Florida Senate - 2018 SB 1310
By Senator Rodriguez
37-00232-18 20181310__
1 A bill to be entitled
2 An act relating to postsecondary educational
3 institutions; amending s. 1005.04, F.S.; revising the
4 required disclosures specified institutions must make
5 to each prospective student; creating s. 1005.11,
6 F.S.; requiring the commission to annually prepare an
7 accountability report by a specified date; requiring
8 licensed institutions to annually provide certain data
9 to the commission by a specified date; requiring
10 administrative fines for an institution that fails to
11 timely submit the required data; requiring the
12 commission to establish certain benchmarks by rule;
13 amending s. 1005.21, F.S.; revising the membership of
14 the commission; limiting the terms of commission
15 members; amending s. 1005.22, F.S.; requiring the
16 commission to approve an annual budget; providing for
17 the review of certain complaints; authorizing the
18 commission, under certain circumstances, to prohibit
19 the enrollment of new students or to limit the number
20 of students in a program at a licensed institution;
21 amending s. 1005.31, F.S.; revising the commission’s
22 evaluation standards for licensure of an institution;
23 requiring the commission to deny a renewal of an
24 annual license for institutions whose federal student
25 loan cohort default rates exceed a specified percent;
26 authorizing the commission to require certain
27 institutions to post a surety bond or similar
28 financial security for specified purposes; requiring
29 the commission to adopt rules; requiring the
30 commission to examine an application for licensure and
31 take certain actions within a specified period;
32 amending s. 1005.32, F.S.; revising criteria for
33 independent postsecondary educational institutions to
34 apply for a license by accreditation; requiring
35 certain institutions to file a retention and
36 completion management plan; amending s. 1005.36, F.S.;
37 revising the criminal penalty for the unlawful closure
38 of certain institutions; requiring the commission to
39 create a Closed Institution Panel by a specified date;
40 providing membership and duties of the panel; amending
41 s. 1005.37, F.S.; requiring the commission to annually
42 determine fees to support the Student Protection Fund;
43 prohibiting the commission from collecting the fees
44 under certain circumstances; amending s. 1005.39,
45 F.S.; requiring the commission to determine the
46 qualifications of certain personnel of licensed
47 institutions; requiring the commission to annually
48 verify that certain personnel have completed certain
49 training by a specified date; authorizing the
50 provision of continuing education by licensed
51 institutions under certain circumstances; requiring
52 that certain evidence be included in initial or
53 renewal application forms provided by the commission;
54 amending ss. 1011.81 and 1011.905, F.S.; requiring
55 that Florida College System institution performance
56 funding for industry certifications and State
57 University System university performance funding take
58 into consideration an institution’s federal student
59 loan cohort default rate; providing an effective date.
60
61 Be It Enacted by the Legislature of the State of Florida:
62
63 Section 1. Section 1005.04, Florida Statutes, is amended to
64 read:
65 1005.04 Fair consumer practices; federal student loan
66 default rates.—
67 (1) Every institution that is under the jurisdiction of the
68 commission or is exempt from the jurisdiction or purview of the
69 commission pursuant to s. 1005.06(1)(c) or (f) and that either
70 directly or indirectly solicits for enrollment any student shall
71 do all of the following:
72 (a) Provide each student with an accurate, stand-alone
73 disclosure statement, in a format prescribed by the commission,
74 as a condition of any financial obligation of the student to the
75 institution. The institution must provide the disclosure
76 statement individually to each student at least 1 week before
77 enrollment or collection of tuition from the student. The
78 disclosure statement must include, at a minimum:
79 1. The purpose of the institution, its educational programs
80 and curricula, and a description of its physical facilities;
81 2. The institution’s licensure status with the commission
82 and its status as an accredited institution or program, as
83 applicable, by an accrediting agency recognized by the United
84 States Department of Education, and any effect that
85 accreditation or lack of accreditation will have on the
86 student’s ability to sit for a professional examination or
87 qualify for financial aid;
88 3. The institution’s fee schedule; all fees required to be
89 paid by the student, including tuition, laboratory fees,
90 graduation fees, and any other nonrefundable fees; and the
91 institution’s policies regarding the retention of student fees
92 if a student withdraws from the institution;
93 4. The transferability of credits to other institutions and
94 from other institutions; and
95 5. Requirements or limitations, such as physical or
96 language capabilities or lack of a criminal record, which will
97 limit career options related to the student’s course of study
98 Disclose to each prospective student a statement of the purpose
99 of such institution, its educational programs and curricula, a
100 description of its physical facilities, its status regarding
101 licensure, its fee schedule and policies regarding retaining
102 student fees if a student withdraws, and a statement regarding
103 the transferability of credits to and from other institutions.
