Print Friendly

SENATE BILL NO. 1408

View Bill Status

View Bill Text

View Amendment

View Engrossed Bill (Original Bill with Amendment(s) Incorporated)

View Statement of Purpose / Fiscal Impact

---

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status

---

S1408aa........................................................by EDUCATION
PROPRIETARY SCHOOLS - Repeals, adds to and amends existing law to revise
requirements for proprietary school registration; to provide for
registration of degree granting proprietary schools; to provide
requirements for the certificate of identification; to revise requirements
for and conditions for recovery from the Student Tuition Recovery Account;
and to revise assessment mechanisms for the Student Tuition Recovery
Account.

02/08    Senate intro - 1st rdg - to printing
02/11    Rpt prt - to Educ
03/24    Rpt out - to 14th Ord
03/26    Rpt out amen - to engros
03/27    Rpt engros - 1st rdg - to 2nd rdg as amen
03/28    2nd rdg - to 3rd rdg as amen
03/31    3rd rdg as amen - PASSED - 30-0-5
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Fulcher, Gannon(Gannon), Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Lodge,
      Malepeai(Sagness), McGee, McKague, Richardson,  Schroeder, Siddoway,
      Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Davis, Langhorst, Little, McKenzie, Pearce
    Floor Sponsor - Goedde
    Title apvd - to House
04/01    House intro - 1st rdg - to Educ

Bill Text

                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                       IN THE SENATE

                                    SENATE BILL NO. 1408

                                   BY EDUCATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO REGULATION OF PROPRIETARY SCHOOLS; AMENDING SECTION 33-107,  IDAHO
  3        CODE, TO REVISE GENERAL POWERS AND DUTIES OF THE STATE BOARD OF EDUCATION;
  4        AMENDING SECTION 33-2401, IDAHO CODE, TO REVISE DEFINITIONS; AMENDING SEC-
  5        TION  33-2402,  IDAHO  CODE,  TO REVISE REGISTRATION REQUIREMENTS OF POST-
  6        SECONDARY EDUCATIONAL INSTITUTIONS; AMENDING CHAPTER 24, TITLE  33,  IDAHO
  7        CODE, BY THE ADDITION OF A NEW SECTION 33-2403, IDAHO CODE, TO PROVIDE FOR
  8        REGISTRATION  OF  DEGREE  GRANTING  PROPRIETARY  SCHOOLS; AMENDING SECTION
  9        33-2403, IDAHO CODE, TO REDESIGNATE THE SECTION AND TO REVISE REGISTRATION
 10        REQUIREMENTS OF PROPRIETARY SCHOOLS; AMENDING SECTION 33-2404, IDAHO CODE,
 11        TO REDESIGNATE THE SECTION, TO PROVIDE FOR AN AGENT'S CERTIFICATE OF IDEN-
 12        TIFICATION AND TO PROVIDE REQUIREMENTS FOR THE CERTIFICATE OF  IDENTIFICA-
 13        TION  AND  TO  MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 33-2405, IDAHO
 14        CODE, TO REDESIGNATE THE SECTION, TO DELETE REFERENCE TO THE WORD  PROPRI-
 15        ETARY  AND  TO  REVISE  THE PURCHASE STATEMENT; REPEALING SECTION 33-2406,
 16        IDAHO CODE, RELATING TO A SURETY BOND;  AMENDING  SECTION  33-2407,  IDAHO
 17        CODE, TO REVISE REQUIREMENTS FOR AND CONDITIONS FOR RECOVERY FROM THE STU-
 18        DENT  TUITION  RECOVERY ACCOUNT; AND AMENDING SECTION 33-2408, IDAHO CODE,
 19        TO REVISE ASSESSMENT MECHANISMS FOR THE STUDENT TUITION RECOVERY ACCOUNT.

 20    Be It Enacted by the Legislature of the State of Idaho:

 21        SECTION 1.  That Section 33-107, Idaho Code, be, and the  same  is  hereby
 22    amended to read as follows:

 23        33-107.  GENERAL  POWERS  AND  DUTIES  OF THE STATE BOARD. The state board
 24    shall have power to:
 25        (1)  Perform all duties prescribed for it by the school laws of the state;
 26        (2)  Acquire, hold and dispose of title, rights and interests in real  and
 27    personal property;
 28        (3)  Have general supervision, through its executive departments and offi-
 29    ces,  of  all  entities  of  public education supported in whole or in part by
 30    state funds;
 31        (4)  Delegate to its executive secretary, to its executive officer, or  to
 32    such  other administrators as the board may appoint, such powers as said offi-
 33    cers require to carry out the policies, orders and directives of the board;
 34        (5)  Through its executive departments and offices:
 35        (a)  Enforce the school laws of the state,
 36        (b)  Study the educational conditions and needs of the state and recommend
 37        to the legislature needed changes in existing laws or additional  legisla-
 38        tion;
 39        (6)  In  addition  to  the powers conferred by chapter 24, title 33, Idaho
 40    Code:
 41        (a)  Maintain  a  rRegister  of  postsecondary  educational   institutions
 42        approved to provide programs and a course or courses of study that lead to
 43        a  degree or which provide, offer and sell or confer degrees in accordance

                                       2

  1        with the procedures established in chapter 24, title 33, Idaho Code,
  2        (b)  Determine whether to accept academic credit at  public  postsecondary
  3        educational  institutions  in  Idaho.  Academic credit shall not be trans-
  4        ferred into any  Idaho  public  postsecondary  institution  from  a  post-
  5        secondary  educational institution or other entity registered as such that
  6        is not accredited by an organization recognized by the board,
  7        (c)  Register degree granting proprietary schools recognized to provide  a
  8        course  or courses of study that lead to a degree, or which provide, offer
  9        or confer degrees, in accordance with the procedures established in  chap-
 10        ter 24, title 33, Idaho Code,
 11        (d)  Maintain a rRegister of proprietary schools approved to that conduct,
 12        provide,  or offer or sell a course or courses of study in accordance with
 13        the procedures established in chapter 24, title 33, Idaho Code;
 14        (7)  Prescribe the courses and programs of study to be offered at the pub-
 15    lic institutions of higher education, after consultation with  the  presidents
 16    of the affected institutions;
 17        (8)  Approve  new courses and programs of study to be offered at community
 18    colleges organized pursuant to chapter 21, title  33,  Idaho  Code,  when  the
 19    courses  or  programs  of study are academic in nature and the credits derived
 20    therefrom are intended to be  transferable  to  other  state  institutions  of
 21    higher  education  for  credit  toward  a  baccalaureate  degree, and when the
 22    courses or programs of study have been authorized by the board of trustees  of
 23    the community college.

