall consist entirely of fees assessed to
  335  licensed institutions schools and shall not be funded under any
  336  circumstances by public funds, nor shall the commission make
  337  payments or be obligated to make payments in excess of the
  338  assessments actually received from licensed institutions schools
  339  and deposited in the Institutional Assessment Trust Fund to the
  340  credit of the Student Protection Fund.
  341         (5) At each commission meeting, the commission shall
  342  consider the need for and shall make required assessments, shall
  343  review the collection status of unpaid assessments and take all
  344  necessary steps to collect them, and shall review all moneys in
  345  the fund and expenses incurred since the last reporting period.
  346  This review must include administrative expenses, moneys
  347  received, and payments made to students or to lending
  348  institutions.
  349         (6) Staff of the commission must immediately inform the
  350  commission upon learning of the closing of a licensed
  351  institution school or the termination of a program that could
  352  expose the fund to liability.
  353         (7) The Student Protection Fund must be actuarially sound,
  354  periodically audited by the Auditor General in connection with
  355  his or her audit of the Department of Education, and reviewed to
  356  determine if additional fees must be charged to licensed
  357  institutions schools eligible to participate in the fund.
  358         Section 9. Subsections (1), (3), and (4) of section
  359  1005.39, Florida Statutes, are amended to read:
  360         1005.39 Continuing education and training for
  361  administrators and faculty.—
  362         (1) The commission shall determine whether is authorized to
  363  ensure that the administrators of licensed institutions are
  364  qualified to conduct the operations of their respective
  365  positions and to require such administrators and faculty to
  366  receive continuing education and training as adopted by rule of
  367  the commission. The positions for which the commission must may
  368  review qualifications and require continuing education and
  369  training may include the positions of chief administrator or
  370  officer, chief campus officer, director of education or
  371  training, placement director, admissions director, and financial
  372  aid director and faculty members. By July 1, 2017, and annually
  373  thereafter, the commission must verify that all administrators
  374  subject to continuing education requirements have completed
  375  training on state and federal laws and regulations specifically
  376  pertaining to the operation of nonpublic postsecondary
  377  institutions.
  378         (3) The commission shall adopt general qualifications for
  379  each of the respective positions and establish guidelines for
  380  the minimum amount and type of continuing education and training
  381  to be required. The continuing education and training may be
  382  provided by the commission, appropriate state or federal
  383  agencies, or professional organizations familiar with the
  384  requirements of the particular administrative positions.
  385  Continuing education may also be provided by licensed
  386  institutions upon approval of the commission. The actual
  387  curricula should be left to the discretion of those agencies,
  388  and organizations, and, if approved, licensed institutions.
  389         (4) Evidence of administrator the administrator’s and
  390  faculty member’s compliance with the continuing education and
  391  training requirements established by the commission must may be
  392  included in the initial and renewal application forms provided
  393  to by the commission. Actual records of the continuing education
  394  and training received by administrators and faculty shall be
  395  maintained at the institution and available for inspection at
  396  all times.
  397         Section 10. This act shall take effect July 1, 2016.