104 The institution shall make the required disclosures in writing
105 at least 1 week prior to enrollment or collection of any tuition
106 from the prospective student. The required disclosures may be
107 made in the institution’s current catalog;
108 (b) Use a reliable method to assess, before accepting a
109 student into a program, the student’s ability to complete
110 successfully the course of study for which he or she has
111 applied.;
112 (c) Inform each student accurately about financial
113 assistance and obligations for repayment of loans; describe any
114 employment placement services provided and the limitations
115 thereof; and refrain from promising or implying guaranteed
116 placement, market availability, or salary amounts.;
117 (d) Provide to prospective and enrolled students accurate
118 information regarding the relationship of its programs to state
119 licensure requirements for practicing related occupations and
120 professions in Florida.;
121 (e) Ensure that all advertisements are accurate and not
122 misleading.;
123 (f) Publish and follow an equitable prorated refund policy
124 for all students, and follow both the federal refund guidelines
125 for students receiving federal financial assistance and the
126 minimum refund guidelines set by commission rule.;
127 (g) Follow the requirements of state and federal laws that
128 require annual reporting with respect to crime statistics and
129 physical plant safety and make those reports available to the
130 public.; and
131 (h) Publish and follow procedures for handling student
132 complaints, disciplinary actions, and appeals.
133 (2) In addition, Institutions that are required to be
134 licensed by the commission shall disclose to prospective
135 students that additional information regarding the institution
136 may be obtained by contacting the commission for Independent
137 Education, Department of Education, Tallahassee.
138 Section 2. Section 1005.11, Florida Statutes, is created to
139 read:
140 1005.11 Accountability for institutions licensed by the
141 Commission for Independent Education.—
142 (1) By March 15 of each year, the Commission for
143 Independent Education shall prepare an accountability report for
144 licensed institutions. The report must contain, at a minimum,
145 the graduation rates, including the number of graduates by
146 program; the retention rates; and the placement rates for all
147 licensed institutions.
148 (2) By November 30 of each year, each licensed institution
149 shall provide data on the graduation rate, retention rate, and
150 placement rate of the licensed institution to the commission in
151 a format prescribed by the commission. Placement rates must be
152 determined using the Florida Education and Training Placement
153 Information Program methodology. The commission shall establish
154 a common set of data definitions that are consistent with those
155 used by the United States Department of Education for
156 institutional reporting purposes.
157 (3) The commission shall impose an administrative fine of
158 not more than $1,000 when a licensed institution fails to timely
159 submit the required data to the commission pursuant to this
160 section. Administrative fines collected under this subsection
161 must be deposited into the Student Protection Fund.
162 (4) The commission shall establish by rule performance
163 benchmarks to identify high-performing institutions licensed by
164 the commission. Licensed institutions with graduation rates,
165 retention rates, and placement rates equal to or higher than the
166 average rates of all Florida universities, colleges, or career
167 centers, as appropriate, may receive and use the designation of
168 “high performing.”
169 Section 3. Paragraphs (c) and (d) of subsection (2) and
170 subsection (3) of section 1005.21, Florida Statutes, are amended
171 to read:
172 1005.21 Commission for Independent Education.—
173 (2) The Commission for Independent Education shall consist
174 of seven members who are residents of this state. The commission
175 shall function in matters concerning independent postsecondary
176 educational institutions in consumer protection, program
177 improvement, and licensure for institutions under its purview.
178 The Governor shall appoint the members of the commission who are
179 subject to confirmation by the Senate. The membership of the
180 commission shall consist of:
181 (c) One member who employs graduates of institutions
182 licensed by the commission. The member may not have any other
183 relationship with an institution subject to licensure by the
184 commission except for his or her status as an employer of
185 graduates of the institution from a public school district or
186 Florida College System institution who is an administrator of
187 career education.
188 (d) One member who is a graduate of an institution subject
189 to licensure by the commission. The member may not have any
190 other relationship with an institution subject to licensure by
191 the commission except for his or her status as an alumnus
192 representative of a college that meets the criteria of s.
193 1005.06(1)(f).
194 (3) The members of the commission shall be appointed to 3
195 year terms. Members may serve no more than three consecutive
196 terms or and until their successors are appointed and qualified,
197 whichever occurs first. If a vacancy on the commission occurs
198 before the expiration of a term, the Governor shall appoint a
199 successor to serve the unexpired portion of the term.