 24        SECTION  2.  That  Section 33-2401, Idaho Code, be, and the same is hereby
 25    amended to read as follows:

 26        33-2401.  DEFINITIONS. For the purposes of chapter  24,  title  33,  Idaho
 27    Code, the following words have the following meanings:
 28        (1)  "Accredited"  means  that a postsecondary educational institution has
 29    been recognized or approved as meeting the standards established by an accred-
 30    iting agency recognized by the board.
 31        (2)  "Agent" means any individual within the state of Idaho  who  solicits
 32    students for or on behalf of a proprietary school.
 33        (2)  "Agent's certificate of identification" means a nontransferable writ-
 34    ten document issued to an agent by the school that the agent represents.
 35        (3)  "Approved"  means  that  a postsecondary educational institution or a
 36    degree granting proprietary school  meets  the  standards  established  by  an
 37    accrediting agency recognized by the board.
 38        (3)  "Agent's  permit"  means a nontransferable written document issued to
 39    an agent by the board.
 40        (4)  "Board" means the state board of education.
 41        (5)  "Course" means instruction imparted in a series of lessons  or  class
 42    meetings to meet an educational objective.
 43        (6)  "Course or courses of study" means either a single course or a set of
 44    related  courses  for  which  a student enrolls, either for academic credit or
 45    otherwise.
 46        (7)  "Degree" means any academic,  vocational,  professional-technical  or
 47    honorary  title  or designation, mark, appellation, series of letters, numbers
 48    or words such as, but not limited to, "bachelor's,"  "master's,"  "doctorate,"
 49    or  "fellow," which signifies, purports, or is generally taken to signify sat-
 50    isfactory  completion  of  the  requirements  of  an   academic,   vocational,
 51    professional-technical,  educational  or  professional program of study beyond
 52    the secondary school level or for a recognized title conferred for meritorious
 53    recognition and an associate of arts or associate of science degree awarded by

                                       3

  1    a community college or  other  public  or  private  postsecondary  educational
  2    institution or other entity which may be used for any purpose whatsoever.
  3        (8)  "Degree  granting  proprietary school" means an individual, or educa-
  4    tional, business or other entity that operates  for  profit,  whether  legally
  5    constituted  or  otherwise,  and  which  maintains a presence within, or which
  6    operates or purports to operate from a location within, the state of Idaho and
  7    which provides a course or courses of study that lead to  a  degree  or  which
  8    provides, offers or confers degrees.
  9        (9)  "Postsecondary  educational institution" means an individual, or edu-
 10    cational, business or other entity, whether legally constituted or otherwise a
 11    public or other nonprofit entity, which maintains a presence within, or  which
 12    operates  or  purports to operate, from a location within, the state of Idaho,
 13    and which provides a course or courses or programs of study  that  lead  to  a
 14    degree, or which provides, offers or sells confers degrees.
 15        (910) "Proprietary  school"  means an individual, or educational, business
 16    or other entity that operates  for  profit,  whether  legally  constituted  or
 17    otherwise,  and  which  maintains a presence within, or which operates or pur-
 18    ports to operate, from a location within, the state of Idaho  and  which  con-
 19    ducts,  provides,  or  offers or sells a course or courses of study, but which
 20    does not provide, or offer or sell degrees.
 21        (11) "Recognized" means that a degree granting  proprietary  school  meets
 22    the  standards  established  by  an  accrediting agency which is recognized by
 23    either the United States department of education or  the  council  for  higher
 24    education accreditation.
 25        (12) "School"  means either a degree granting proprietary school or a pro-
 26    prietary school.

 27        SECTION 3.  That Section 33-2402, Idaho Code, be, and the same  is  hereby
 28    amended to read as follows:

 29        33-2402.  REGISTRATION  OF  POSTSECONDARY  EDUCATIONAL  INSTITUTIONS.  (1)
 30    Unless exempted as provided herein, each postsecondary educational institution
 31    which  maintains  a  presence  within the state of Idaho, or which operates or
 32    purports to operate from a location within the state of Idaho, shall  register
 33    annually  with,  be  approved by, and hold a valid certificate of registration
 34    issued by the board. A public postsecondary educational institution or  agency
 35    supported  primarily  by  taxation  from  either the state of Idaho or a local
 36    source in Idaho shall not be required to  register  under  this  section.  The
 37    board may exempt a nonprofit other postsecondary educational institutions from
 38    the  registration requirement in accordance with standards and criteria estab-
 39    lished in rule by the board. The board may permit a postsecondary  educational
 40    institution  required  to register under this section to instead register as a
 41    proprietary school under section 33-2403, Idaho Code, in accordance with stan-
 42    dards and criteria established in rule by the board.
 43        (2)  The board shall prescribe by rule  the  procedure  for  registration,
 44    which  shall include, but is not limited to, a description of each degree, and
 45    the course or program courses of study, for academic credit or otherwise, that
 46    a postsecondary educational institution intends to conduct, provide, offer. or
 47    sell. Such rule shall also prescribe the standards and criteria to be utilized
 48    by the board for recognition of approved accreditation organizations.
 49        (3)  The board may deny the registration of  a  postsecondary  educational
 50    institution  that  does not meet accreditation requirements or other standards
 51    and criteria established in rule by the board.  The  administrative  procedure
 52    act,  chapter 52, title 67, Idaho Code, shall apply to any denial of registra-
 53    tion under this section.

                                       4

  1        (4)  The board shall assess an  annual  registration  fee  on  each  post-
  2    secondary educational institution required to be registered under this section
  3    based  on  the  respective  degrees,  courses or programs that each such post-
  4    secondary educational institution intends to conduct, provide, offer or  sell,
  5    not to exceed one hundred dollars ($100) for each degree, course or program as
  6    established  in  rule by the board. Such annual registration fee shall be col-
  7    lected by the board and shall be dedicated for use by the board in  connection
  8    with its responsibilities under this chapter.

  9        SECTION  4.  That  Chapter  24,  Title 33, Idaho Code, be, and the same is
 10    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 11    ignated as Section 33-2403, Idaho Code, and to read as follows:

 12        33-2403.  REGISTRATION  OF DEGREE GRANTING PROPRIETARY SCHOOLS. (1) Unless
 13    exempted as provided herein, each degree  granting  proprietary  school  which
 14    maintains  a presence within the state of Idaho, or which operates or purports
 15    to operate from a location within the state of Idaho, shall register  annually
 16    with, be recognized by, and hold a valid certificate of registration issued by
 17    the  board or its designee. The board may permit a degree granting proprietary
 18    school required to register under this section to instead register as a  post-
 19    secondary educational institution under section 33-2402, Idaho Code, in accor-
 20    dance with the standards and criteria established in rule by the board.
 21        (2)  The  board  shall  prescribe by rule the same procedure for registra-
 22    tion, which shall include, but is  not  limited  to,  a  description  of  each
 23    degree,  and the course or courses of study, for academic credit or otherwise,
 24    that a degree granting proprietary school intends to offer.  Such  rule  shall
 25    also  prescribe the standards and criteria to be utilized by the board in rec-
 26    ognizing existing accreditation organizations.
 27        (3)  The board or its designee may  deny  the  registration  of  a  degree
 28    granting  proprietary  school that does not meet accreditation requirements or
 29    other standards and criteria established in rule by the board. The administra-
 30    tive procedure act, chapter 52, title 67,  Idaho  Code,  shall  apply  to  any
 31    denial of registration under this section.
 32        (4)  The  board  shall  assess  an  annual registration fee on each degree
 33    granting proprietary school required to be registered under this section based
 34    on the gross tuition generated by the school in the previous fiscal  year,  or
 35    the  anticipated tuition for a school that is just starting, as established in
 36    rule by the board. Such annual registration fee  shall  be  collected  by  the
 37    board or its designee and shall be designated for use by the board or its des-
 38    ignee in connection with its responsibilities under this chapter.

