HB 1089CS

CHAMBER ACTION



1The Colleges & Universities Committee recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to independent postsecondary education;
7amending s. 1005.31, F.S.; providing requirements of
8independent postsecondary educational institutions
9licensed by the Commission for Independent Education;
10providing requirements for an investigative process for
11licensure of applicants; revising provisions relating to
12applicant status; providing for inspections; creating s.
131005.375, F.S.; specifying acts that constitute violations
14and providing penalties therefor; amending s. 1005.38,
15F.S.; providing requirements for investigation of a
16suspected violation of the chapter or rules; providing
17additional grounds for disciplinary actions; providing for
18a final order to dismiss a complaint or impose specified
19penalties; providing for imposition and collection of an
20assessment relating to investigation and prosecution of a
21case; providing for an emergency suspension or restriction
22order; creating s. 1005.385, F.S.; requiring the
23commission to adopt rules relating to issuance of a
24citation to an institution and violations for which a
25citation may be issued; specifying requirements for
26issuance; amending s. 1010.83, F.S.; providing for the
27inclusion in the Institutional Assessment Trust Fund of
28fees and fines imposed on institutions; specifying
29separate accounts; revising uses of funds in the trust
30fund; providing an effective date.
31
32Be It Enacted by the Legislature of the State of Florida:
33
34     Section 1.  Subsections (1) and (4) of section 1005.31,
35Florida Statutes, are amended, subsections (6) through (13) are
36renumbered as subsections (7) through (14), respectively, and
37new subsections (6) and (15) are added to said section, to read:
38     1005.31  Licensure of institutions.--
39     (1)(a)  Each college or school operating within this state
40must obtain licensure from the commission unless the institution
41is not under the commission's purview or jurisdiction as
42provided in s. 1005.06.
43     (b)  Each licensee is solely responsible for notifying the
44commission in writing of the licensee's current mailing address
45and the location of the institution. A licensee's failure to
46notify the commission of a change of address constitutes a
47violation of this paragraph, and the licensee may be disciplined
48by the commission. Notwithstanding any other provision of law,
49service by regular mail to a licensee's last known address of
50record with the commission constitutes adequate and sufficient
51notice to the licensee for any official communication to the
52licensee by the commission.
53     (4)  Approved-applicant status shall be extended to all
54institutions that have submitted a complete application, as
55defined in rule, for provisional licensure and paid all
56attendant fees. An incomplete application shall expire 1 year
57after initial filing. In granting approved-applicant status, the
58commission shall provide to commission staff and the institution
59a list of specific omissions or deficiencies. Institutions
60granted approved-applicant status may not advertise, offer
61programs of study, collect tuition or fees, or engage in any
62other activities not specifically approved by the commission. If
63the commission, or the commission staff if specifically directed
64by the commission, determines that identified the omissions or
65deficiencies have been provided for or corrected, the
66institution may be awarded a provisional license.
67     (6)  The commission shall ensure through an investigative
68process that applicants for licensure meet the standards as
69defined in rule. When the investigative process is not completed
70within the time set out in s. 120.60(1) and the commission has
71reason to believe that the applicant does not meet licensure
72standards, the commission or the executive director of the
73commission may issue a 90-day licensure delay, which shall be in
74writing and sufficient to notify the applicant of the reason for
75the delay. The provisions of this subsection shall control over
76any conflicting provisions of s. 120.60(1).
77     (15)  Duly authorized agents and employees of the
78commission shall have the power to inspect, in a lawful manner
79at all reasonable hours, any applicant for licensure or licensed
80independent postsecondary educational institution.
81     Section 2.  Section 1005.375, Florida Statutes, is created
82to read:
83     1005.375  Violations; penalties.--
84     (1)  Each of the following acts constitutes a felony of the
85third degree, punishable as provided in s. 775.082, s. 775.083,
86or s. 775.084:
87     (a)  Operating an independent postsecondary educational
88institution without a valid, active license issued pursuant to
89this chapter.
90     (b)  Obtaining or attempting to obtain a license to operate
91an institution by fraudulent misrepresentation.
92     (c)  Using or attempting to use a license that has been
93suspended or revoked.
94     (2)  Each of the following acts constitutes a misdemeanor
95of the second degree, punishable as provided in s. 775.082 or s.