200 Section 4. Paragraphs (e) and (k) of subsection (1) of
201 section 1005.22, Florida Statutes, are amended, and paragraph
202 (j) is added to subsection (2) of that section, to read:
203 1005.22 Powers and duties of commission.—
204 (1) The commission shall:
205 (e) Administer the provisions of this chapter. To this end,
206 the commission has the following administrative powers and
207 responsibilities:
208 1. The commission shall adopt rules pursuant to ss.
209 120.536(1) and 120.54 for the operation and establishment of
210 independent postsecondary educational institutions. The
211 commission shall submit the rules to the State Board of
212 Education for approval or disapproval. If the state board does
213 not act on a rule within 60 days after receiving it, the rule
214 shall be filed immediately with the Department of State.
215 2. The commission shall approve and submit an annual budget
216 to the State Board of Education.
217 3. The commission shall transmit all fees, donations, and
218 other receipts of money to the Institutional Assessment Trust
219 Fund.
220 4. The commission shall expend funds as necessary to assist
221 in the application and enforcement of its powers and duties. The
222 Chief Financial Officer shall pay out all moneys and funds as
223 directed under this chapter upon vouchers approved by the
224 Department of Education for all lawful purposes necessary to
225 administering this chapter. The commission shall make annual
226 reports to the State Board of Education showing in detail
227 amounts received and all expenditures. The commission shall
228 include in its annual report to the State Board of Education a
229 statement of its major activities during the period covered by
230 the report.
231 (k) Establish and publicize the procedures for receiving
232 and responding to complaints from students, faculty, and others
233 concerning institutions or programs under the purview of the
234 commission, and keep records of such complaints in order to
235 determine the frequency and nature of complaints with respect to
236 specific institutions of higher education. The commission shall
237 appoint a committee to review any complaint that is not closed
238 within 90 days after receipt of the complaint.
239 (2) The commission may:
240 (j) Based on the performance of an institution licensed by
241 the commission, prohibit the institution from enrolling new
242 students or limit the number of students in a program at the
243 institution.
244 Section 5. Present subsections (5) through (15) of section
245 1005.31, Florida Statutes, are redesignated as subsections (6)
246 through (16), respectively, subsection (2) and present
247 subsection (6) of that section are amended, and a new subsection
248 (5) is added to that section, to read:
249 1005.31 Licensure of institutions.—
250 (2) The commission shall develop minimum standards by which
251 to evaluate institutions for licensure. These standards must
252 include, at a minimum, at least the institution’s name;,
253 financial stability;, purpose;, administrative organization;,
254 admissions and recruitment;, educational programs and
255 curricula;, retention and, completion, including a retention and
256 completion management plan; career placement; federal student
257 loan cohort default rate as calculated by the United States
258 Department of Education;, faculty;, learning resources;, student
259 personnel services;, physical plant and facilities;,
260 publications;, and disclosure statements about the status of the
261 institution with respect to professional certification and
262 licensure. The commission may adopt rules to ensure that
263 institutions licensed under this section meet these standards in
264 ways that are appropriate to achieve the stated intent of this
265 chapter, including provisions for nontraditional or distance
266 education programs and delivery. The commission shall deny a
267 renewal of an annual license for an institution whose federal
268 student loan cohort default rate exceeds 30 percent.
269 (5) The commission may require an institution that does not
270 provide sufficient evidence of financial stability at the time
271 of application for a provisional license or that is dependent
272 upon financial resources located outside the United States to
273 post and maintain a surety bond to assist each enrolled student
274 in completing the student’s program of enrollment in the event
275 that the institution closes before receiving its first annual
276 licensure renewal. In lieu of a surety bond, the commission may
277 require an institution to establish and maintain a cash-deposit
278 escrow account, or an irrevocable letter of credit, payable to
279 the commission in an amount not to exceed 50 percent of the
280 institution’s first-year projected revenue. The commission shall
281 adopt rules to administer this subsection.
282 (7)(6) The commission shall ensure through an investigative
283 process that applicants for licensure meet the standards as
284 defined in rule. Within 30 days after receipt of an application,
285 the commission shall examine the application, notify the
286 applicant of any apparent error or omission, and request any
287 additional necessary information from the applicant. When the
288 investigative process is not completed within the time set out
289 in s. 120.60(1) and the commission has reason to believe that
290 the applicant does not meet licensure standards, the commission
291 or the executive director of the commission may issue a 90-day
292 licensure delay, which shall be in writing and sufficient to
293 notify the applicant of the reason for the delay. The provisions
294 of this subsection shall control over any conflicting provisions
295 of s. 120.60(1).