 39        SECTION  5.  That  Section 33-2403, Idaho Code, be, and the same is hereby
 40    amended to read as follows:

 41        33-24034.  REGISTRATION OF PROPRIETARY SCHOOLS.  (1)  Unless  exempted  as
 42    provided  in  subsection  (4)  of  this section, each proprietary school which
 43    maintains a presence within the state of Idaho, or which operates or  purports
 44    to operate from a location within the  state of Idaho, shall register annually
 45    with  and  hold a valid certificate of registration issued by the board or its
 46    designee.
 47        (2)  The board shall prescribe by rule  the  procedure  for  registration,
 48    which  shall  include, but is not limited to, a description of each the course
 49    or program, courses of study for academic credit or otherwise, that a  propri-
 50    etary school intends to conduct, provide, or offer. or sell.
 51        (3)  The board may deny the registration of a proprietary school that does

                                       5

  1    not  meet  the  standards  or  criteria  established in rule by the board. The
  2    administrative procedure act, chapter 52, title 67, Idaho Code, shall apply to
  3    any denial of registration under this section.
  4        (4)  The following individuals or entities are  specifically  exempt  from
  5    the registration provisions required by this section:
  6        (a)  An  individual  or  entity that offers instruction or training solely
  7        avocational or recreational in nature, as determined by the board.
  8        (b)  An individual or entity that offers courses recognized by  the  board
  9        which comply in whole or in part with the compulsory education law.
 10        (c)  An  individual  or  entity  that  offers a course or courses of study
 11        sponsored by an employer for the  training  and  preparation  of  its  own
 12        employees, and for which no tuition fee is charged to the student.
 13        (d)  An  individual  or  entity  which is otherwise regulated, licensed or
 14        registered with another state agency pursuant to  title  54,  Idaho  Code.
 15        These  agencies  shall provide a list of regulated, licensed or registered
 16        schools to the board annually.
 17        (e)  Aviation school or instructors approved by and under the  supervision
 18        of the federal aviation administration.
 19        (f)  An individual or entity that offers intensive review courses designed
 20        to prepare students for certified public accountancy tests, public accoun-
 21        tancy  tests,  law school aptitude tests, bar examinations or medical col-
 22        lege admissions tests, or similar instruction for test preparation.
 23        (g)  An individual or entity offering only workshops or  seminars  lasting
 24        no longer than three (3) calendar days.
 25        (h)  A  parochial  or  denominational institution providing instruction or
 26        training relating solely  to  religion  and  for  which  degrees  are  not
 27        granted.
 28        (i)  An  individual  or  entity that offers postsecondary credit through a
 29        consortium of public and private colleges and universities under the  aus-
 30        pices of the western governors.
 31        (5)  The board shall assess an annual registration fee on each proprietary
 32    school  required to be registered under this section. Such annual registration
 33    fee shall be composed of a fixed portion in an amount not to exceed  one  hun-
 34    dred  dollars ($100) for each proprietary school, and a variable portion based
 35    on the respective course or courses of study that each such proprietary school
 36    intends to conduct, provide, offer or sell, not to exceed one hundred  dollars
 37    ($100)  for  each course or courses of study based on the gross tuition gener-
 38    ated by the school in the previous year, or  the  anticipated  tuition  for  a
 39    school that is just starting, as established in rule by the board. Such annual
 40    registration fee shall be collected by the board or its designee, and shall be
 41    dedicated  for  use by the board in connection with its responsibilities under
 42    this chapter.

 43        SECTION 6.  That Section 33-2404, Idaho Code, be, and the same  is  hereby
 44    amended to read as follows:

 45        33-24045.  AGENT'S PERMIT CERTIFICATE OF IDENTIFICATION. (1) No individual
 46    may  act  as  an agent of a proprietary school required to be registered under
 47    the provisions of this chapter unless that individual holds  a  valid  agent's
 48    permit  certificate of identification issued by the board and maintains at all
 49    times a surety bond as described in section 33-2406, Idaho  Code  school  that
 50    the agent represents.
 51        The  application for an agent's permit shall be furnished by the board and
 52    shall include the following:
 53        (1)  A statement signed by the applicant that he or she has read the  pro-

                                       6

  1    visions of this chapter and the rules promulgated pursuant thereto.
  2        (2)  An  annual  fee for each permit not to exceed fifty dollars ($50.00).
  3    The board shall set by rule the amount of such annual agent's permit fee.
  4        (2)  All agent's permits shall be renewed annually upon reapplication  and
  5    proper  qualifications  Each  agent's  certificate  of identification shall be
  6    reissued annually by the school that the agent represents on the first day  of
  7    July.  If courses are solicited or sold by more than one (1) agent, a separate
  8    permit certificate of identification is required for each agent.
  9        (3)  The agent's permit certificate of identification shall consist  of  a
 10    pocket card and shall bear:
 11        (a)  Tthe name and address of the agent,;
 12        (b)  Tthe name and address of the proprietary school, and that they repre-
 13        sent;
 14        (c)  Aa  statement  that  the bearer is an authorized agent of the propri-
 15        etary school, and may solicit and sell courses students  for  the  propri-
 16        etary school.
 17        (4)  The agent shall surrender the agent's permit certificate of identifi-
 18    cation to the proprietary school upon termination of employment.
 19        (5)  An  agent  representing  more  than  one (1) proprietary school shall
 20    obtain a separate agent's permit certificate of identification for  each  pro-
 21    prietary school represented.
 22        (6)  No  individual shall be issued an agent's permit certificate of iden-
 23    tification prior to completing a criminal  history  check  that  includes  the
 24    state  bureau of identification, federal bureau of investigation and statewide
 25    sex offender registry and other guidelines established in rule by  the  board.
 26    No agent shall be issued an agent's certificate of identification if he or she
 27    has been previously found in any judicial or administrative proceeding to have
 28    violated this chapter.
 29        (7)  An  agent's  permit  certificate of identification shall be valid for
 30    the state's fiscal year in which it is issued, unless sooner revoked  or  sus-
 31    pended  by  the  board  for  fraud or misrepresentation in connection with the
 32    solicitation for the sale of any course of study, for  any  violation  of  the
 33    provisions  of  this chapter or rules promulgated pursuant to this chapter, or
 34    for the existence of any condition in respect to the agent or the  proprietary
 35    school  he  or  she  represents, which if in existence at the time the agent's
 36    permit was issued, would have been grounds for denial for the  agent's  permit
 37    school.
 38        (8)  The  agent  shall carry the agent's permit certificate of identifica-
 39    tion with him or her for identification purposes when engaged in the solicita-
 40    tion for the sale and the selling of courses of study of  students  away  from
 41    the  premises  of the proprietary school, and shall produce the agent's permit
 42    certificate of identification for inspection upon request.
 43        The administrative procedure act, chapter 52, title 67, Idaho Code,  shall
 44    apply to any denial of an agent's permit or proceeding to revoke or suspend an
 45    agent's permit of the board conducted pursuant to this section.
 46        (9)  The  issuance of an agent's permit certificate of identification pur-
 47    suant to this section shall not be interpreted as, and it  shall  be  unlawful
 48    for any individual holding any agent's permit certificate of identification to
 49    expressly  or  impliedly  represent by any means whatever whatsoever, that the
 50    board has made any evaluation, recognition, accreditation  or  endorsement  of
 51    any proprietary school or of any course of study being offered for sale by the
 52    agent  of  any  such proprietary school. Any oral or written statement, adver-
 53    tisement or solicitation by any proprietary school or agent  which  refers  to
 54    the board shall state:
 55        "(Name  of  school)  is  registered  with  the State Board of Education in

