Senate Bill 2316

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    Florida Senate - 1998                                  SB 2316

    By Senator Grant





    13-1449-98

  1                      A bill to be entitled

  2         An act relating to the State Board of

  3         Independent Colleges and Universities (RAB);

  4         amending s. 246.081, F.S.; restricting certain

  5         activities of graduates of foreign medical

  6         schools; amending s. 246.085, F.S.; requiring

  7         rules relating to certificates of exemption;

  8         amending ss. 246.087, 246.091, F.S.; requiring

  9         certain procedures and rules to be adopted

10         relating to licensing requirements; creating s.

11         246.093, F.S.; requiring certain colleges to

12         obtain permission to operate; amending s.

13         246.095, F.S.; requiring rules relating to fair

14         consumer practices; providing an effective

15         date.

16

17  Be It Enacted by the Legislature of the State of Florida:

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19         Section 1.  Subsections (1) and (2) of section 246.081,

20  Florida Statutes, are amended and subsection (6) is added to

21  that section to read:

22         246.081  License, certificate of exemption, or

23  authorization required; exceptions.--

24         (1)  The following colleges are not under the

25  jurisdiction of the board and are not required to obtain a

26  license, a certificate of exemption, permission to operate, or

27  an authorization from the board:

28         (a)  Any college provided, operated, and supported by

29  the State of Florida or its political subdivisions or the

30  Federal Government.

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  1         (b)  Any college, school, or course licensed or

  2  approved for establishment and operation under chapter 464,

  3  chapter 466, or chapter 475, or any other chapter of the

  4  Florida Statutes, requiring licensing or approval as defined

  5  in ss. 246.011-246.151.

  6         (2)  No nonpublic college shall continue operation or

  7  be established within the state, and no students of foreign

  8  medical schools shall engage in clinical clerkships of

  9  Florida, unless such college shall apply for, and obtain from

10  the board, a license, a certificate of exemption, permission

11  to operate, or authorization in the manner and form prescribed

12  by the board. Upon receipt of approved articles of

13  incorporation from the Department of State that purport to be

14  for a college as defined in s. 246.021, the newly formed

15  corporation shall, within 60 days after such approval, make an

16  application to the board for a license, a certificate of

17  exemption, or other authorization as required by law.  The

18  approval of articles of incorporation by the Department of

19  State shall not be deemed to be an approval to engage in the

20  operation of an institution of higher learning. Such

21  institution shall not advertise or operate until a license,

22  certificate of exemption, permission to operate, or

23  authorization has been obtained from the board.  When articles

24  of incorporation are issued to an institution of higher

25  learning, the Department of State shall immediately furnish a

26  copy of the articles of incorporation to the board.

27         (6)  A student of a foreign medical school may not

28  engage in a clinical clerkship in this state unless the

29  foreign medical school has received a license, in the case of

30  a core clerkship or an ongoing regular program of clerkships,

31  or has received individual approval, in the case of an

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    Florida Senate - 1998                                  SB 2316
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  1  occasional elective clerkship. The board shall adopt rules to

  2  administer this subsection.

  3         Section 2.  Subsection (4) of section 246.085, Florida

  4  Statutes, is amended to read:

  5         246.085  Certificate of exemption.--

  6         (4)  Each certificate of exemption issued by the board

  7  shall be subject to an annual review by the board to determine

  8  if the college remains eligible for the exemption.  Colleges

  9  which have applied for and received exemption under this

10  section may remain in compliance for exemption by annually

11  submitting evidence that the college remains in compliance

12  with the provisions of subsection (1), the information

13  required by s. 246.041(1)(n), and a current catalog. The

14  burden of determining compliance shall rest with the board,

15  and the board may make such further investigation and may

16  require further evidence, in addition to the information

17  submitted, as may be necessary in its judgment. The board

18  shall adopt rules for issuing and annually reviewing

19  certificates of exemption.