296 Section 6. Paragraph (e) of subsection (1) and subsection
297 (3) of section 1005.32, Florida Statutes, are amended to read:
298 1005.32 Licensure by means of accreditation.—
299 (1) An independent postsecondary educational institution
300 that meets the following criteria may apply for a license by
301 means of accreditation from the commission:
302 (e) The institution’s federal student loan cohort default
303 rate, as calculated by the United States Department of
304 Education, does not exceed 30 percent The institution is a
305 Florida corporation.
306 (3) The commission may not require an institution granted a
307 license by means of accreditation to submit reports that differ
308 from the reports required by its accrediting association, except
309 that each institution must file with the commission an annual
310 audit report and a retention and completion management plan
311 pursuant to s. 1005.31. The institution shall also follow the
312 commission’s requirements for orderly closing, including
313 provisions for trainout or refunds and arranging for the proper
314 disposition of student and institutional records.
315 Section 7. Present subsections (3) and (4) of section
316 1005.36, Florida Statutes, are redesignated as subsections (4)
317 and (5), respectively, subsection (2) of that section is
318 amended, and a new subsection (3) is added to that section, to
319 read:
320 1005.36 Institutional closings.—
321 (2) At least 30 days before prior to closing an
322 institution, its owners, directors, or administrators must shall
323 notify the commission in writing of the closure of the
324 institution. The owners, directors, and administrators must
325 organize an orderly closure of the institution, which means at
326 least providing for the completion of training of its students.
327 The commission must approve any such plan. An owner, director,
328 or administrator who fails to notify the commission at least 30
329 days before prior to the institution’s closure, or who fails to
330 organize the orderly closure of the institution and the trainout
331 of the students, commits a misdemeanor of the first second
332 degree, punishable as provided in s. 775.082 or s. 775.083.
333 (3) By October 1, 2018, the commission shall establish a
334 Closed Institution Panel. The panel shall consist of at least
335 one commission member, one commission staff member, one
336 accrediting body staff member, and one administrator with
337 experience in managing licensed institutions. The commission
338 shall notify the panel upon the closing of a licensed
339 institution. For any closure that does not comply with the
340 requirements of subsection (2), or at the discretion of the
341 commission chair, the panel shall convene to implement measures
342 to minimize the academic, logistical, and financial impact on
343 students of the institution. The panel may secure student
344 records and, to the extent possible, maintain the educational
345 programs at the institution for at least 30 days after the panel
346 receives notification that the institution is closing in order
347 to assist each student with completion of his or her educational
348 program. The institution that is closing shall pay for all the
349 expenses incurred by the panel to conduct activities described
350 in this subsection.
351 Section 8. Section 1005.37, Florida Statutes, is amended to
352 read:
353 1005.37 Student Protection Fund.—
354 (1) The commission shall establish and administer a
355 statewide, fee-supported financial program through which funds
356 will be available to complete the training of a student who
357 enrolls in a licensed institution nonpublic school that
358 terminates a program or ceases operation before the student has
359 completed his or her program of study. The financial program is
360 named the Student Protection Fund.
361 (2) The commission is authorized to assess a fee from the
362 licensed institutions schools within its jurisdiction for such
363 purpose. The commission shall assess a licensed institution
364 school an additional fee for its eligibility for the Student
365 Protection Fund. The commission shall annually determine the
366 fees to support the fund; however, if the fund balance exceeds
367 $5 million on November 1 of any year, the commission may not
368 collect the fees in the next calendar year.
369 (3) If a licensed institution school terminates a program
370 before all students complete it, the commission shall also
371 assess that institution school a fee adequate to pay the full
372 cost to the Student Protection Fund of completing the training
373 of students.
374 (4) The fund shall consist entirely of fees assessed to
375 licensed institutions schools and may shall not be funded under
376 any circumstances by public funds, nor shall the commission make
377 payments or be obligated to make payments in excess of the
378 assessments actually received from licensed institutions schools
379 and deposited in the Institutional Assessment Trust Fund to the
380 credit of the Student Protection Fund.
381 (5) At each commission meeting, the commission shall
382 consider the need for and shall make required assessments, shall
383 review the collection status of unpaid assessments and take all
384 necessary steps to collect them, and shall review all moneys in
385 the fund and expenses incurred since the last reporting period.