                                       7

  1        accordance with Section 33-2403 or 33-2404, Idaho Code."
  2        (10) It shall be unlawful for any agent holding an agent's permit certifi-
  3    cate of identification under the provisions of this section  to  expressly  or
  4    impliedly represent, by any means whatsoever, that the issuance of the agent's
  5    permit  certificate  of  identification  constitutes an assurance by the board
  6    that any course of study being offered for sale by the  agent  or  proprietary
  7    school will provide and require of the student a course of education or train-
  8    ing  necessary  to reach a professional, educational, or vocational objective,
  9    or will result in employment or personal earning for the student, or that  the
 10    board  has  made any evaluation, recognition, accreditation, or endorsement of
 11    any course of study being offered for sale by the agent or proprietary school.
 12        (11) No agent shall make any untrue or misleading statement or  engage  in
 13    sales,  collection,  credit,  or other practices of any type that are illegal,
 14    false, deceptive, misleading or unfair.
 15        (12) The board school shall maintain records for five (5)  years  of  each
 16    application  for  an  agent's permit, each bond certificate of identification,
 17    and each issuance,  denial,  termination,  suspension  and  revocation  of  an
 18    agent's permit certificate of identification.
 19        (13) The  school  shall provide as part of the annual registration process
 20    the names and results of the criminal history check for each agent to whom  it
 21    has issued a certificate of identification. The criminal history check will be
 22    valid for five (5) years.
 23        (14) The  board  or  a  student  may bring an action pursuant to the Idaho
 24    rules of civil procedure for an agent's violation of the  provisions  of  this
 25    chapter or any rule promulgated pursuant to this chapter, or any fraud or mis-
 26    representation.  The  court  shall  determine  which  party is the "prevailing
 27    party" and the prevailing party shall be entitled to the recovery of  damages,
 28    reasonable attorney's fees and costs both at trial and on appeal.
 29        (15) Additionally,  aAny agent who violates the provisions of this section
 30    is also guilty of a misdemeanor punishable by imprisonment in the county  jail
 31    not exceeding six (6) months, or by a fine not exceeding five thousand dollars
 32    ($5,000), or both.

 33        SECTION  7.  That  Section 33-2405, Idaho Code, be, and the same is hereby
 34    amended to read as follows:

 35        33-24056.  PURCHASE STATEMENT. At the time of  depositing  any  moneys  to
 36    purchase  the  product of any proprietary school, the proprietary school shall
 37    require the student to execute the following statement on an appropriate  form
 38    which  shall be maintained on record by the proprietary school in the individ-
 39    ual student's file:
 40        "I understand that (Name of proprietary school)  is  registered  with  the
 41        State  Board  of  Education in accordance with Section 33-2403 or 33-2404,
 42        Idaho Code. I also understand that the State Board of  Education  has  not
 43        accredited  or endorsed any course of study being offered by (Name of pro-
 44        prietary school), and that these courses will  may  not  be  accepted  for
 45        transfer into any Idaho public postsecondary institution."

 46        SECTION  8.  That  Section 33-2406, Idaho Code, be, and the same is hereby
 47    repealed.

 48        SECTION 9.  That Section 33-2407, Idaho Code, be, and the same  is  hereby
 49    amended to read as follows:

 50        33-2407.  STUDENT TUITION RECOVERY ACCOUNT -- CONDITIONS FOR RECOVERY. (1)

                                       8

  1    There  is  hereby  created  in the state treasury the student tuition recovery
  2    account to be administered by the board or its designee  for  the  purpose  of
  3    relieving  or mitigating pecuniary losses suffered by any student of a propri-
  4    etary school registered under the provisions of this  chapter  and  who  meets
  5    either of the following conditions:
  6        (a)  The  student  was  enrolled  in  a  proprietary  school prior to that
  7        school's closure, had prepaid tuition, and suffered loss as a result of:
  8             (i)   The closure of the proprietary school; or
  9             (ii)  The proprietary school's breach or anticipatory breach  of  the
 10             agreement  for the course or courses of study used for the indemnifi-
 11             cation of any student for any loss suffered as a result of the occur-
 12             rence, during the period coverage, of any fraud or  misrepresentation
 13             used  in  connection with the solicitation for enrollment in a course
 14             of study and, if the student was enrolled in a school prior  to  that
 15             school's closure, had prepaid tuition and suffered a loss as a result
 16             of:
 17                  1.  The closure of the school; or
 18                  2.  The  school's breach or anticipatory breach of the agreement
 19                  for the course or courses of study.
 20        For the purpose of this section, "closure" includes closure of a branch or
 21    satellite campus, the termination of either the  correspondence  or  residence
 22    portion  of  a  home  study or correspondence course, and the termination of a
 23    course of study for some or all of the students enrolled in the course  before
 24    the  time  the students have satisfactorily completed the program, or before a
 25    student who has been continuously enrolled in a course of study had been  per-
 26    mitted  to complete all the educational services and classes that comprise the
 27    course.
 28        (b)  The student obtained a judgment against the  proprietary  school  for
 29        any  violation of the provisions of this chapter or rules promulgated pur-
 30        suant to this chapter, and the student certifies that the judgment  cannot
 31        be collected after diligent collection efforts.
 32        (2)  Payments  from  the  account to any student shall be subject to rules
 33    and conditions as the board shall prescribe.:
 34        (a)  The proprietary school shall provide to the board or its designee  at
 35        the  time  of  the proprietary school's closure the names and addresses of
 36        persons who were students of the proprietary school within sixty (60) days
 37        prior to its closure, and shall notify these students within  thirty  (30)
 38        days  prior to the proprietary school's closure, of their rights under the
 39        student tuition recovery account and how to apply for payment. Failure  to
 40        do so shall result in a civil penalty not exceeding one  thousand  dollars
 41        ($1,000)  which  may be assessed by the state board and shall be deposited
 42        in the general fund.
 43        (b)  If the proprietary school fails to comply with the provisions of this
 44        section, the board or its designee  shall attempt to obtain the names  and
 45        addresses of these students and shall notify them, within ninety (90) days
 46        of  the  proprietary  school's  closure, of their rights under the student
 47        tuition recovery account and how to apply for payment. The  board  or  its
 48        designee  may require the proprietary school to reimburse the board or its
 49        designee for all reasonable costs and expenses incurred in notifying  stu-
 50        dents.
 51        (c)  The  board  or  its  designee shall develop a form fully explaining a
 52        student's rights, which shall be used by the  proprietary  school  or  the
 53        board  or  its  designee  to  comply with the notice requirement. The form
 54        shall include or be accompanied by a claim application form and an  expla-
 55        nation of how to complete the application.

