Bill Text: OR SB103 | 2013 | Regular Session | Introduced
Bill Title: Relating to career schools; declaring an emergency.
Spectrum: Unknown
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB103 Detail]
Download: Oregon-2013-SB103-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 635 Senate Bill 103 Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conformance with presession filing rules, indicating neither advocacy nor opposition on the part of the President (at the request of Governor John A. Kitzhaber, M.D., for Department of 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. Expands definition of 'agent' for career schools. Establishes requirements to transition school between career school regulated by Department of Education and career school regulated by agency of executive department. Allows Superintendent of Public Instruction to grant exemption to authorize agency to regulate certain career schools. Allows State Board of Education to adopt rules related to general governance and operation of career schools. Authorizes board to adopt fees for certain activities related to career schools. Allows board to consider financial condition of owner of career school when establishing payment schedule for Tuition Protection Fund. Requires board to adopt minimum standards related to financial soundness of owner of career school. Clarifies terms of probation and suspension for licensee of career school. Modifies training requirements for hair design, barbering, esthetics and nail technology. Declares emergency, effective July 1, 2013. A BILL FOR AN ACT Relating to career schools; creating new provisions; amending ORS 345.010, 345.015, 345.020, 345.070, 345.080, 345.110, 345.120, 345.325, 345.330 and 345.400 and section 47, chapter 104, Oregon Laws 2012; and declaring an emergency. Be It Enacted by the People of the State of Oregon: SECTION 1. ORS 345.010 is amended to read: 345.010. As used in ORS 345.010 to 345.450 and 345.992 to 345.997: (1) 'Agent' means { - a person - } { + an individual who: (a) Is + } employed by or for a career school { + , or is working on behalf of the school under a contract, + } for the purpose of procuring students, enrollees or subscribers { + of the school + } by solicitation in any form { - , - } { + that is + } made at a place or places other than the school office or place of business of { - such school. - } { + the school; or (b) At the request of a career school or under a contract with a career school, provides information technology services for the school and has control over information technology systems that are used for the purpose of procuring students, enrollees or subscribers of the school by solicitation in any form that is made by technology that is accessed at a place or places other than the school office or place of business of the school. + } (2) 'Barbering' has the meaning given that term in ORS 690.005. (3) 'Board' means the State Board of Education. (4) 'Career school' or 'school' means any private proprietary professional, technical, home study, correspondence, business or other school instruction, organization or person that offers any instruction or training for the purpose or purported purpose of instructing, training or preparing persons for any profession. (5) 'Esthetics' has the meaning given in ORS 690.005. (6) 'Hair design' has the meaning given in ORS 690.005. (7) 'License' means the authority the career school has been granted to operate under ORS 345.010 to 345.450. (8) 'Nail technology' has the meaning given in ORS 690.005. (9) 'Registration' means the approval by the Superintendent of Public Instruction of a teacher or agent to instruct in or to represent the school. (10) 'Superintendent' means Superintendent of Public Instruction. SECTION 2. ORS 345.010, as amended by section 20, chapter 104, Oregon Laws 2012, is amended to read: 345.010. As used in ORS 345.010 to 345.450 and 345.992 to 345.997: (1) 'Agent' means { - a person - } { + an individual who: (a) Is + } employed by or for a career school { + , or is working on behalf of the school under a contract, + } for the purpose of procuring students, enrollees or subscribers { + of the school + } by solicitation in any form { - , - } { + that is + } made at a place or places other than the school office or place of business of { - such school. - } { + the school; or (b) At the request of a career school or under a contract with a career school, provides information technology services for the school and has control over information technology systems that are used for the purpose of procuring students, enrollees or subscribers of the school by solicitation in any form that is made by technology that is accessed at a place or places other than the school office or place of business of the school. + } (2) 'Barbering' has the meaning given that term in ORS 690.005. (3) 'Career school' or 'school' means any private proprietary professional, technical, home study, correspondence, business or other school instruction, organization or person that offers any instruction or training for the purpose or purported purpose