Florida Senate - 2016 COMMITTEE AMENDMENT
Bill No. CS for SB 800
Ì7111683Î711168
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
02/15/2016 .
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Appropriations Subcommittee on Education (Stargel) recommended
the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Subsection (1) of section 1005.04, Florida
6 Statutes, is amended to read:
7 1005.04 Fair consumer practices.—
8 (1) Every institution that is under the jurisdiction of the
9 commission or is exempt from the jurisdiction or purview of the
10 commission pursuant to s. 1005.06(1)(c) or (f) and that either
11 directly or indirectly solicits for enrollment any student
12 shall:
13 (a) Disclose to each prospective student a statement of the
14 purpose of such institution, its educational programs and
15 curricula, a description of its physical facilities, its status
16 regarding licensure, its fee schedule, including all fees and
17 costs that will be incurred by a student for completion of a
18 program at the institution, and policies regarding retaining
19 student fees if a student withdraws, and a statement regarding
20 the transferability of credits to and from other institutions.
21 The institution shall make the required disclosures in writing
22 at least 1 week prior to enrollment or collection of any tuition
23 from the prospective student. The required disclosures may be
24 made in the institution’s current catalog;
25 (b) Use a reliable method to assess, before accepting a
26 student into a program, the student’s ability to complete
27 successfully the course of study for which he or she has
28 applied;
29 (c) Inform each student accurately about financial
30 assistance and obligations for repayment of loans; describe any
31 employment placement services provided and the limitations
32 thereof; and refrain from promising or implying guaranteed
33 placement, market availability, or salary amounts;
34 (d) Provide to prospective and enrolled students accurate
35 information regarding the relationship of its programs to state
36 licensure requirements for practicing related occupations and
37 professions in Florida;
38 (e) Ensure that all advertisements are accurate and not
39 misleading;
40 (f) Publish and follow an equitable prorated refund policy
41 for all students, and follow both the federal refund guidelines
42 for students receiving federal financial assistance and the
43 minimum refund guidelines set by commission rule;
44 (g) Follow the requirements of state and federal laws that
45 require annual reporting with respect to crime statistics and
46 physical plant safety and make those reports available to the
47 public; and
48 (h) Publish and follow procedures for handling student
49 complaints, disciplinary actions, and appeals.
50 Section 2. Section 1005.11, Florida Statutes, is created to
51 read:
52 1005.11 Accountability for institutions licensed by the
53 Commission for Independent Education.—
54 (1) By March 15 of each year, the commission shall prepare
55 an annual accountability report for licensed institutions. The
56 report must contain, at a minimum, the graduation rates,
57 including the number of graduates by program, retention rates,
58 and placement rates for all licensed institutions.
59 (2) By November 30 of each year, each licensed institution
60 shall provide data to the commission in a format prescribed by
61 the commission. Placement rates shall be determined using
62 Florida Education and Training Placement Information Program
63 methodology. The commission shall establish a common set of data
64 definitions that are consistent with those used by the United
65 States Department of Education for institutional reporting
66 purposes.
67 (3) The commission shall impose an administrative fine of
68 not more than $1,000 when a licensed institution fails to timely
69 submit the required data to the commission pursuant to this
70 section. Administrative fines collected under this subsection
71 shall be deposited into the Student Protection Fund.
72 (4) The commission shall establish by rule performance
73 benchmarks to identify high-performing institutions licensed by
74 the commission. Licensed institutions with graduation rates,
75 retention rates, and placement rates equal to or higher than the
76 average rates of all Florida universities, colleges, or career
77 centers, as appropriate, may receive and use the designation of
78 “high performing.”
79 Section 3. Paragraphs (c) and (d) of subsection (2) and
80 subsection (3) of section 1005.21, Florida Statutes, are amended
81 to read:
82 1005.21 Commission for Independent Education.—
83 (2) The Commission for Independent Education shall consist
84 of seven members who are residents of this state. The commission
85 shall function in matters concerning independent postsecondary
86 educational institutions in consumer protection, program
87 improvement, and licensure for institutions under its purview.
88 The Governor shall appoint the members of the commission who are
89 subject to confirmation by the Senate. The membership of the
90 commission shall consist of:
91 (c) One member who is an employer of graduates of
92 institutions licensed by the commission. The member may not have
93 any other relationship with an institution subject to licensure
94 by the commission except for his or her status as an employer of
95 graduates of the institution from a public school district or
96 Florida College System institution who is an administrator of
97 career education.
98 (d) One member who is a graduate of an institution subject
99 to licensure by the commission. The member may not have any
100 other relationship with an institution subject to licensure by
101 the commission except for his or her status as an alumnus
102 representative of a college that meets the criteria of s.