                                       9

  1        (d)  Students filing for payment from the student tuition recovery account
  2        as  a  result of the closure of a proprietary school must submit the claim
  3        within one (1) year from the proprietary school's or  board's  service  of
  4        notice  on  the student or within two (2) years of the closure of the pro-
  5        prietary school, whichever is earlier.
  6        (3)  Students entitled to payment shall file with the board or its  desig-
  7    nee  a  verified application including, but not limited to each of the follow-
  8    ing:
  9        (a)  The student's name, address, telephone  number  and  social  security
 10        number.
 11        (b)  If  any  portion of the tuition was paid from the proceeds of a loan,
 12        the name of the lender and any state or federal agency that guaranteed the
 13        loan.
 14        (c)  The amount of the prepaid tuition.
 15        (d)  The dates the student started and ceased  attending  the  proprietary
 16        school.
 17        (e)  A description of the reasons the student ceased attending the propri-
 18        etary school.
 19        (f)  If  the  student ceased attending because of a breach or anticipatory
 20        breach, a statement describing in detail the nature of the  economic  loss
 21        incurred.
 22        (4)  Students  entitled to payment based on a judgment shall file with the
 23    board or its designee a verified application indicating  the  student's  name,
 24    address,  telephone number and student identification, the amount of the judg-
 25    ment obtained against the proprietary school, a statement  that  the  judgment
 26    cannot be collected, and a description of the efforts attempted to enforce the
 27    judgment.  The  application  shall  be  accompanied by a certified copy of the
 28    judgment and any other documents indicating  the  student's  efforts  made  to
 29    enforce  the  judgment.  The  application shall be filed with the board or its
 30    designee within two (2) years after the date upon which  the  judgment  became
 31    final.
 32        (5)  If  the  board or its designee pays the claim, the amount of the pay-
 33    ment shall be the total amount of the student's economic  loss,  although  the
 34    amount  of  the  payment  shall in no event exceed the amount of the student's
 35    tuition and cost of equipment and materials related to  the  course  of  study
 36    plus  interest  on  all student loans used to pay tuition, equipment and mate-
 37    rials. Upon payment of the claim, the board or its designee  shall  be  subro-
 38    gated  to  all  of  the student's rights against the proprietary school to the
 39    extent of the amount of the payment. If the board  or  its  designee  receives
 40    several  claims  from students, the payment of which cannot be totally covered
 41    by the student tuition recovery account, the claims shall receive a  pro  rata
 42    share of the account.
 43        (6)  If  the board or its designee denies a claim, the board or its desig-
 44    nee shall notify the student of the denial  and  of  the  student's  right  to
 45    request  a hearing within thirty (30) days. The hearing shall be held pursuant
 46    to the administrative procedure act, chapter 52, title 67, Idaho  Code.  If  a
 47    hearing  is  not  requested  the  board's  or its designee's decision shall be
 48    final.
 49        (7)  It is the intent of the legislature that, when a student is  enrolled
 50    in  a  proprietary school that closes prior to the completion of the student's
 51    program, the student shall have the option for a teach-out at another  propri-
 52    etary  school  with  a  comparable  course of study. The board or its designee
 53    shall seek to promote teach-out opportunities whenever possible, with the stu-
 54    dent to be informed by the board or its designee that he or she has the option
 55    of either payment from the account or a teach-out which shall be  funded  from

                                       10

  1    the account.
  2        (8)  No  liability  accrues to the state of Idaho from claims made against
  3    the student tuition recovery account.

  4        SECTION 10.  That Section 33-2408, Idaho Code, be, and the same is  hereby
  5    amended to read as follows:

  6        33-2408.  ASSESSMENT  FOR  STUDENT  TUITION RECOVERY ACCOUNT. The board or
  7    its designee shall assess each registered proprietary  school  which  collects
  8    any  moneys  in advance of rendering services, an amount equal to one-tenth of
  9    one percent (.1%) of the total course cost  for  each  student  enrolled.  The
 10    assessment per student shall not be less than one dollar ($1.00), and not more
 11    than four dollars ($4.00). In addition, for each student who prepays a propri-
 12    etary  school an amount in excess of four thousand dollars ($4,000), the board
 13    shall assess the proprietary school one-half of one percent (.5%) of the  pre-
 14    paid amount which exceeds four thousand dollars ($4,000). The board shall pro-
 15    mulgate  rules  regarding collection and administration of the student tuition
 16    account.
 17        At any time that the balance  is  in  excess  of  fifty  thousand  dollars
 18    ($50,000), the board shall suspend collection, except as provided in the event
 19    of  a  newly  registered  proprietary school or the transfer of ownership of a
 20    proprietary school as provided in this section, until such time as the balance
 21    is again below fifty thousand dollars ($50,000).
 22        Newly registered proprietary schools shall, regardless of the  balance  in
 23    the  account,  contribute the assessment set forth in this section for two (2)
 24    consecutive years.
 25        If fifty-one percent (51%) or more of the ownership interest in a  propri-
 26    etary school is conveyed through sale or other means into different ownership,
 27    the  new owner shall commence contributions under the provisions applying to a
 28    new applicant.
 29        No more than ten percent (10%) per fiscal  year  shall  be  used  for  the
 30    administration  of  the tuition recovery program. The interest earned on money
 31    in the account shall be credited to the account.
 32        In the event of a closure of a proprietary  school  registered  under  the
 33    provisions of this chapter, any assessments which have been made against those
 34    proprietary  schools, but have not been paid into the account, shall be recov-
 35    ered to the extent feasible, or any payments from the student tuition recovery
 36    account made to students on behalf of any proprietary school may be  recovered
 37    from  that  proprietary  school  by appropriate action taken by the board. The
 38    moneys so deposited in the student tuition recovery account  shall  be  exempt
 39    from  execution and shall not be the subject of litigation or liability on the
 40    part of creditors of those proprietary schools or students established in rule
 41    by the board that utilizes a percentage of the gross tuition for the  previous
 42    year,  or anticipated tuition for a school in its first year of operation. The
 43    method of payment shall be in the form of a surety bond which is to be  issued
 44    by  an  insurer  duly  authorized to do business in this state in favor of the
 45    state of Idaho for the indemnification of any student for any loss suffered as
 46    a result of the occurrence, during the period of coverage, of closure  of  the
 47    school or any fraud or misrepresentation used in connection with the solicita-
 48    tion  for  enrollment  in a course of study. The term of the bond shall extend
 49    over the period of registration with the board or its designee. The bond shall
 50    be supplied by the school. The bond shall provide for liability in the  amount
 51    established in rule by the board to fund the student tuition recovery account.
 52        The  board or its designee may submit a demand upon the surety on the bond
 53    on behalf of a student or students when it is reasonably believed that a  loss

                                       11

  1    has  occurred  due  to closure of the school or any fraud or misrepresentation
  2    used in connection with the solicitation for enrollment in a course  of  study
  3    or as a result of any violation of the provisions of this chapter or the rules
  4    promulgated  pursuant to this chapter. Neither the principal nor the surety on
  5    the bond may terminate the coverage of the bond, except upon giving  one  hun-
  6    dred twenty (120) days' prior written notice to the board or its designee.

Amendment

                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                                     Moved by    Goedde

                                                     Seconded by Jorgenson


                                       IN THE SENATE
                             SENATE AMENDMENTS TO S.B. NO. 1408



  1                               AMENDMENTS TO SECTION 2
  2        On page 3 of the printed bill, delete line  11,  and  insert:  "public  or
  3    other  not  for profit entity, a regionally accredited institution or a degree
  4    granting proprietary school that is approved to register  as  a  postsecondary
  5    educational  institution, as provided in section 33-2403(1), Idaho Code, which
  6    maintains a presence within, or which"; following line 24, insert:
  7        "(12) "Regionally accredited institution"  means  a  postsecondary  educa-
  8    tional  institution  that has been accredited by any of the following regional
  9    accreditation organizations:
 10        (a)  Middle states association of schools and colleges  (MSA),  commission
 11        on higher education.
 12        (b)  New england association of schools and colleges, commission on insti-
 13        tutions of higher education (NEASC-CIHE).
 14        (c)  North  central association of colleges and schools, the higher learn-
 15        ing commission (NCA-HLC).
 16        (d)  Northwest commission on colleges and universities (NWCCU).
 17        (e)  Southern association of colleges and schools  (SACS),  commission  on
 18        colleges.
 19        (f)  Western  association  of schools and colleges, accrediting commission
 20        for senior colleges and universities (WASC-ACSU)."; and in line 25, delete
 21        "(12)" and insert: "(13)".