of instructing, training or preparing persons for any profession. (4) 'Esthetics' has the meaning given in ORS 690.005. (5) 'Hair design' has the meaning given in ORS 690.005. (6) 'License' means the authority the career school has been granted to operate under ORS 345.010 to 345.450. (7) 'Nail technology' has the meaning given in ORS 690.005. (8) 'Registration' means the approval by the Higher Education Coordinating Commission of a teacher or agent to instruct in or to represent the school. SECTION 3. { + Section 4 of this 2013 Act is added to and made a part of ORS 345.010 to 345.450. + } SECTION 4. { + (1) As used in this section, 'state agency ' means an agency of the executive department. (2) If the Superintendent of Public Instruction determines that a state agency is willing and able to regulate a career school in a manner that guarantees the school meets the standards described in ORS 345.325, the superintendent may grant an exemption from the licensure requirements of ORS 345.010 to 345.450. (3) A career school for which an exemption is granted as provided by this section must continue to be licensed as a career school and meet all of the requirements of ORS 345.010 to 345.450 until: (a) All of the school's operations are approved by the state agency; and (b) Each student who was first enrolled in the school when the school was subject to the licensure requirements of ORS 345.010 to 345.450 has: (A) Completed the course or program for which the student contracted with the school; or (B) Terminated enrollment in the school for any reason. (4) The regulatory authority for the career school transfers to the state agency upon the approval of all of the school's operations by the state agency and the granting of the exemption by the superintendent as provided by this section. (5) A student enrolled in a career school for which an exemption is granted as provided by this section is eligible for moneys from the Tuition Protection Fund established under ORS 345.110 if the student: (a) Qualifies for the moneys under rules adopted by the State Board of Education under ORS 345.110; and (b) Was first enrolled in the school when the school was subject to the licensure requirements of ORS 345.010 to 345.450. (6) If a state agency notifies the superintendent that the state agency is no longer willing to regulate a career school: (a) The exemption granted by the superintendent is revoked, and the regulatory authority for the career school transfers to the superintendent when each student who was first enrolled in the school at the time the school was regulated by the state agency has: (A) Completed the course or program for which the student contracted with the school; or (B) Terminated enrollment in the school for any reason; (b) The career school must submit an application to the superintendent for licensure as a career school as provided by ORS 345.010 to 345.450; and (c) The career school is prohibited from enrolling new students from the date on which the exemption is revoked under paragraph (a) of this subsection until the date on which the superintendent approves an application for licensure submitted under paragraph (b) of this subsection. + } SECTION 5. Section 4 of this 2013 Act is amended to read: { + Sec. 4. + } (1) As used in this section, 'state agency' means an agency of the executive department. (2) If the { - Superintendent of Public Instruction - } { + Higher Education Coordinating Commission + } determines that a state agency is willing and able to regulate a career school in a manner that guarantees the school meets the standards described in ORS 345.325, the { - superintendent - } { + commission + } may grant an exemption from the licensure requirements of ORS 345.010 to 345.450. (3) A career school for which an exemption is granted as provided by this section must continue to be licensed as a career school and meet all of the requirements of ORS 345.010 to 345.450 until: (a) All of the school's operations are approved by the state agency; and (b) Each student who was first enrolled in the school when the school was subject to the licensure requirements of ORS 345.010 to 345.450 has: (A) Completed the course or program for which the student contracted with the school; or (B) Terminated enrollment in the school for any reason. (4) The regulatory authority for the career school transfers to the state agency upon the approval of all of the school's operations by the state agency and the granting of the exemption by the { - superintendent - } { + commission + } as provided by this section. (5) A student enrolled in a career school for which an exemption is granted as provided by this section is eligible for moneys from the Tuition Protection Fund established under ORS 345.110 if the student: (a) Qualifies for the moneys under rules adopted by the { - State Board of Education - } { + commission + } under ORS 345.110; and (b) Was first enrolled in the school when the school was subject to the licensure requirements of ORS 345.010 to 345.450. (6) If a state agency notifies the { - superintendent - } { + commission + } that the