20         Section 3.  Section 246.087, Florida Statutes, is

21  amended to read:

22         246.087  Licensing requirements.--

23         (1)  The minimum standards to be evaluated by the board

24  for the licensing of colleges shall include purpose,

25  administrative organization, admissions and recruitment,

26  educational program and curricula, finances, faculty, library,

27  student personnel services, physical plant and facilities,

28  publications, and disclosure statements about the status of

29  the college in relation to professional certification and

30  licensure. The board shall adopt rules to ensure that licensed

31  colleges meet these standards in ways that are appropriate to

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  1  achieve the stated intent of s. 246.011, including provisions

  2  for nontraditional programs and delivery.

  3         (2)  The minimum standards for the licensing of agents

  4  shall include name, residential and business addresses,

  5  background, training, college to be represented, and

  6  demonstrated knowledge of statutes and rules related to the

  7  authority granted to agents and the limitations imposed upon

  8  such authority.  An No employee of a nonpublic college may not

  9  shall solicit prospective students for enrollment in such

10  college until that employee has completed a training program

11  containing the information required by the board in rule and

12  becomes is licensed by the board as an agent. The board shall

13  adopt rules to ensure that licensed agents meet these

14  standards and uphold the intent of s. 246.011.

15         Section 4.  Section 246.091, Florida Statutes, is

16  amended to read:

17         246.091  License period and renewal.--

18         (1)  Each license issued by the board shall be subject

19  to an annual review and renewal by the board to determine if

20  the licensee is in compliance with ss. 246.011-246.151.  A

21  college affected under this act may be granted a temporary or

22  provisional license.  Nothing in ss. 246.011-246.151 shall

23  prevent the extension of such a temporary or provisional

24  license provided a good faith effort has been made by the

25  college and agent.  The burden of determining compliance or a

26  good-faith good faith effort rests shall rest with the board,

27  and the board shall adopt rules to administer this section.

28         (2)  A licensed college that which seeks to expand its

29  degrees to be conferred or to add new branches or other

30  locations shall file a supplementary application. The board

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  1  shall promulgate standards for the approval of additional

  2  degrees and locations.

  3         (3)  A licensed college shall notify the board at least

  4  30 days prior to a change of ownership or control. If the

  5  board determines that the anticipated effects of the change

  6  are substantive enough that the practical result is to

  7  transform the licensed institution into a different college

  8  entity, a new application for licensure is required for the

  9  same level of licensure currently held by the college. During

10  the time that the new application is being prepared,

11  submitted, and evaluated, the board shall not interrupt the

12  progress of currently enrolled students solely because of the

13  change of ownership or control. The board shall adopt rules

14  governing changes of ownership or control.

15         (4)(3)  A licensed college which seeks to conduct any

16  diploma program, as defined in s. 246.203, shall apply to the

17  State Board of Independent Postsecondary Vocational,

18  Technical, Trade, and Business Schools for licensure for such

19  program.

20         (5)(4)  A licensed college, prior to the discontinuance

21  of operation, shall have the duty to convey all student

22  records to the board or to another location designated by the

23  board. At least 60 days prior to closing, the college shall

24  notify the board of the intention to close and shall submit a

25  plan for the orderly transfer of students and records. At the

26  same time, students shall be informed by the college of the

27  plan to close and of their options for continuing their

28  programs elsewhere and for the storage of their records. The

29  board shall adopt rules for the orderly closure of colleges.

30         Section 5.  Section 246.093, Florida Statutes, is

31  created to read:

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  1         246.093  Permission to operate.--

  2         (1)  An out-of-state college seeking to have a minimal

  3  presence in this state for the purpose of maintaining a

  4  business office, providing an occasional seminar that carries

  5  college credit, or arranging an occasional clinical clerkship

  6  for a medical student or for the purpose of other operations

  7  not involving a regular, continuous, credit-bearing

  8  educational program in this state must apply to the board for

  9  permission to operate. The board shall adopt rules and fees

10  for this status.

11         (2)  Permission to operate shall be granted for a

12  specific period of time not to exceed 1 year, and shall be

13  limited to the activities approved by the board at the time of

14  application. A new application for permission to operate is

15  required for additional or different activities or additional

16  periods of time.