386 This review must include administrative expenses, moneys
387 received, and payments made to students or to lending
388 institutions.
389 (6) Staff of the commission must immediately inform the
390 commission upon learning of the closing of a licensed
391 institution school or the termination of a program which that
392 could expose the fund to liability.
393 (7) The Student Protection Fund must be actuarially sound,
394 periodically audited by the Auditor General in connection with
395 his or her audit of the Department of Education, and reviewed to
396 determine if additional fees must be charged to licensed
397 institutions schools eligible to participate in the fund.
398 Section 9. Subsections (1), (3), and (4) of section
399 1005.39, Florida Statutes, are amended to read:
400 1005.39 Continuing education and training for
401 administrators and faculty.—
402 (1) The commission shall determine whether is authorized to
403 ensure that the administrators of licensed institutions are
404 qualified to conduct the operations of their respective
405 positions and shall to require such administrators and faculty
406 to receive continuing education and training as adopted by rule
407 of the commission. The positions for which the commission must
408 may review qualifications and require continuing education and
409 training may include the positions of chief administrator or
410 officer, chief campus officer, director of education or
411 training, placement director, admissions director, and financial
412 aid director and faculty members. By July 1, 2019, and annually
413 thereafter, the commission shall verify that all administrators
414 subject to continuing education requirements have completed
415 training on state and federal laws and regulations specifically
416 pertaining to the operation of nonpublic postsecondary
417 educational institutions.
418 (3) The commission shall adopt general qualifications for
419 each of the respective positions and establish guidelines for
420 the minimum amount and type of continuing education and training
421 to be required. The continuing education and training may be
422 provided by the commission, appropriate state or federal
423 agencies, or professional organizations familiar with the
424 requirements of the particular administrative positions.
425 Licensed institutions may also provide continuing education upon
426 approval of the commission. The actual curricula should be left
427 to the discretion of those agencies, and organizations, and, if
428 approved, licensed institutions.
429 (4) Evidence of administrator the administrator’s and
430 faculty member’s compliance with the continuing education and
431 training requirements established by the commission shall may be
432 included in the initial and renewal application forms provided
433 to by the commission. Actual records of the continuing education
434 and training received by administrators and faculty shall be
435 maintained at the institution and available for inspection at
436 all times.
437 Section 10. Subsection (2) of section 1011.81, Florida
438 Statutes, is amended to read:
439 1011.81 Florida College System Program Fund.—
440 (2) Performance funding for industry certifications for
441 Florida College System institutions must take into consideration
442 an institution’s federal student loan cohort default rate and is
443 contingent upon specific appropriation in the General
444 Appropriations Act and shall be determined as follows:
445 (a) Occupational areas for which industry certifications
446 may be earned, as established in the General Appropriations Act,
447 are eligible for performance funding. Priority shall be given to
448 the occupational areas emphasized in state, national, or
449 corporate grants provided to Florida educational institutions.
450 (b) The Chancellor of the Florida College System shall
451 identify the industry certifications eligible for funding on the
452 CAPE Postsecondary Industry Certification Funding List approved
453 by the State Board of Education pursuant to s. 1008.44, based on
454 the occupational areas specified in the General Appropriations
455 Act.
456 (c) Each Florida College System institution shall be
457 provided $1,000 for each industry certification earned by a
458 student. The maximum amount of funding appropriated for
459 performance funding pursuant to this subsection shall be limited
460 to $15 million annually. If funds are insufficient to fully fund
461 the calculated total award, such funds shall be prorated.
462 Section 11. Paragraph (c) of subsection (1) of section
463 1011.905, Florida Statutes, is amended to read:
464 1011.905 Performance funding for state universities.—
465 (1) State performance funds for the State University System
466 shall be based on indicators of system and institutional
467 attainment of performance expectations. For the 2012-2013
468 through at least the 2016-2017 fiscal year, the Board of
469 Governors shall review and rank each state university that
470 applies for performance funding, as provided in the General
471 Appropriations Act, based on the following formula:
472 (c) Fifty percent of a state university’s score shall be
473 based on:
474 1. Factors determined by the Board of Governors which
475 relate to increasing the probability that graduates who have
476 earned degrees in the programs described in paragraph (a) will
477 be employed in high-skill, high-wage, and high-demand
478 employment; and.
479 2. The state university’s federal student loan cohort
480 default rate.
481 Section 12. This act shall take effect July 1, 2018.