Florida Senate - 2016                                     SB 800
       
       
        
       By Senator Brandes
       
       
       
       
       
       22-00644A-16                                           2016800__
    1                        A bill to be entitled                      
    2         An act relating to private postsecondary education;
    3         amending s. 1005.04, F.S.; requiring certain
    4         institutions to provide a student with a written
    5         disclosure of all fees and costs that the student will
    6         incur to complete his or her program; amending s.
    7         1005.21, F.S.; revising the membership of the
    8         Commission for Independent Education; amending s.
    9         1005.31, F.S.; requiring the commission to include a
   10         retention and completion management plan in the
   11         minimum standards used to evaluate an institution for
   12         licensure; requiring an institution applying for a
   13         provisional license to post and maintain a surety bond
   14         with the commission; specifying the amount of the
   15         surety bond; specifying the amount of time the surety
   16         bond remains in effect; authorizing the commission to
   17         allow a cash deposit escrow account or an irrevocable
   18         letter of credit as an alternative to the surety bond;
   19         providing for rulemaking; requiring the commission to
   20         review an application and request any necessary
   21         additional information from an applicant within a
   22         certain timeframe; amending s. 1005.32, F.S.; revising
   23         the criteria for licensure by means of accreditation;
   24         deleting the requirement that an applicant be a
   25         Florida corporation; requiring an institution that
   26         applies for licensure by means of accreditation to
   27         file a retention and completion management plan with
   28         the commission; amending s. 1005.37, F.S.; revising
   29         the institutions included in the Student Protection
   30         Fund to include licensed institutions; providing an
   31         effective date.
   32          
   33  Be It Enacted by the Legislature of the State of Florida:
   34  
   35         Section 1. Subsection (1) of section 1005.04, Florida
   36  Statutes, is amended to read:
   37         1005.04 Fair consumer practices.—
   38         (1) Every institution that is under the jurisdiction of the
   39  commission or is exempt from the jurisdiction or purview of the
   40  commission pursuant to s. 1005.06(1)(c) or (f) and that either
   41  directly or indirectly solicits for enrollment any student
   42  shall:
   43         (a) Disclose to each prospective student a statement of the
   44  purpose of such institution, its educational programs and
   45  curricula, a description of its physical facilities, its status
   46  regarding licensure, its fee schedule and policies regarding
   47  retaining student fees if a student withdraws, and a statement
   48  regarding the transferability of credits to and from other
   49  institutions. The institution shall make the required
   50  disclosures in writing at least 1 week prior to enrollment or
   51  collection of any tuition from the prospective student. The
   52  required disclosures may be made in the institution’s current
   53  catalog;
   54         (b) Use a reliable method to assess, before accepting a
   55  student into a program, the student’s ability to complete
   56  successfully the course of study for which he or she has
   57  applied;
   58         (c) Inform each student accurately about financial
   59  assistance and obligations for repayment of loans; describe any
   60  employment placement services provided and the limitations
   61  thereof; and refrain from promising or implying guaranteed
   62  placement, market availability, or salary amounts;
   63         (d) Provide to prospective and enrolled students accurate
   64  information regarding the relationship of its programs to state
   65  licensure requirements for practicing related occupations and
   66  professions in Florida;
   67         (e) Ensure that all advertisements are accurate and not
   68  misleading;
   69         (f) Publish and follow an equitable prorated refund policy
   70  for all students, and follow both the federal refund guidelines
   71  for students receiving federal financial assistance and the
   72  minimum refund guidelines set by commission rule;
   73         (g) Follow the requirements of state and federal laws that
   74  require annual reporting with respect to crime statistics and
   75  physical plant safety and make those reports available to the
   76  public; and
   77         (h) Publish and follow procedures for handling student
   78  complaints, disciplinary actions, and appeals; and.
   79         (i) Before enrollment, provide to students and prospective
   80  students, in a format prescribed by the commission, a written
   81  disclosure of all fees and costs they will incur to complete the
   82  program.
   83         Section 2. Paragraphs (c), (d), and (e) of subsection (2)
   84  of section 1005.21, Florida Statutes, are amended to read:
   85         1005.21 Commission for Independent Education.—
   86         (2) The Commission for Independent Education shall consist
   87  of seven members who are residents of this state. The commission
   88  shall function in matters concerning independent postsecondary
   89  educational institutions in consumer protection, program
   90  improvement, and licensure for institutions under its purview.
   91  The Governor shall appoint the members of the commission who are
   92  subject to confirmation by the Senate. The membership of the
   93  commission shall consist of:
   94         (c) Two members One member from a public school district or
   95  Florida College System institution who are administrators is an
   96  administrator of career education.
   97         (d) One representative of a college that meets the criteria
   98  of s. 1005.06(1)(f).
   99         (d)(e) One lay member who is not affiliated with an
  100  independent postsecondary educational institution.
  101         Section 3. Present subsection (2) of section 1005.31,
  102  Florida Statutes, is amended, present subsections (5) through
  103  (15) of that section are redesignated as subsections (6) through
  104  (16), respectively, a new subsection (5) is added to that
  105  section, and present subsection (6) of that section is amended,
  106  to read:
  107         1005.31 Licensure of institutions.—
  108         (2) The commission shall develop minimum standards by which
  109  to evaluate institutions for licensure. These standards must
  110  include at least the institution’s name;, financial stability;,
