Bill Text: OR HB2190 | 2013 | Regular Session | Introduced

Oregon House Bill 2190 (Prior Session Legislation)

Bill Title: Relating to finances of career schools; declaring an emergency.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2190 Detail]

Download: Oregon-2013-HB2190-Introduced.html



     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1956

                         House Bill 2190

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of House Interim Committee on Education)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires State Board of Education to adopt minimum standards
related to financial soundness of owner of career school. Allows
board to consider financial condition of owner of career school
when establishing payment schedule for Tuition Protection Fund.
  Declares emergency, effective July 1, 2013.

                        A BILL FOR AN ACT
Relating to finances of career schools; amending ORS 345.110 and
  345.325; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 345.325 is amended to read:
  345.325. The State Board of Education shall adopt by rule
minimum standards for the licensing of career schools under ORS
345.010 to 345.450 that are reasonably calculated to ensure that:
  (1) The quality and content of each course or program of
instruction can achieve its stated objective;
  (2) The facilities, instructional equipment and materials are
sufficient to enable students to achieve the program goals and
are adequate for the purposes of the program;
  (3) The directors, administrators and instructors are properly
qualified;
  (4) Prior to an applicant signing an enrollment agreement, the
 { + career + } school provides the applicant with a catalog or
brochure that includes an accurate description of the program for
which the applicant is enrolling, total costs of tuition and fees
and other information specified by rule;
  (5) Upon satisfactory completion of instruction and training,
the student is given appropriate educational credentials;
  (6) Adequate records and standard transcripts are maintained;
  (7) The career school is maintained and operated in compliance
with all applicable ordinances and laws;
  (8) The career school { + , or the owner of the career
school, + } is financially sound and capable of fulfilling
 { - its - }   { + the school's + } commitments to students;
  (9) Neither the career school nor its agents engage in
advertising, sales, collection, credit or other practices of any
type   { - which - }   { + that + } are unlawful under ORS
646.608;
  (10) The directors, administrators, supervisors and instructors
of the  { + career + } school are of good reputation and
character, except that a school shall not be placed on probation
or a license shall not be denied, suspended or revoked because a
faculty member has been convicted of a crime except as authorized
under ORS 670.280;
  (11) Any student housing owned, maintained or approved by the
career school is appropriate, safe and adequate;
  (12) The  { + career + } school has a written placement
assistance plan; and
  (13) A license application from a new school or an application
for approval of a new program from an existing school shall
include labor market information that identifies the need for the
new school or program.
  SECTION 2. ORS 345.325, as amended by section 33, chapter 104,
Oregon Laws 2012, is amended to read:
  345.325. The Higher Education Coordinating Commission shall
adopt by rule minimum standards for the licensing of career
schools under ORS 345.010 to 345.450 that are reasonably
calculated to ensure that:
  (1) The quality and content of each course or program of
instruction can achieve its stated objective;
  (2) The facilities, instructional equipment and materials are
sufficient to enable students to achieve the program goals and
are adequate for the purposes of the program;
  (3) The directors, administrators and instructors are properly
qualified;
  (4) Prior to an applicant signing an enrollment agreement, the
 { + career + } school provides the applicant with a catalog or
brochure that includes an accurate description of the program for
which the applicant is enrolling, total costs of tuition and fees
and other information specified by rule;
  (5) Upon satisfactory completion of instruction and training,
the student is given appropriate educational credentials;
  (6) Adequate records and standard transcripts are maintained;
  (7) The career school is maintained and operated in compliance
with all applicable ordinances and laws;
  (8) The career school { + , or the owner of the career
school, + } is financially sound and capable of fulfilling
 { - its - }   { + the school's + } commitments to students;
  (9) Neither the career school nor its agents engage in
advertising, sales, collection, credit or other practices of any
type   { - which - }   { + that + } are unlawful under ORS
646.608;
  (10) The directors, administrators, supervisors and instructors
of the  { + career + } school are of good reputation and
character, except that a school shall not be placed on probation