96775.083:
97     (a)  Knowingly concealing information relating to
98violations of this chapter.
99     (b)  Willfully making any false oath or affirmation when
100required to make an oath or affirmation pursuant to this
101chapter.
102     Section 3.  Subsections (6) and (8) of section 1005.38,
103Florida Statutes, are amended, and subsections (9) through (12)
104are added to said section, to read:
105     1005.38  Actions against a licensee and other penalties.--
106     (6)  The commission may conduct disciplinary proceedings
107through an investigation of any suspected violation of this
108chapter or any rule of the commission, including a finding of
109probable cause and making reports to any law enforcement agency
110or regulatory agency.
111     (a)  The commission shall cause to be investigated a
112suspected violation of any provision of this chapter or any rule
113of the commission. Regardless of the source of information
114regarding the suspected violation, an investigation may be
115continued until it is completed and an investigative report is
116presented to a probable cause panel of the commission.
117     (b)(a)  The commission shall notify an institution or
118individual of the substance of any complaint that is under
119investigation unless the executive director and chairperson of
120the commission board concur that notification would impede the
121investigation. The commission may also withhold notification to
122a person under investigation for an act that constitutes a
123criminal offense.
124     (c)(b)  The determination of probable cause shall be made
125by a majority vote of the probable cause probable-cause panel,
126the membership of which shall be provided by rule. After the
127panel declares a finding of probable cause, the commission may
128issue an administrative complaint and prosecute such complaint
129under chapter 120.
130     (d)(c)  A privilege against civil liability is granted to
131any informant or any witness who provides information in good
132faith for an investigation or proceeding conducted under this
133section.
134     (e)  Upon written request by an informant, the commission
135shall notify the informant of the status of an investigation,
136civil action, or administrative proceeding.
137     (8)  The commission shall adopt rules to identify grounds
138for imposing disciplinary actions for violations of this chapter
139or rules of the commission or for denial of a license, which
140must include at least the following grounds:
141     (a)  Attempting to obtain action from the commission by
142fraudulent misrepresentation, bribery, or through an error of
143the commission.
144     (b)  Action against a license or operation imposed under
145the authority of another state, territory, or country.
146     (c)  Delegating professional responsibilities to a person
147who is not qualified by training, experience, or licensure to
148perform the responsibilities.
149     (d)  False, deceptive, or misleading advertising.
150     (e)  Conspiring to coerce, intimidate, or preclude another
151licensee from lawfully advertising his or her services.
152     (f)  Violating or repeatedly violating any provision of
153this chapter or any rule adopted pursuant thereto.
154     (g)  Operating with a revoked, suspended, or inactive
155license.
156     (h)  Violating any lawful order of the commission
157previously entered in a disciplinary hearing or failing to
158comply with a lawfully issued subpoena.
159     (9)  The commission shall enter a final order either
160dismissing a complaint or imposing one or more of the following
161penalties for any violation of this chapter or any rule of the
162commission:
163     (a)  Denial of an application for licensure.
164     (b)  Revocation or suspension of a license.
165     (c)  Imposition of an administrative fine of no less than
166$100 and no more than $5,000 for each count or separate
167violation. Such fine shall be deposited in the Institutional
168Assessment Trust Fund pursuant to s. 1010.83.
169     (d)  Placement of a licensee on probation for a period of
170time and subject to such conditions as the commission may
171specify.
172     (e)  Issuance of a written reprimand to an institution.
173Such reprimand shall be posted in a prominent place at the
174institution for such period of time as the commission may
175specify.
176     (10)  In addition to any discipline imposed through final
177order entered for a violation of this chapter or commission
178rule, the commission shall assess costs related to the
179investigation and prosecution of the case. Such costs include,
180but are not limited to, salaries and benefits of personnel,
181costs related to time spent by an attorney and other personnel
182working on the case, and any other expenses incurred by the
183commission in relation to the case. The commission shall
184determine the amount of costs to be assessed after its
185consideration of an affidavit of itemized costs and any written
186objections thereto.