17         (3)  Colleges granted permission to operate must

18  disclose to prospective students the status, the limited

19  meaning of the status, and the name, address, and telephone

20  number of the board for further information about the college

21  or program and must provide the board with copies of this

22  disclosure. Colleges granted permission to operate must adhere

23  to applicable fair consumer practices, to be determined by the

24  board as appropriate in each case to protect consumers in this

25  state.

26         (4)  Permission to operate is subject to denial,

27  probation, or revocation for cause under s. 246.111.

28         Section 6.  Section 246.095, Florida Statutes, is

29  amended to read:

30         246.095  Fair consumer practices Disclosure to

31  prospective students; condition of operation.--

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  1         (1)  Every college which is either licensed by the

  2  board or has been granted a certificate of exemption by the

  3  board and which either directly or indirectly solicits for

  4  enrollment any student shall disclose to each prospective

  5  student a statement of the purpose of such college, its

  6  educational programs and curricula, a description of its

  7  physical facilities, its status regarding licensure, its fee

  8  schedule and policies about retaining student fees if a

  9  student withdraws, and a statement regarding the

10  transferability of credits to and from other colleges.  In

11  addition, colleges which are required to be licensed by the

12  board shall disclose to prospective students that additional

13  information regarding the college may be obtained by

14  contacting the State Board of Independent Colleges and

15  Universities, Department of Education, Tallahassee.  The

16  college shall make the required disclosures in writing at

17  least 1 week prior to enrollment or collection of any tuition

18  from the prospective student.  The required disclosures may be

19  made in the institution's current catalog.

20         (2)  In order to ensure fair and equitable conduct of

21  business and academic relations between colleges and their

22  students or potential students, each college shall demonstrate

23  to the board, as specified in board rules:

24         (a)  That it uses a reliable method to assess, before

25  accepting a student into a program, the student's ability to

26  complete successfully the course of study for which he or she

27  has applied;

28         (b)  That it informs each student accurately about

29  financial assistance and obligations for repayment of loans;

30  that it accurately describes any employment placement services

31  provided and the limitations thereof; and that it does not

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  1  promise or imply guaranteed placement, market availability, or

  2  salary amounts;

  3         (c)  That it provides to prospective and enrolled

  4  students accurate information regarding the relationship of

  5  its programs to state licensure requirements for practicing

  6  related occupations and professions in Florida;

  7         (d)  That all advertisements are accurate and not

  8  misleading;

  9         (e)  That it publishes and follows an equitable

10  prorated refund policy for all students, and that it follows

11  both the federal refund guidelines for students receiving

12  federal financial assistance and the minimum refund guidelines

13  set by board rule;

14         (f)  That it follows the requirements of ss. 240.2683

15  and 240.2684 and federal laws that require annual reporting

16  with respect to crime statistics and physical plant safety and

17  make those reports available to the public; and

18         (g)  That it publishes and follows procedures for

19  handling student complaints, disciplinary actions, and

20  appeals.

21         (3)(2)  A license or certificate of exemption shall not

22  be granted or renewed by the board unless the college seeking

23  the action provides the board with a sworn statement of

24  compliance with this section.  The board shall prescribe the

25  manner and form of the statement.

26         (4)(3)  The board may examine any complaint of

27  nondisclosure to prospective students of colleges under the

28  jurisdiction of the board, and, if the college is found to be

29  routinely handling these matters correctly, the complaint

30  shall be disregarded.  Complaints of nondisclosure against

31  accredited colleges shall be forwarded by the board to the

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  1  college and appropriate accrediting agency with a request that

  2  the board be advised of any and all actions taken in response

  3  to the complaint.

  4         (5)(4)  Refusal to comply with this section is cause

  5  for denial or revocation of a license or a certificate of

  6  exemption under s. 246.111.

  7         Section 7.  This act shall take effect upon becoming a

  8  law.

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10            *****************************************

11                          SENATE SUMMARY

12    Revises rulemaking authority of the State Board of
      Independent Colleges and Universities.
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