103 1005.06(1)(f).
104 (3) The members of the commission shall be appointed to 3
105 year terms. Members may serve no more than three consecutive
106 terms or and until their successors are appointed and qualified,
107 whichever occurs first. If a vacancy on the commission occurs
108 before the expiration of a term, the Governor shall appoint a
109 successor to serve the unexpired portion of the term.
110 Section 4. Paragraphs (e) and (k) of subsection (1) of
111 section 1005.22, Florida Statutes, are amended, and paragraph
112 (j) is added to subsection (2) of that section, to read:
113 1005.22 Powers and duties of commission.—
114 (1) The commission shall:
115 (e) Administer the provisions of this chapter. To this end,
116 the commission has the following administrative powers and
117 responsibilities:
118 1. The commission shall adopt rules pursuant to ss.
119 120.536(1) and 120.54 for the operation and establishment of
120 independent postsecondary educational institutions. The
121 commission shall submit the rules to the State Board of
122 Education for approval or disapproval. If the state board does
123 not act on a rule within 60 days after receiving it, the rule
124 shall be filed immediately with the Department of State.
125 2. The commission shall approve and submit an annual budget
126 to the State Board of Education.
127 3. The commission shall transmit all fees, donations, and
128 other receipts of money to the Institutional Assessment Trust
129 Fund.
130 4. The commission shall expend funds as necessary to assist
131 in the application and enforcement of its powers and duties. The
132 Chief Financial Officer shall pay out all moneys and funds as
133 directed under this chapter upon vouchers approved by the
134 Department of Education for all lawful purposes necessary to
135 administering this chapter. The commission shall make annual
136 reports to the State Board of Education showing in detail
137 amounts received and all expenditures. The commission shall
138 include in its annual report to the State Board of Education a
139 statement of its major activities during the period covered by
140 the report.
141 (k) Establish and publicize the procedures for receiving
142 and responding to complaints from students, faculty, and others
143 concerning institutions or programs under the purview of the
144 commission, and keep records of such complaints in order to
145 determine the frequency and nature of complaints with respect to
146 specific institutions of higher education. Complaints not closed
147 within 90 days shall be reviewed by a committee appointed by the
148 commission.
149 (2) The commission may:
150 (j) Prohibit a licensed institution from enrolling new
151 students, or limit the number of students in a program at a
152 licensed institution, based on the institution’s performance.
153 Section 5. Subsections (5) through (16) of section 1005.31,
154 Florida Statutes, are renumbered as subsections (6) through
155 (17), respectively, subsection (2) and present subsection (6)
156 are amended, and a new subsection (5) is added to that section,
157 to read:
158 1005.31 Licensure of institutions.—
159 (2) The commission shall develop minimum standards by which
160 to evaluate institutions for licensure. These standards must
161 include, at a minimum, at least the institution’s: name,
162 financial stability, purpose, administrative organization,
163 admissions and recruitment, educational programs and curricula,
164 retention and, completion, including a retention and completion
165 management plan, career placement, faculty, learning resources,
166 student personnel services, physical plant and facilities,
167 publications, and disclosure statements about the status of the
168 institution with respect to professional certification and
169 licensure. The commission may adopt rules to ensure that
170 institutions licensed under this section meet these standards in
171 ways that are appropriate to achieve the stated intent of this
172 chapter, including provisions for nontraditional or distance
173 education programs and delivery.
174 (5) The commission may require institutions that do not
175 provide sufficient evidence of financial stability at the time
176 of application for a provisional license or that are dependent
177 upon financial resources located outside of the United States to
178 post and maintain a surety bond to assist each enrolled student
179 in completing his or her program of enrollment in the event that
180 the institution closes before receiving its first annual
181 licensure renewal. In lieu of a surety bond, the commission may
182 require an institution to establish and maintain a cash deposit
183 escrow account or an irrevocable letter of credit payable to the
184 commission in an amount not to exceed 50 percent of the
185 institution’s projected revenue for its first year. The
186 commission shall adopt rules to implement this subsection.
187 (7)(6) The commission shall ensure through an investigative
188 process that applicants for licensure meet the standards as
189 defined in rule. Within 30 days after receipt of an application,
190 the commission shall examine the application, notify the
191 applicant of any apparent errors or omissions, and request any
192 necessary additional information from the applicant. When the
193 investigative process is not completed within the time set out
194 in s. 120.60(1) and the commission has reason to believe that
195 the applicant does not meet licensure standards, the commission
196 or the executive director of the commission may issue a 90-day
197 licensure delay, which shall be in writing and sufficient to
198 notify the applicant of the reason for the delay. The provisions
199 of this subsection shall control over any conflicting provisions
200 of s. 120.60(1).