 22                                AMENDMENT TO SECTION 3
 23        On page 4, in line 1, following "fee" insert: "not to exceed five thousand
 24    dollars ($5,000)".

 25                                AMENDMENT TO SECTION 4
 26        On page 4, in line 32, following "fee" insert: "not to exceed  five  thou-
 27    sand dollars ($5,000)".

 28                                AMENDMENT TO SECTION 5
 29        On  page  5, in line 31, following "fee" insert: "not to exceed five thou-
 30    sand dollars ($5,000)".

 31                                AMENDMENT TO SECTION 6
 32        On page 6, delete lines 22 through 28, and insert:
 33        "(6)  No individual shall be issued an agent's permit Prior to issuing the
 34    agent a certificate of identification, the school shall  complete  a  criminal
 35    history check that includes the state bureau of identification, federal bureau
 36    of  investigation  and  statewide  sex  offender registry and other guidelines
 37    established in rule by the board for every agent having  direct  contact  with
 38    minors.  No  agent shall be issued an agent's certificate of identification if

                                       2

  1    he or she has been previously found in any judicial or administrative proceed-
  2    ing to have violated this chapter.".

  3                               AMENDMENT TO SECTION 10
  4        On page 10, in line  53,  delete  "is  reasonably  believed"  and  insert:
  5    "determines".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)

                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                       IN THE SENATE

                              SENATE BILL NO. 1408, As Amended

                                   BY EDUCATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO REGULATION OF PROPRIETARY SCHOOLS; AMENDING SECTION 33-107,  IDAHO
  3        CODE, TO REVISE GENERAL POWERS AND DUTIES OF THE STATE BOARD OF EDUCATION;
  4        AMENDING SECTION 33-2401, IDAHO CODE, TO REVISE DEFINITIONS; AMENDING SEC-
  5        TION  33-2402,  IDAHO  CODE,  TO REVISE REGISTRATION REQUIREMENTS OF POST-
  6        SECONDARY EDUCATIONAL INSTITUTIONS; AMENDING CHAPTER 24, TITLE  33,  IDAHO
  7        CODE, BY THE ADDITION OF A NEW SECTION 33-2403, IDAHO CODE, TO PROVIDE FOR
  8        REGISTRATION  OF  DEGREE  GRANTING  PROPRIETARY  SCHOOLS; AMENDING SECTION
  9        33-2403, IDAHO CODE, TO REDESIGNATE THE SECTION AND TO REVISE REGISTRATION
 10        REQUIREMENTS OF PROPRIETARY SCHOOLS; AMENDING SECTION 33-2404, IDAHO CODE,
 11        TO REDESIGNATE THE SECTION, TO PROVIDE FOR AN AGENT'S CERTIFICATE OF IDEN-
 12        TIFICATION AND TO PROVIDE REQUIREMENTS FOR THE CERTIFICATE OF  IDENTIFICA-
 13        TION  AND  TO  MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 33-2405, IDAHO
 14        CODE, TO REDESIGNATE THE SECTION, TO DELETE REFERENCE TO THE WORD  PROPRI-
 15        ETARY  AND  TO  REVISE  THE PURCHASE STATEMENT; REPEALING SECTION 33-2406,
 16        IDAHO CODE, RELATING TO A SURETY BOND;  AMENDING  SECTION  33-2407,  IDAHO
 17        CODE, TO REVISE REQUIREMENTS FOR AND CONDITIONS FOR RECOVERY FROM THE STU-
 18        DENT  TUITION  RECOVERY ACCOUNT; AND AMENDING SECTION 33-2408, IDAHO CODE,
 19        TO REVISE ASSESSMENT MECHANISMS FOR THE STUDENT TUITION RECOVERY ACCOUNT.

 20    Be It Enacted by the Legislature of the State of Idaho:

 21        SECTION 1.  That Section 33-107, Idaho Code, be, and the  same  is  hereby
 22    amended to read as follows:

 23        33-107.  GENERAL  POWERS  AND  DUTIES  OF THE STATE BOARD. The state board
 24    shall have power to:
 25        (1)  Perform all duties prescribed for it by the school laws of the state;
 26        (2)  Acquire, hold and dispose of title, rights and interests in real  and
 27    personal property;
 28        (3)  Have general supervision, through its executive departments and offi-
 29    ces,  of  all  entities  of  public education supported in whole or in part by
 30    state funds;
 31        (4)  Delegate to its executive secretary, to its executive officer, or  to
 32    such  other administrators as the board may appoint, such powers as said offi-
 33    cers require to carry out the policies, orders and directives of the board;
 34        (5)  Through its executive departments and offices:
 35        (a)  Enforce the school laws of the state,
 36        (b)  Study the educational conditions and needs of the state and recommend
 37        to the legislature needed changes in existing laws or additional  legisla-
 38        tion;
 39        (6)  In  addition  to  the powers conferred by chapter 24, title 33, Idaho
 40    Code:
 41        (a)  Maintain  a  rRegister  of  postsecondary  educational   institutions
 42        approved to provide programs and a course or courses of study that lead to
 43        a  degree or which provide, offer and sell or confer degrees in accordance

                                       2

  1        with the procedures established in chapter 24, title 33, Idaho Code,
  2        (b)  Determine whether to accept academic credit at  public  postsecondary
  3        educational  institutions  in  Idaho.  Academic credit shall not be trans-
  4        ferred into any  Idaho  public  postsecondary  institution  from  a  post-
  5        secondary  educational institution or other entity registered as such that
  6        is not accredited by an organization recognized by the board,
  7        (c)  Register degree granting proprietary schools recognized to provide  a
  8        course  or courses of study that lead to a degree, or which provide, offer
  9        or confer degrees, in accordance with the procedures established in  chap-
 10        ter 24, title 33, Idaho Code,
 11        (d)  Maintain a rRegister of proprietary schools approved to that conduct,
 12        provide,  or offer or sell a course or courses of study in accordance with
 13        the procedures established in chapter 24, title 33, Idaho Code;
 14        (7)  Prescribe the courses and programs of study to be offered at the pub-
 15    lic institutions of higher education, after consultation with  the  presidents
 16    of the affected institutions;
 17        (8)  Approve  new courses and programs of study to be offered at community
 18    colleges organized pursuant to chapter 21, title  33,  Idaho  Code,  when  the
 19    courses  or  programs  of study are academic in nature and the credits derived
 20    therefrom are intended to be  transferable  to  other  state  institutions  of
 21    higher  education  for  credit  toward  a  baccalaureate  degree, and when the
 22    courses or programs of study have been authorized by the board of trustees  of
 23    the community college.