state agency is no longer willing to regulate a career school: (a) The exemption granted by the { - superintendent - } { + commission + } is revoked, and the regulatory authority for the career school transfers to the { - superintendent - } { + commission + } when each student who was first enrolled in the school at the time the school was regulated by the state agency has: (A) Completed the course or program for which the student contracted with the school; or (B) Terminated enrollment in the school for any reason; (b) The career school must submit an application to the { - superintendent - } { + commission + } for licensure as a career school as provided by ORS 345.010 to 345.450; and (c) The career school is prohibited from enrolling new students from the date on which the exemption is revoked under paragraph (a) of this subsection until the date on which the { - superintendent - } { + commission + } approves an application for licensure submitted under paragraph (b) of this subsection. SECTION 6. Section 47, chapter 104, Oregon Laws 2012, is amended to read: { + Sec. 47. + } Sections 13 to 19 { - of this 2012 Act and - } { + , chapter 104, Oregon Laws 2012, + } the amendments to ORS 341.455, 345.010, 345.015, 345.017, 345.020, 345.030, 345.040, 345.060, 345.070, 345.080, 345.110, 345.115, 345.117, 345.120, 345.325, 345.330, 345.340, 345.400, 345.430, 345.450, 345.995, 348.040, 348.070, 418.658, 471.580, 690.225 and 696.182 by sections 20 to 46 { - of this 2012 Act - } { + , chapter 104, Oregon Laws 2012, and the amendments to section 4 of this 2013 Act by section 5 of this 2013 Act + } become operative on July 1, 2013. SECTION 7. ORS 345.015 is amended to read: 345.015. ORS 345.010 to 345.450 do not apply to: (1) Instruction or training solely avocational or recreational in nature or to institutions offering such education exclusively. (2) Instruction or training sponsored or offered by a bona fide trade, business, professional or fraternal organization or by a business solely for the organization's membership or the business's employees. (3) Instruction or training sponsored, offered or contracted by organizations, institutions or agencies, if the instruction or training is advertised or promoted to be in the nature of professional self-improvement or personal self-improvement and the instruction or training is not: (a) Advertised or promoted as leading to or fulfilling the requirements for licensing, certification, accreditation or education credentials; or (b) Leading to an occupation, employment or other activity for which a person may reasonably expect financial compensation. (4) Courses offered in hospitals that meet standards prescribed by the American Medical Association or national accrediting associations for nursing. (5) Courses, instruction or training offered for a limited number of hours, as defined by rule of the State Board of Education. (6) Schools offering only courses of an advanced training or continuing educational nature when offered solely to licensed practitioners and people previously qualified or employed in the profession for which a course is being offered. (7) Schools that the Superintendent of Public Instruction { + : (a) + } Determines are adequately regulated by other means that guarantee the school meets the standards { - of - } { + described in + } ORS 345.325 { + ; and (b) As a result of the determination described in paragraph (a) of this subsection, grants an exemption from the licensure requirements of ORS 345.010 to 345.450 + }. (8) Schools offering only review instruction to prepare a student to take an examination to enter a profession, where the student has completed prior training related to the profession. (9) Schools described in ORS 348.597 and, except as provided in ORS 345.017, schools approved by the Higher Education Coordinating Commission to confer or offer to confer academic degrees under ORS 348.606. (10) Any parochial or denominational institution providing instruction or training relating solely to religion and that does not grant degrees. SECTION 8. ORS 345.015, as amended by section 21, chapter 104, Oregon Laws 2012, is amended to read: 345.015. ORS 345.010 to 345.450 do not apply to: (1) Instruction or training solely avocational or recreational in nature or to institutions offering such education exclusively. (2) Instruction or training sponsored or offered by a bona fide trade, business, professional or fraternal organization or by a business solely for the organization's membership or the business's employees. (3) Instruction or training sponsored, offered or contracted by organizations, institutions or agencies, if the instruction or training is advertised or promoted to be in the nature of professional self-improvement or personal self-improvement and the instruction or training is not: (a) Advertised or promoted as leading to or fulfilling the requirements for licensing, certification, accreditation or education credentials; or (b) Leading to an occupation, employment or other activity for which a person may reasonably expect financial compensation. (4) Courses offered in