187     (11)  In any case in which the commission imposes a fine or
188an assessment of costs and the fine or assessment is not paid
189within a reasonable time, such reasonable time to be prescribed
190in commission rule or in the order assessing such fine or
191assessment, the commission or the Department of Legal Affairs
192may contract for the collection of, or bring a civil action to
193recover, the fine or assessment.
194     (12)  The commission shall not reinstate the license of an
195institution, or cause a license to be issued to an institution
196it has deemed unqualified, until such time as it is satisfied
197that the institution has complied with all the terms and
198conditions set forth in the final order.
199     (13)  The commission shall issue an emergency order
200suspending or limiting the license of an institution if there is
201a finding that an immediate danger to the public health, safety,
202or welfare requires emergency action. The executive director of
203the commission shall review the matter to determine if the
204emergency suspension or restriction order is warranted. Nothing
205in this subsection shall be construed to limit the authority of
206the executive director to issue an emergency order.
207     Section 4.  Section 1005.385, Florida Statutes, is created
208to read:
209     1005.385  Authority to issue citations.--
210     (1)  The commission shall adopt rules to permit the
211issuance of citations. A citation shall be issued to an
212independent postsecondary educational institution and shall
213contain the institution's name and address, the institution's
214license number if applicable, a brief factual statement, the
215sections of law allegedly violated, and the penalty imposed. A
216citation must clearly state that the subject may choose, in lieu
217of accepting the citation, to dispute the matter in the citation
218and must provide the subject all rights for either an informal
219hearing to dispute the facts before the commission or a formal
220hearing to dispute the facts before an administrative law judge
221from the Division of Administrative Hearings pursuant to chapter
222120. However, if the subject does not dispute the matter in the
223citation within 30 days after the citation is served, the
224citation becomes a final order and constitutes discipline. The
225penalty shall be a fine or other conditions as established by
226rule.
227     (2)  The commission shall adopt rules designating
228violations for which a citation may be issued. A violation so
229designated shall be a violation for which there is no
230substantial threat to the public health, safety, or welfare.
231     (3)  The commission shall be entitled to recover the costs
232of investigation, in addition to any penalty provided according
233to rule, as part of the penalty levied pursuant to a citation.
234     (4)  A citation must be issued within 6 months after the
235filing of a complaint that is the basis for the citation.
236     (5)  Service of a citation may be made by personal service
237or certified mail, restricted delivery, to the subject at the
238subject's last known address of record.
239     Section 5.  Section 1010.83, Florida Statutes, is amended
240to read:
241     1010.83  Institutional Assessment Trust Fund.--
242     (1)  Chapter 99-32, Laws of Florida, re-created the
243Institutional Assessment Trust Fund to be administered by the
244Department of Education pursuant to this section and rules of
245the State Board of Education. The trust fund shall consist of
246all fees and fines imposed upon nonpublic colleges and schools
247pursuant to this chapter and chapter 1005, including all fees
248collected from nonpublic colleges and schools for participation
249in the Student Protection Fund and the statewide common course
250designation and numbering system. The department shall maintain
251separate revenue accounts for the operation of the Commission
252for Independent Education independent colleges and universities;
253the Student Protection Fund nonpublic career education; and the
254Department of Education.
255     (2)  Funds from the trust fund shall be used for purposes
256including, but not limited to, the following:
257     (a)  Authorized expenses of the Commission for Independent
258Education respective boards in carrying out its their required
259duties.
260     (b)  Financial assistance programs for students who attend
261nonpublic institutions licensed by the board.
262     (c)  Educational programs for the benefit of current and
263prospective owners, administrators, agents, authorized groups of
264individuals, and faculty of institutions receiving a license, a
265certificate of exemption, or an authorization by the board.
266     (b)(d)  Authorized expenses from of the Department of
267Education account incurred as a result of the inclusion of
268nonpublic colleges in the statewide course numbering system.
269     (c)  Expenses authorized by the Commission for Independent
270Education from the Student Protection Fund account to complete
271the training of students enrolled in an institution that
272terminates a program or ceases operation while the student is
273enrolled or to facilitate the retrieval or safekeeping of
274records from a closed institution.
275     (3)  The Commission for Independent Education board may
276utilize other individuals or entities to administer the programs
277authorized in subsection (2).
278     Section 6.  This act shall take effect July 1, 2005.


CODING: Words stricken are deletions; words underlined are additions.