or a license shall not be denied, suspended or revoked because a
faculty member has been convicted of a crime except as authorized
under ORS 670.280;
  (11) Any student housing owned, maintained or approved by the
career school is appropriate, safe and adequate;
  (12) The  { + career + } school has a written placement
assistance plan; and
  (13) A license application from a new school or an application
for approval of a new program from an existing school shall
include labor market information that identifies the need for the
new school or program.
  SECTION 3. ORS 345.110 is amended to read:
  345.110. (1) The Tuition Protection Fund is established
separate and distinct from the General Fund. Interest earned by
the fund shall be credited to the fund. Proceeds of the fund are
continuously appropriated to the Department of Education to
protect students when a career school ceases to provide
educational services and for administrative expenses incurred
under subsection (5) of this section.
  (2) The Superintendent of Public Instruction shall maintain and
administer the fund, and the State Board of Education shall adopt
by rule procedures governing the administration and maintenance
of the fund, including requirements relating to contributions to
and claims against the fund.
  (3) { + (a) + } Each career school shall pay to the Tuition
Protection Fund an initial capitalization deposit in amounts and
within time limits established by rule of the board. Thereafter,
each school shall make installment payments based on a matrix
adopted by rule of the board.
   { +  (b) + } In establishing the amount and frequency of
payments, the board may consider { + :
  (A) + } The enrollment and financial condition of each
school { + ; + }
  { - and - }
   { +  (B) The financial condition of the owner of each school;
and
  (C) + } Such other factors as the board considers appropriate.
   { +  (c) + } The superintendent may deny, suspend or revoke
the license of a school   { - which - }   { + that + } fails to
make payments or fails to conform to other requirements of this
section or rules adopted by the board under this section.
  (4) The superintendent shall deposit moneys received under this
section with the State Treasurer in the Tuition Protection Fund.
  (5) The superintendent may disburse moneys from the fund by
checks or orders drawn upon the State Treasurer in conformance
with rules of the board and only for tuition protection purposes,
including the superintendent's costs in administering and
maintaining the fund.
  (6) The superintendent may enter into contracts to carry out
the purposes of the fund. The provisions of ORS 279.835 to
279.855 and ORS chapters 279A and 279B do not apply to contracts
entered into under this subsection.
  SECTION 4. ORS 345.110, as amended by section 29, chapter 104,
Oregon Laws 2012, is amended to read:
  345.110. (1) The Tuition Protection Fund is established
separate and distinct from the General Fund. Interest earned by
the fund shall be credited to the fund. Proceeds of the fund are
continuously appropriated to the Higher Education Coordinating
Commission to protect students when a career school ceases to
provide educational services and for administrative expenses
incurred under subsection (5) of this section.
  (2) The commission shall maintain and administer the fund and
shall adopt by rule procedures governing the administration and
maintenance of the fund, including requirements relating to
contributions to and claims against the fund.
  (3) { + (a) + } Each career school shall pay to the Tuition
Protection Fund an initial capitalization deposit in amounts and
within time limits established by rule of the commission.
Thereafter, each school shall make installment payments based on
a matrix adopted by rule of the commission.
   { +  (b) + } In establishing the amount and frequency of
payments, the commission may consider { + :
  (A) + } The enrollment and financial condition of each
school { + ; + }
  { - and - }
   { +  (B) The financial condition of the owner of each school;
and
  (C) + } Such other factors as the commission considers
appropriate.
   { +  (c) + } The commission may deny, suspend or revoke the
license of a school   { - which - }   { + that + } fails to make
payments or fails to conform to other requirements of this
section or rules adopted by the commission under this section.
  (4) The commission shall deposit moneys received under this
section with the State Treasurer in the Tuition Protection Fund.
  (5) The commission may disburse moneys from the fund by checks
or orders drawn upon the State Treasurer in conformance with
rules of the commission and only for tuition protection purposes,
including the commission's costs in administering and maintaining
the fund.
  (6) The commission may enter into contracts to carry out the
purposes of the fund. The provisions of ORS 279.835 to 279.855
and ORS chapters 279A and 279B do not apply to contracts entered
into under this subsection.
  SECTION 5.  { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect July 1,
2013. + }
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