 24        SECTION  2.  That  Section 33-2401, Idaho Code, be, and the same is hereby
 25    amended to read as follows:

 26        33-2401.  DEFINITIONS. For the purposes of chapter  24,  title  33,  Idaho
 27    Code, the following words have the following meanings:
 28        (1)  "Accredited"  means  that a postsecondary educational institution has
 29    been recognized or approved as meeting the standards established by an accred-
 30    iting agency recognized by the board.
 31        (2)  "Agent" means any individual within the state of Idaho  who  solicits
 32    students for or on behalf of a proprietary school.
 33        (2)  "Agent's certificate of identification" means a nontransferable writ-
 34    ten document issued to an agent by the school that the agent represents.
 35        (3)  "Approved"  means  that  a postsecondary educational institution or a
 36    degree granting proprietary school  meets  the  standards  established  by  an
 37    accrediting agency recognized by the board.
 38        (3)  "Agent's  permit"  means a nontransferable written document issued to
 39    an agent by the board.
 40        (4)  "Board" means the state board of education.
 41        (5)  "Course" means instruction imparted in a series of lessons  or  class
 42    meetings to meet an educational objective.
 43        (6)  "Course or courses of study" means either a single course or a set of
 44    related  courses  for  which  a student enrolls, either for academic credit or
 45    otherwise.
 46        (7)  "Degree" means any academic,  vocational,  professional-technical  or
 47    honorary  title  or designation, mark, appellation, series of letters, numbers
 48    or words such as, but not limited to, "bachelor's,"  "master's,"  "doctorate,"
 49    or  "fellow," which signifies, purports, or is generally taken to signify sat-
 50    isfactory  completion  of  the  requirements  of  an   academic,   vocational,
 51    professional-technical,  educational  or  professional program of study beyond
 52    the secondary school level or for a recognized title conferred for meritorious
 53    recognition and an associate of arts or associate of science degree awarded by

                                       3

  1    a community college or  other  public  or  private  postsecondary  educational
  2    institution or other entity which may be used for any purpose whatsoever.
  3        (8)  "Degree  granting  proprietary school" means an individual, or educa-
  4    tional, business or other entity that operates  for  profit,  whether  legally
  5    constituted  or  otherwise,  and  which  maintains a presence within, or which
  6    operates or purports to operate from a location within, the state of Idaho and
  7    which provides a course or courses of study that lead to  a  degree  or  which
  8    provides, offers or confers degrees.
  9        (9)  "Postsecondary  educational institution" means an individual, or edu-
 10    cational, business or other entity, whether legally constituted or otherwise a
 11    public or other not for profit entity, a regionally accredited institution  or
 12    a  degree  granting proprietary school that is approved to register as a post-
 13    secondary educational institution, as provided in  section  33-2403(1),  Idaho
 14    Code,  which  maintains  a  presence  within, or which operates or purports to
 15    operate, from a location within, the state of  Idaho,  and  which  provides  a
 16    course  or  courses  or programs of study that lead to a degree, or which pro-
 17    vides, offers or sells confers degrees.
 18        (910) "Proprietary school" means an individual, or  educational,  business
 19    or  other  entity  that  operates  for  profit, whether legally constituted or
 20    otherwise, and which maintains a presence within, or which  operates  or  pur-
 21    ports  to  operate,  from a location within, the state of Idaho and which con-
 22    ducts, provides, or offers or sells a course or courses of  study,  but  which
 23    does not provide, or offer or sell degrees.
 24        (11) "Recognized"  means  that  a degree granting proprietary school meets
 25    the standards established by an accrediting  agency  which  is  recognized  by
 26    either  the  United  States  department of education or the council for higher
 27    education accreditation.
 28        (12) "Regionally accredited institution" means a postsecondary educational
 29    institution that has been accredited by any of the following regional accredi-
 30    tation organizations:
 31        (a)  Middle states association of schools and colleges  (MSA),  commission
 32        on higher education.
 33        (b)  New england association of schools and colleges, commission on insti-
 34        tutions of higher education (NEASC-CIHE).
 35        (c)  North  central association of colleges and schools, the higher learn-
 36        ing commission (NCA-HLC).
 37        (d)  Northwest commission on colleges and universities (NWCCU).
 38        (e)  Southern association of colleges and schools  (SACS),  commission  on
 39        colleges.
 40        (f)  Western  association  of schools and colleges, accrediting commission
 41        for senior colleges and universities (WASC-ACSU).
 42        (13) "School" means either a degree granting proprietary school or a  pro-
 43    prietary school.

 44        SECTION  3.  That  Section 33-2402, Idaho Code, be, and the same is hereby
 45    amended to read as follows:

 46        33-2402.  REGISTRATION  OF  POSTSECONDARY  EDUCATIONAL  INSTITUTIONS.  (1)
 47    Unless exempted as provided herein, each postsecondary educational institution
 48    which maintains a presence within the state of Idaho,  or  which  operates  or
 49    purports  to operate from a location within the state of Idaho, shall register
 50    annually with, be approved by, and hold a valid  certificate  of  registration
 51    issued  by the board. A public postsecondary educational institution or agency
 52    supported primarily by taxation from either the state  of  Idaho  or  a  local
 53    source  in  Idaho  shall  not  be required to register under this section. The

                                       4

  1    board may exempt a nonprofit other postsecondary educational institutions from
  2    the registration requirement in accordance with standards and criteria  estab-
  3    lished  in rule by the board. The board may permit a postsecondary educational
  4    institution required to register under this section to instead register  as  a
  5    proprietary school under section 33-2403, Idaho Code, in accordance with stan-
  6    dards and criteria established in rule by the board.
  7        (2)  The  board  shall  prescribe  by rule the procedure for registration,
  8    which shall include, but is not limited to, a description of each degree,  and
  9    the course or program courses of study, for academic credit or otherwise, that
 10    a postsecondary educational institution intends to conduct, provide, offer. or
 11    sell. Such rule shall also prescribe the standards and criteria to be utilized
 12    by the board for recognition of approved accreditation organizations.
 13        (3)  The  board  may  deny the registration of a postsecondary educational
 14    institution that does not meet accreditation requirements or  other  standards
 15    and  criteria  established  in rule by the board. The administrative procedure
 16    act, chapter 52, title 67, Idaho Code, shall apply to any denial of  registra-
 17    tion under this section.
 18        (4)  The  board shall assess an annual registration fee not to exceed five
 19    thousand  dollars  ($5,000)  on  each  postsecondary  educational  institution
 20    required to be registered under this section based on the respective  degrees,
 21    courses  or  programs  that  each  such  postsecondary educational institution
 22    intends to conduct, provide, offer or sell, not to exceed one hundred  dollars
 23    ($100) for each degree, course or program as established in rule by the board.
 24    Such annual registration fee shall be collected by the board and shall be ded-
 25    icated for use by the board in connection with its responsibilities under this
 26    chapter.