hospitals that meet standards prescribed by the American Medical Association or national accrediting associations for nursing. (5) Courses, instruction or training offered for a limited number of hours, as defined by rule of the Higher Education Coordinating Commission. (6) Schools offering only courses of an advanced training or continuing educational nature when offered solely to licensed practitioners and people previously qualified or employed in the profession for which a course is being offered. (7) Schools that the Higher Education Coordinating Commission { + : (a) + } Determines are adequately regulated by other means that guarantee the school meets the standards { - of - } { + described in + } ORS 345.325 { + ; and (b) As a result of the determination described in paragraph (a) of this subsection, grants an exemption from the licensure requirements of ORS 345.010 to 345.450 + }. (8) Schools offering only review instruction to prepare a student to take an examination to enter a profession, where the student has completed prior training related to the profession. (9) Schools described in ORS 348.597 and, except as provided in ORS 345.017, schools approved by the Higher Education Coordinating Commission to confer or offer to confer academic degrees under ORS 348.606. (10) Any parochial or denominational institution providing instruction or training relating solely to religion and that does not grant degrees. { + + } SECTION 9. ORS 345.020 is amended to read: 345.020. { + (1) The State Board of Education may adopt rules pursuant to ORS chapter 183 for the general governance and operation of career schools. Rules adopted by the board may be specific to the individual professions for which career schools provide instruction or training. + } { - (1) - } { + (2) + } The Superintendent of Public Instruction shall administer ORS 345.010 to 345.450 and 345.992 to 345.997 and shall enforce all laws and rules relating to the licensing of career schools and agents. { - (2) - } { + (3) + } The superintendent may establish procedures whereby schools become eligible to participate in federal student assistance programs if approved by the United States Department of Education. { - (3) - } { + (4) + } The superintendent and the employees of the Department of Education { - shall - } { + may + } not have financial interests in any career school and { - shall - } { + may + } not act as agents or employees { - thereof - } { + of any career school + }. SECTION 10. ORS 345.020, as amended by section 23, chapter 104, Oregon Laws 2012, is amended to read: 345.020. { + (1) The Higher Education Coordinating Commission may adopt rules pursuant to ORS chapter 183 for the general governance and operation of career schools. Rules adopted by the commission may be specific to the individual professions for which career schools provide instruction or training. + } { - (1) - } { + (2) + } The { - Higher Education Coordinating - } commission shall administer ORS 345.010 to 345.450 and 345.992 to 345.997 and shall enforce all laws and rules relating to the licensing of career schools and agents. { - (2) - } { + (3) + } The commission may establish procedures whereby schools become eligible to participate in federal student assistance programs if approved by the United States Department of Education. { - (3) - } { + (4) + } Members and employees of the commission may not have financial interests in any career school and may not act as agents or employees { - thereof - } { + of any career school + }. SECTION 11. ORS 345.070 is amended to read: 345.070. { + (1) + } The employing school shall issue an identification credential to each agent registered under ORS 345.010 to 345.450 in the form and size prescribed by the Superintendent of Public Instruction. Each agent shall carry the credential at all times while engaged as an agent of the school. { + (2) The requirements of this section apply only to agents described in ORS 345.010 (1)(a). + } SECTION 12. ORS 345.070, as amended by section 27, chapter 104, Oregon Laws 2012, is amended to read: 345.070. { + (1) + } The employing school shall issue an identification credential to each agent registered under ORS 345.010 to 345.450 in the form and size prescribed by the Higher Education Coordinating Commission. Each agent shall carry the credential at all times while engaged as an agent of the school. { + (2) The requirements of this section apply only to agents described in ORS 345.010 (1)(a). + } SECTION 13. ORS 345.080 is amended to read: 345.080. (1) Before issuing any licenses under ORS 345.010 to 345.450, the Superintendent of Public Instruction shall collect the following nonrefundable, annual license fees: ? _____________________________________________________________ ? ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - In-State Schools Tuition Income Range Fee - } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - $ 0 - 15,000$ 450 15,001 -50,000 600 50,001 125,000 750 125,001 250,000 1,050 250,001 500,000 1,350 500,001 750,000 1,650 750,001,000,000 1,950 Ove1,000,000 2,250 - } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - Out-of-State Schools Tuition Income Range Fee - } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - $ 0 - 50,000$ 1,350 50,001 250,000 1,650 250,001 500,000 1,950 500,001 750,000 2,250 750,001,000,000 2,550 Ove1,000,000 2,850 - } ? _____________________________________________________________ ? ____________________________________________________________ END OF POSSIBLE IRREGULAR TABULAR TEXT ____________________________________________________________ { - (2) The State Board of Education may adopt, by rule, fees for teacher registration and fees for providing copies of student transcripts maintained at the Department of Education. - } { - (3) The board may adopt, by rule, fees for conducting a state or nationwide criminal background check under ORS 181.534 and may collect fees for each criminal records check. Fees collected as provided by this subsection are in addition to any other fees collected by the department. - } ________________________________________________________________ ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { + In-State Schools Tuition Income Range Fee + } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { + $ 0 - 15,000$ 600 15,001 -50,000 800 50,001 125,000 1,000 125,001 250,000 1,425 250,001 500,000 1,850 500,001 750,000 2,275 750,001,000,000 2,700 Ove1,000,000 3,125 + } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { + Out-of-State Schools Tuition Income Range Fee + } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { + $ 0 - 50,000$ 1,850 50,001 250,000 2,275 250,001 500,000 2,700 500,001 750,000 3,125 750,001,000,000 3,550 Ove1,000,000 3,975 + } ________________________________________________________________ ____________________________________________________________ END OF POSSIBLE IRREGULAR TABULAR TEXT ____________________________________________________________ { + (2) The State Board of Education may adopt, by rule, fees for: (a) Teacher registrations; (b) Copies of student transcripts maintained at the Department of Education; (c) Submissions of applications to renew a license after the due date established by rule of the board; (d) Submissions of payments to the Tuition Protection Fund established under ORS 345.110 after the time limits established by rule of the board; and (e) Investigative costs incurred by the department when the department determines that the career school has violated any provision of ORS 345.010 to 345.450 or any applicable rule. (3) In addition to any fees collected by the superintendent, the superintendent may charge the fee established by rule under ORS 181.534 for a nationwide criminal records check. + } (4) All fees collected under this section shall be paid to the credit of the department. Such moneys are continuously appropriated to the department and shall be used for the administration of the licensing program under ORS 345.010 to 345.450. SECTION 14. ORS 345.080, as amended by section 28, chapter 104, Oregon Laws 2012, is amended to read: 345.080. (1) Before issuing any licenses under ORS 345.010 to 345.450, the Higher Education Coordinating Commission shall collect the following nonrefundable, annual license fees: ? _____________________________________________________________ ? ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - In-State Schools Tuition Income Range Fee - } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - $ 0 - 15,000$ 450 15,001 -50,000 600 50,001 125,000 750 125,001 250,000 1,050 250,001 500,000 1,350 500,001 750,000 1,650 750,001,000,000 1,950 Ove1,000,000 2,250 - } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - Out-of-State Schools Tuition Income Range Fee - } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - $ 0 - 50,000$ 1,350 50,001 250,000 1,650 250,001 500,000 1,950 500,001 750,000 2,250 750,001,000,000 2,550 Ove1,000,000 2,850 - } ? _____________________________________________________________ ? ____________________________________________________________ END OF POSSIBLE IRREGULAR TABULAR TEXT ____________________________________________________________ { - (2) The commission may adopt, by rule, fees for teacher registration and fees for providing copies of student transcripts maintained by the commission. - } { - (3) The commission may adopt, by rule, fees for conducting a state or nationwide criminal background check under ORS 181.534 and may collect fees for each criminal records check. Fees collected as provided by this subsection are in addition to any other fees collected by the commission. - } ________________________________________________________________ ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { + In-State Schools Tuition Income Range Fee + } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { + $ 0 - 15,000$ 600 15,001 -50,000 800 50,001 125,000 1,000 125,001 250,000 1,425 250,001 500,000 1,850 500,001 750,000 2,275 750,001,000,000 2,700 Ove1,000,000 3,125 + } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { + Out-of-State Schools Tuition Income Range Fee + } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { + $ 0 - 50,000$ 1,850 50,001 250,000 