201 Section 6. Paragraph (e) of subsection (1) and subsection
202 (3) of section 1005.32, Florida Statutes, are amended to read:
203 1005.32 Licensure by means of accreditation.—
204 (1) An independent postsecondary educational institution
205 that meets the following criteria may apply for a license by
206 means of accreditation from the commission:
207 (e) The institution is a Florida corporation.
208 (3) The commission may not require an institution granted a
209 license by means of accreditation to submit reports that differ
210 from the reports required by its accrediting association, except
211 that each institution must file with the commission an annual
212 audit report and a retention and completion management plan
213 pursuant to s. 1005.31. The institution must also follow the
214 commission’s requirements for orderly closing, including
215 provisions for trainout or refunds and arranging for the proper
216 disposition of student and institutional records.
217 Section 7. Subsections (3) and (4) of section 1005.36,
218 Florida Statutes, are renumbered as subsections (4) and (5),
219 respectively, subsection (2) is amended, and a new subsection
220 (3) is added to that section, to read:
221 1005.36 Institutional closings.—
222 (2) At least 30 days before prior to closing an
223 institution, its owners, directors, or administrators shall
224 notify the commission in writing of the closure of the
225 institution. The owners, directors, and administrators must
226 organize an orderly closure of the institution, which means at
227 least providing for the completion of training of its students.
228 The commission must approve any such plan. An owner, director,
229 or administrator who fails to notify the commission at least 30
230 days before prior to the institution’s closure, or who fails to
231 organize the orderly closure of the institution and the trainout
232 of the students, commits a misdemeanor of the first second
233 degree, punishable as provided in s. 775.082 or s. 775.083.
234 (3) By October 1, 2016, the commission shall establish a
235 Closed Institution Panel. The panel shall consist of at least
236 one commission member, one commission staff member, one
237 accrediting body staff member, and one administrator with
238 experience managing licensed institutions. The commission shall
239 notify the panel upon the closing of a licensed institution. For
240 any closure that does not comply with the requirements of
241 subsection (2), or at the discretion of the commission chair,
242 the panel shall convene to implement measures to minimize the
243 academic, logistical, and financial impact on students of the
244 institution. The panel is authorized to secure student records
245 and, to the extent possible, maintain the educational programs
246 at the institution for at least 30 days after it receives
247 notification that the institution is closing to assist each
248 student with completion of his or her educational program. The
249 panel’s activities shall be conducted at the expense of the
250 institution that is closing.
251 Section 8. Section 1005.37, Florida Statutes, is amended to
252 read:
253 1005.37 Student Protection Fund.—
254 (1) The commission shall establish and administer a
255 statewide, fee-supported financial program through which funds
256 will be available to complete the training of a student who
257 enrolls in a licensed institution nonpublic school that
258 terminates a program or ceases operation before the student has
259 completed his or her program of study. The financial program is
260 named the Student Protection Fund.
261 (2) The commission is authorized to assess a fee from the
262 licensed institutions schools within its jurisdiction for such
263 purpose. The commission shall assess a licensed institution
264 school an additional fee for its eligibility for the Student
265 Protection Fund. Fees to support the fund shall be determined
266 annually by the commission; however, if the fund balance exceeds
267 $5 million on November 1 of any year, the fees may not be
268 collected in the next calendar year.
269 (3) If a licensed institution school terminates a program
270 before all students complete it, the commission shall also
271 assess that institution school a fee adequate to pay the full
272 cost to the Student Protection Fund of completing the training
273 of students.
274 (4) The fund shall consist entirely of fees assessed to
275 licensed institutions schools and shall not be funded under any
276 circumstances by public funds, nor shall the commission make
277 payments or be obligated to make payments in excess of the
278 assessments actually received from licensed institutions schools
279 and deposited in the Institutional Assessment Trust Fund to the
280 credit of the Student Protection Fund.
281 (5) At each commission meeting, the commission shall
282 consider the need for and shall make required assessments, shall
283 review the collection status of unpaid assessments and take all
284 necessary steps to collect them, and shall review all moneys in
285 the fund and expenses incurred since the last reporting period.
286 This review must include administrative expenses, moneys
287 received, and payments made to students or to lending
288 institutions.
289 (6) Staff of the commission must immediately inform the
290 commission upon learning of the closing of a licensed
291 institution school or the termination of a program that could
292 expose the fund to liability.
293 (7) The Student Protection Fund must be actuarially sound,
294 periodically audited by the Auditor General in connection with
295 his or her audit of the Department of Education, and reviewed to
296 determine if additional fees must be charged to licensed
297 institutions schools eligible to participate in the fund.