  111  purpose;, administrative organization;, admissions and
  112  recruitment;, educational programs and curricula;, retention
  113  and, completion, including a retention and completion management
  114  plan prescribed by the commission; career placement;, faculty;,
  115  learning resources;, student personnel services;, physical plant
  116  and facilities;, publications;, and disclosure statements about
  117  the status of the institution with respect to professional
  118  certification and licensure. The commission may adopt rules to
  119  ensure that institutions licensed under this section meet these
  120  standards in ways that are appropriate to achieve the stated
  121  intent of this chapter, including provisions for nontraditional
  122  or distance education programs and delivery.
  123         (5)(a) An institution applying for a provisional license
  124  shall post and maintain a surety bond with the commission in a
  125  format prescribed by the commission. The surety bond shall be
  126  executed by a surety company authorized to do business in this
  127  state, with the applicant as the principal. The surety bond
  128  shall be payable to the commission to assist the commission in
  129  aiding a student damaged by an institution ceasing operation
  130  before the student has completed his or her contracted program.
  131         (b)The surety bond must be for at least $100,000, and may
  132  not exceed 50 percent of the amount of the first year’s
  133  projected revenue.
  134         (c)A surety bond shall remain in effect until the
  135  institution applies for and receives a first annual licensure
  136  renewal and demonstrates financial stability as determined by
  137  the commission.
  138         (d)As an alternative to a surety bond, the commission may
  139  allow an institution to establish and maintain a cash deposit
  140  escrow account or an irrevocable letter of credit payable to the
  141  commission. The amount of the cash deposit escrow account or the
  142  irrevocable letter of credit shall be the same as the bond
  143  amount would have been for the institution.
  144         (e)The commission may adopt rules to implement this
  145  subsection.
  146         (7)(6) The commission shall ensure through an investigative
  147  process that applicants for licensure meet the standards as
  148  defined in rule. Within 60 days after receipt of an application,
  149  the commission shall examine the application, notify the
  150  applicant of any apparent error or omission, and request any
  151  necessary additional information. When the investigative process
  152  is not completed within the time set out in s. 120.60(1) and the
  153  commission has reason to believe that the applicant does not
  154  meet licensure standards, the commission or the executive
  155  director of the commission may issue a 90-day licensure delay,
  156  which shall be in writing and sufficient to notify the applicant
  157  of the reason for the delay. The provisions of this subsection
  158  shall control over any conflicting provisions of s. 120.60(1).
  159         Section 4. Paragraph (e) of subsection (1) and subsection
  160  (3) of section 1005.32, Florida Statutes, are amended to read:
  161         1005.32 Licensure by means of accreditation.—
  162         (1) An independent postsecondary educational institution
  163  that meets the following criteria may apply for a license by
  164  means of accreditation from the commission:
  165         (e) The institution is a Florida corporation.
  166         (3) The commission may not require an institution granted a
  167  license by means of accreditation to submit reports that differ
  168  from the reports required by its accrediting association, except
  169  that each institution must file with the commission an annual
  170  audit report and a retention and completion management plan as
  171  required in s. 1005.31. The institution must also and follow the
  172  commission’s requirements for orderly closing, including
  173  provisions for trainout or refunds and arranging for the proper
  174  disposition of student and institutional records.
  175         Section 5. Section 1005.37, Florida Statutes, is amended to
  176  read:
  177         1005.37 Student Protection Fund.—
  178         (1) The commission shall establish and administer a
  179  statewide, fee-supported financial program through which funds
  180  will be available to complete the training of a student who
  181  enrolls in a licensed institution nonpublic school that
  182  terminates a program or ceases operation before the student has
  183  completed his or her program of study. The financial program is
  184  named the Student Protection Fund.
  185         (2) The commission is authorized to assess a fee from the
  186  licensed institutions schools within its jurisdiction for such
  187  purpose. The commission shall assess a licensed institution
  188  school an additional fee for its eligibility for the Student
  189  Protection Fund.
  190         (3) If a licensed institution school terminates a program
  191  before all students complete it, the commission shall also
  192  assess that institution school a fee adequate to pay the full
  193  cost to the Student Protection Fund of completing the training
  194  of students.
  195         (4) The fund shall consist entirely of fees assessed to
  196  licensed institutions schools and shall not be funded under any
  197  circumstances by public funds, nor shall the commission make
  198  payments or be obligated to make payments in excess of the
  199  assessments actually received from licensed institutions schools
  200  and deposited in the Institutional Assessment Trust Fund to the
  201  credit of the Student Protection Fund.
  202         (5) At each commission meeting, the commission shall
  203  consider the need for and shall make required assessments, shall
  204  review the collection status of unpaid assessments and take all
  205  necessary steps to collect them, and shall review all moneys in
  206  the fund and expenses incurred since the last reporting period.
  207  This review must include administrative expenses, moneys
  208  received, and payments made to students or to lending
  209  institutions.
  210         (6) Staff of the commission must immediately inform the
  211  commission upon learning of the closing of a licensed
  212  institution school or the termination of a program that could
  213  expose the fund to liability.
  214         (7) The Student Protection Fund must be actuarially sound,
  215  periodically audited by the Auditor General in connection with
  216  his or her audit of the Department of Education, and reviewed to
  217  determine if additional fees must be charged to licensed
  218  institutions schools eligible to participate in the fund.
  219         Section 6. This act shall take effect July 1, 2016.