2,275 250,001 500,000 2,700 500,001 750,000 3,125 750,001,000,000 3,550 Ove1,000,000 3,975 + } ________________________________________________________________ ____________________________________________________________ END OF POSSIBLE IRREGULAR TABULAR TEXT ____________________________________________________________ { + (2) The commission may adopt, by rule, fees for: (a) Teacher registrations; (b) Copies of student transcripts maintained by the commission; (c) Submissions of applications to renew a license after the due date established by rule of the commission; (d) Submissions of payments to the Tuition Protection Fund established under ORS 345.110 after the time limits established by rule of the commission; and (e) Investigative costs incurred by the commission when the commission determines that the career school has violated ORS 345.010 to 345.450 or any applicable rule. (3) In addition to any fees collected by the commission, the commission may charge the fee established by rule under ORS 181.534 for a nationwide criminal records check. + } (4) All fees collected under this section shall be paid to the credit of the commission. Such moneys are continuously appropriated to the commission and shall be used for the administration of the licensing program under ORS 345.010 to 345.450. SECTION 15. ORS 345.080, as amended by section 28, chapter 104, Oregon Laws 2012, and section 14 of this 2013 Act, is amended to read: 345.080. (1) Before issuing any licenses under ORS 345.010 to 345.450, the Higher Education Coordinating Commission shall collect { - the following nonrefundable, annual license fees: - } { + a nonrefundable annual license fee established by the commission by rule. + } ? _____________________________________________________________ ? ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - In-State Schools Tuition Income Range Fee - } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - $ 0 - 15,000$ 600 15,001 -50,000 800 50,001 125,000 1,000 125,001 250,000 1,425 250,001 500,000 1,850 500,001 750,000 2,275 750,001,000,000 2,700 Ove1,000,000 3,125 - } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - Out-of-State Schools Tuition Income Range Fee - } ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ { - $ 0 - 50,000$ 1,850 50,001 250,000 2,275 250,001 500,000 2,700 500,001 750,000 3,125 750,001,000,000 3,550 Ove1,000,000 3,975 - } ? _____________________________________________________________ ? ____________________________________________________________ END OF POSSIBLE IRREGULAR TABULAR TEXT ____________________________________________________________ (2) The commission may adopt, by rule, fees for: (a) Teacher registrations; (b) Copies of student transcripts maintained by the commission; (c) Submissions of applications to renew a license after the due date established by rule of the commission; (d) Submissions of payments to the Tuition Protection Fund established under ORS 345.110 after the time limits established by rule of the commission; and (e) Investigative costs incurred by the commission when the commission determines that the career school has violated ORS 345.010 to 345.450 or any applicable rule. (3) In addition to any fees collected by the commission, the commission may charge the fee established by rule under ORS 181.534 for a nationwide criminal records check. (4) All fees collected under this section shall be paid to the credit of the commission. Such moneys are continuously appropriated to the commission and shall be used for the administration of the licensing program under ORS 345.010 to 345.450. SECTION 16. { + (1) The amendments to ORS 345.080 by section 15 of this 2013 Act become operative on July 1, 2015. (2) Until the Higher Education Coordinating Commission first adopts rules pursuant to ORS 345.080 as amended by section 15 of this 2013 Act, the commission may collect the annual license fees established by ORS 345.080 as amended by section 14 of this 2013 Act. + } SECTION 17. 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 18. 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 19. ORS 345.120 is amended to read: 345.120. (1) On the written complaint of any person, the Superintendent of Public Instruction shall, and on the superintendent's own motion may, investigate the actions of any career school or agent, or any person who assumes to act in either capacity within this state. (2) As a result of the investigation, and in addition to any penalty that may be imposed under ORS 345.992, the superintendent may place a licensee on probation or may suspend or revoke any license issued under ORS 345.010 to 345.450 when the licensee has: (a) Obtained a license by misrepresentation. (b) Violated ORS 345.010 to 345.450 or any applicable rule. (c) Ceased to engage in the business authorized by the license. (d) Willfully used or employed any method, act or practice declared unlawful by ORS 646.608. (3) When notice of suspension or revocation is issued, the licensee shall be notified and, upon request, shall be granted a contested case hearing under ORS 183.310 (2). (4) { + (a) A licensee placed