298 Section 9. Subsections (1), (3), and (4) of section
299 1005.39, Florida Statutes, are amended to read:
300 1005.39 Continuing education and training for
301 administrators and faculty.—
302 (1) The commission shall determine whether is authorized to
303 ensure that the administrators of licensed institutions are
304 qualified to conduct the operations of their respective
305 positions and to require such administrators and faculty to
306 receive continuing education and training as adopted by rule of
307 the commission. The positions for which the commission must may
308 review qualifications and require continuing education and
309 training may include the positions of chief administrator or
310 officer, chief campus officer, director of education or
311 training, placement director, admissions director, and financial
312 aid director and faculty members. By July 1, 2017, and annually
313 thereafter, the commission must verify that all administrators
314 subject to continuing education requirements have completed
315 training on state and federal laws and regulations specifically
316 pertaining to the operation of nonpublic postsecondary
317 institutions.
318 (3) The commission shall adopt general qualifications for
319 each of the respective positions and establish guidelines for
320 the minimum amount and type of continuing education and training
321 to be required. The continuing education and training may be
322 provided by the commission, appropriate state or federal
323 agencies, or professional organizations familiar with the
324 requirements of the particular administrative positions.
325 Continuing education may also be provided by licensed
326 institutions upon approval of the commission. The actual
327 curricula should be left to the discretion of those agencies,
328 and organizations, and, if approved, licensed institutions.
329 (4) Evidence of administrator the administrator’s and
330 faculty member’s compliance with the continuing education and
331 training requirements established by the commission must may be
332 included in the initial and renewal application forms provided
333 to by the commission. Actual records of the continuing education
334 and training received by administrators and faculty shall be
335 maintained at the institution and available for inspection at
336 all times.
337 Section 10. This act shall take effect July 1, 2016.
338
339 ================= T I T L E A M E N D M E N T ================
340 And the title is amended as follows:
341 Delete everything before the enacting clause
342 and insert:
343 A bill to be entitled
344 An act relating to independent postsecondary
345 educational institutions; amending s. 1005.04, F.S.;
346 requiring that certain institutions include specified
347 information relating to student fees and costs in a
348 disclosure to prospective students; creating s.
349 1005.11, F.S.; requiring the Commission for
350 Independent Education to annually prepare an
351 accountability report by a specified date; requiring
352 licensed institutions to annually provide certain data
353 to the commission by a specified date and authorizing
354 administrative fines for an institution that fails to
355 timely submit the data; requiring placement rates to
356 be determined using a specified methodology; requiring
357 the commission to establish a common set of data
358 definitions; requiring the commission to establish
359 certain benchmarks by rule; providing for the
360 designation of certain licensed institutions as “high
361 performing”; amending s. 1005.21, F.S.; revising the
362 commission’s membership; limiting the terms of
363 commission members; amending s. 1005.22, F.S.;
364 requiring the commission to approve an annual budget;
365 providing for the review of certain complaints
366 concerning institutions or programs which are not
367 closed within a specified time; authorizing the
368 commission to prohibit the enrollment of new students,
369 or limit the number of students in a program at, a
370 licensed institution under certain circumstances;
371 amending s. 1005.31, F.S.; revising the commission’s
372 evaluation standards for licensure of an institution;
373 requiring certain institutions to post a surety bond
374 or similar financial security for specified purposes;
375 requiring the commission to adopt rules; requiring the
376 commission to examine an application for licensure and
377 take certain actions within a specified period;
378 amending s. 1005.32, F.S.; deleting a provision
379 authorizing an institution that is a Florida
380 corporation to apply for licensure by means of
381 accreditation; requiring institutions granted
382 licensure through accreditation to file a retention
383 and completion management plan; amending s. 1005.36,
384 F.S.; revising the criminal penalty for the unlawful
385 closure of certain institutions; requiring the
386 commission to create a Closed Institution Panel;
387 providing membership and duties of the panel;
388 providing that the panel’s activities be conducted at
389 the expense of certain institutions; amending s.
390 1005.37, F.S.; requiring the commission to annually
391 determine fees to support the Student Protection Fund;
392 providing that fees may not be collected under certain
393 circumstances; amending s. 1005.39, F.S.; requiring
394 the commission to determine whether certain personnel
395 of licensed institutions are qualified and require
396 certain personnel to complete continuing education and
397 training; requiring the commission to annually verify
398 that certain personnel have completed certain training
399 by a specified date; authorizing continuing education
400 to be provided by licensed institutions under certain
401 circumstances; requiring certain evidence be included
402 in initial or renewal application forms provided by
403 the commission; providing an effective date.