on probation may be subjected to conditions, which may include prohibitions on advertising, recruiting students or enrolling students. A licensee placed on probation may remain in operation to complete the training of students enrolled at the career school on the effective date of the probation. (b) + }A licensee placed on probation must be formally notified by the superintendent { - that it has - } { + of the conditions of probation and of the + } deficiencies that must be corrected within a time specified in the notice. { - (5) A licensee whose license is suspended is prohibited from advertising, recruiting or enrolling students but may remain in operation to complete training of students enrolled on the effective date of the suspension. - } { + (5) A licensee whose license is suspended may not engage in any activities for which the license is required from the time the superintendent imposes the suspension until the time the suspension is removed. + } (6) A licensee whose license has been revoked is not authorized to continue in operation on and after the effective date of the revocation. SECTION 20. ORS 345.120, as amended by section 32, chapter 104, Oregon Laws 2012, is amended to read: 345.120. (1) On the written complaint of any person, the Higher Education Coordinating Commission shall, and on the commission's own motion may, investigate the actions of any career school or agent, or any person who assumes to act in either capacity within this state. (2) As a result of the investigation, and in addition to any penalty that may be imposed under ORS 345.992, the commission may place a licensee on probation or may suspend or revoke any license issued under ORS 345.010 to 345.450 when the licensee has: (a) Obtained a license by misrepresentation. (b) Violated ORS 345.010 to 345.450 or any applicable rule. (c) Ceased to engage in the business authorized by the license. (d) Willfully used or employed any method, act or practice declared unlawful by ORS 646.608. (3) When notice of suspension or revocation is issued, the licensee shall be notified and, upon request, shall be granted a contested case hearing under ORS 183.310 (2). (4) { + (a) A licensee placed on probation may be subjected to conditions, which may include prohibitions on advertising, recruiting students or enrolling students. A licensee placed on probation may remain in operation to complete the training of students enrolled at the career school on the effective date of the probation. (b) + }A licensee placed on probation must be formally notified by the commission { - that it has - } { + of the conditions of probation and of the + } deficiencies that must be corrected within a time specified in the notice. { - (5) A licensee whose license is suspended is prohibited from advertising, recruiting or enrolling students but may remain in operation to complete training of students enrolled on the effective date of the suspension. - } { + (5) A licensee whose license is suspended may not engage in any activities for which the license is required from the time the commission imposes the suspension until the time the suspension is removed. + } (6) A licensee whose license has been revoked is not authorized to continue in operation on and after the effective date of the revocation. SECTION 21. 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 22. 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 23. ORS 345.330 is amended to read: 345.330. (1) The Superintendent of Public Instruction shall appoint a representative advisory committee consisting of 11 members who shall serve for terms of three years ending June 30. Of the membership of the committee: (a) Seven members shall be persons affiliated with career schools as owners, directors, administrators, instructors or representatives, but not more than one member shall represent an out-of-state career school. (b) Four members shall be persons who are not eligible under paragraph (a) of this subsection. At least one of these members shall have graduated from a career school. (2) The advisory committee appointed under subsection (1) of this section shall: (a) Make recommendations to the superintendent and State Board of Education concerning the need for professional and technical instructional and training facilities, the types of instruction and training needed and by whom these can best be provided. (b) Recommend standards for career schools as provided in ORS 345.325 which are consistent with the purposes of such schools. (c) Investigate and present findings to the State Board of Education on the administration and operation of laws relating to career schools. However, the investigations and findings of the advisory committee do not affect the authority of the superintendent to issue, deny, suspend or revoke the license of any career school. (d) Consult with the superintendent in determining the refund schedule under ORS 345.115. (e) Make recommendations to the superintendent concerning { - rule development - } { + rules to be adopted by the State Board of Education + } for ORS 345.010 to 345.450 and 345.992 to 345.997. (3) Members of the advisory committee are entitled to compensation and expenses as provided in ORS 292.495 from funds appropriated to the Department of Education for purposes of administering ORS 345.010 to 345.450. SECTION 24. ORS 345.330, as amended by section 34, chapter 104, Oregon Laws 2012, is amended to read: 345.330. (1) The Higher Education Coordinating Commission shall appoint a representative advisory committee consisting of 11 members who shall serve for terms of three years ending June 30. Of the membership of the committee: (a) Seven members shall be persons affiliated with career schools as owners, directors, administrators, instructors or representatives, but not more than one member shall represent an out-of-state career school. (b) Four members shall be persons who are not eligible under paragraph (a) of this subsection. At least one of these members shall have graduated from a career school. (2) The advisory committee appointed under subsection (1) of this section shall: (a) Make recommendations to the commission concerning the need for professional and technical instructional and training facilities, the types of instruction and training needed and by whom these can best be provided. (b) Recommend standards for career schools as provided in ORS 345.325 which are consistent with the purposes of such schools. (c) Investigate and present findings to the commission on the administration and operation of laws relating to career schools. However, the investigations and findings of the advisory committee do not affect the authority of the commission to issue, deny, suspend or revoke the license of any career school. (d) Consult with the commission in determining the refund schedule under ORS 345.115. (e) Make recommendations to the commission concerning { - rule development - } { + rules to be adopted by the commission + } for ORS 345.010 to 345.450 and 345.992 to 345.997. (3) Members of the advisory committee are entitled to compensation and expenses as provided in ORS 292.495 from funds appropriated to the commission for purposes of administering ORS 345.010 to 345.450. SECTION 25. ORS 345.400 is amended to read: 345.400. In addition to the other requirements of ORS 345.010 to 345.450, the rules adopted by the State Board of Education to regulate schools teaching hair design, barbering, esthetics or nail technology: (1) May include rules the board considers necessary to protect the economic or physical health and safety of the public and of the students attending the school including compliance with ORS 345.110. (2) Shall include rules that set standards for teachers teaching in schools licensed to teach hair design, barbering, esthetics or nail technology pursuant to ORS 345.010 to 345.450. (3) Shall require the schools to teach, and require for graduation from the school, courses that meet the following minimum standards: (a)(A) A minimum hourly training requirement for: (i) Hair design, 1,450 hours; (ii) Barbering, 1,100 hours; (iii) Esthetics, 250 hours; and (iv) Nail technology, 350 hours; and (B) In addition to the programs listed in this subsection, a student is also required to successfully complete the following requirements once: (i) Safety and sanitation, 150 hours; and (ii) Career development, 100 hours. (b) A student { - competency-based - } { + proficiency-based + } training requirement for hair design, barbering, esthetics or nail technology, if the school has developed written requirements for graduation that are approved by the Superintendent of Public Instruction. SECTION 26. ORS 345.400, as amended by section 36, chapter 104, Oregon Laws 2012, is amended to read: 345.400. In addition to the other requirements of ORS 345.010 to 345.450, the rules adopted by the Higher Education Coordinating Commission to regulate schools teaching hair design, barbering, esthetics or nail technology: (1) May include rules the commission considers necessary to protect the economic or physical health and safety of the public and of the students attending the school including compliance with ORS 345.110. (2) Shall include rules that set standards for teachers teaching in schools licensed to teach hair design, barbering, esthetics or nail technology pursuant to ORS 345.010 to 345.450. (3) Shall require the schools to teach, and require for graduation from the school, courses that meet the following minimum standards: (a)(A) A minimum hourly training requirement for: (i) Hair design, 1,450 hours; (ii) Barbering, 1,100 hours; (iii) Esthetics, 250 hours; and (iv) Nail technology, 350 hours; and (B) In addition to the programs listed in this subsection, a student is also required to successfully complete the following requirements once: (i) Safety and sanitation, 150 hours; and (ii) Career development, 100 hours. (b) A student { - competency-based - } { + proficiency-based + } training requirement for hair design, barbering, esthetics or nail technology, if the school has developed written requirements for graduation that are approved by the commission. SECTION 27. { + 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. + } ----------