 27        SECTION  4.  That  Chapter  24,  Title 33, Idaho Code, be, and the same is
 28    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 29    ignated as Section 33-2403, Idaho Code, and to read as follows:

 30        33-2403.  REGISTRATION  OF DEGREE GRANTING PROPRIETARY SCHOOLS. (1) Unless
 31    exempted as provided herein, each degree  granting  proprietary  school  which
 32    maintains  a presence within the state of Idaho, or which operates or purports
 33    to operate from a location within the state of Idaho, shall register  annually
 34    with, be recognized by, and hold a valid certificate of registration issued by
 35    the  board or its designee. The board may permit a degree granting proprietary
 36    school required to register under this section to instead register as a  post-
 37    secondary educational institution under section 33-2402, Idaho Code, in accor-
 38    dance with the standards and criteria established in rule by the board.
 39        (2)  The  board  shall  prescribe by rule the same procedure for registra-
 40    tion, which shall include, but is  not  limited  to,  a  description  of  each
 41    degree,  and the course or courses of study, for academic credit or otherwise,
 42    that a degree granting proprietary school intends to offer.  Such  rule  shall
 43    also  prescribe the standards and criteria to be utilized by the board in rec-
 44    ognizing existing accreditation organizations.
 45        (3)  The board or its designee may  deny  the  registration  of  a  degree
 46    granting  proprietary  school that does not meet accreditation requirements or
 47    other standards and criteria established in rule by the board. The administra-
 48    tive procedure act, chapter 52, title 67,  Idaho  Code,  shall  apply  to  any
 49    denial of registration under this section.
 50        (4)  The  board shall assess an annual registration fee not to exceed five
 51    thousand dollars ($5,000) on each degree granting proprietary school  required
 52    to  be  registered  under this section based on the gross tuition generated by
 53    the school in the previous fiscal year,  or  the  anticipated  tuition  for  a

                                       5

  1    school that is just starting, as established in rule by the board. Such annual
  2    registration  fee shall be collected by the board or its designee and shall be
  3    designated for use by the board or its designee in connection with its respon-
  4    sibilities under this chapter.

  5        SECTION 5.  That Section 33-2403, Idaho Code, be, and the same  is  hereby
  6    amended to read as follows:

  7        33-24034.  REGISTRATION  OF  PROPRIETARY  SCHOOLS.  (1) Unless exempted as
  8    provided in subsection (4) of this  section,  each  proprietary  school  which
  9    maintains  a presence within the state of Idaho, or which operates or purports
 10    to operate from a location within the  state of Idaho, shall register annually
 11    with and hold a valid certificate of registration issued by the board  or  its
 12    designee.
 13        (2)  The  board  shall  prescribe  by rule the procedure for registration,
 14    which shall include, but is not limited to, a description of each  the  course
 15    or  program, courses of study for academic credit or otherwise, that a propri-
 16    etary school intends to conduct, provide, or offer. or sell.
 17        (3)  The board may deny the registration of a proprietary school that does
 18    not meet the standards or criteria established  in  rule  by  the  board.  The
 19    administrative procedure act, chapter 52, title 67, Idaho Code, shall apply to
 20    any denial of registration under this section.
 21        (4)  The  following  individuals  or entities are specifically exempt from
 22    the registration provisions required by this section:
 23        (a)  An individual or entity that offers instruction  or  training  solely
 24        avocational or recreational in nature, as determined by the board.
 25        (b)  An  individual  or entity that offers courses recognized by the board
 26        which comply in whole or in part with the compulsory education law.
 27        (c)  An individual or entity that offers a  course  or  courses  of  study
 28        sponsored  by  an  employer  for  the  training and preparation of its own
 29        employees, and for which no tuition fee is charged to the student.
 30        (d)  An individual or entity which is  otherwise  regulated,  licensed  or
 31        registered  with  another  state  agency pursuant to title 54, Idaho Code.
 32        These agencies shall provide a list of regulated, licensed  or  registered
 33        schools to the board annually.
 34        (e)  Aviation  school or instructors approved by and under the supervision
 35        of the federal aviation administration.
 36        (f)  An individual or entity that offers intensive review courses designed
 37        to prepare students for certified public accountancy tests, public accoun-
 38        tancy tests, law school aptitude tests, bar examinations or  medical  col-
 39        lege admissions tests, or similar instruction for test preparation.
 40        (g)  An  individual  or entity offering only workshops or seminars lasting
 41        no longer than three (3) calendar days.
 42        (h)  A parochial or denominational institution  providing  instruction  or
 43        training  relating  solely  to  religion  and  for  which  degrees are not
 44        granted.
 45        (i)  An individual or entity that offers postsecondary  credit  through  a
 46        consortium  of public and private colleges and universities under the aus-
 47        pices of the western governors.
 48        (5)  The board shall assess an annual registration fee not to exceed  five
 49    thousand dollars ($5,000) on each proprietary school required to be registered
 50    under  this section. Such annual registration fee shall be composed of a fixed
 51    portion in an amount not to exceed one hundred dollars ($100) for each propri-
 52    etary school, and a variable portion based on the respective course or courses
 53    of study that each such proprietary school intends to conduct, provide,  offer

                                       6

  1    or  sell,  not to exceed one hundred dollars ($100) for each course or courses
  2    of study based on the gross tuition generated by the school  in  the  previous
  3    year, or the anticipated tuition for a school that is just starting, as estab-
  4    lished  in  rule by the board. Such annual registration fee shall be collected
  5    by the board or its designee, and shall be dedicated for use by the  board  in
  6    connection with its responsibilities under this chapter.

  7        SECTION  6.  That  Section 33-2404, Idaho Code, be, and the same is hereby
  8    amended to read as follows:

  9        33-24045.  AGENT'S PERMIT CERTIFICATE OF IDENTIFICATION. (1) No individual
 10    may act as an agent of a proprietary school required to  be  registered  under
 11    the  provisions  of  this chapter unless that individual holds a valid agent's
 12    permit certificate of identification issued by the board and maintains at  all
 13    times  a  surety  bond as described in section 33-2406, Idaho Code school that
 14    the agent represents.
 15        The application for an agent's permit shall be furnished by the board  and
 16    shall include the following:
 17        (1)  A  statement signed by the applicant that he or she has read the pro-
 18    visions of this chapter and the rules promulgated pursuant thereto.
 19        (2)  An annual fee for each permit not to exceed fifty  dollars  ($50.00).
 20    The board shall set by rule the amount of such annual agent's permit fee.
 21        (2)  All  agent's permits shall be renewed annually upon reapplication and
 22    proper qualifications Each agent's  certificate  of  identification  shall  be
 23    reissued  annually by the school that the agent represents on the first day of
 24    July. If courses are solicited or sold by more than one (1) agent, a  separate
 25    permit certificate of identification is required for each agent.
 26        (3)  The  agent's  permit certificate of identification shall consist of a
 27    pocket card and shall bear:
 28        (a)  Tthe name and address of the agent,;
 29        (b)  Tthe name and address of the proprietary school, and that they repre-
 30        sent;
 31        (c)  Aa statement that the bearer is an authorized agent  of  the  propri-
 32        etary  school,  and  may solicit and sell courses students for the propri-
 33        etary school.
 34        (4)  The agent shall surrender the agent's permit certificate of identifi-
 35    cation to the proprietary school upon termination of employment.
 36        (5)  An agent representing more than  one  (1)  proprietary  school  shall
 37    obtain  a  separate agent's permit certificate of identification for each pro-
 38    prietary school represented.
 39        (6)  No individual shall be issued an agent's permit Prior to issuing  the
 40    agent  a  certificate  of identification, the school shall complete a criminal
 41    history check that includes the state bureau of identification, federal bureau
 42    of investigation and statewide sex  offender  registry  and  other  guidelines
 43    established  in  rule  by the board for every agent having direct contact with
 44    minors. No agent shall be issued an agent's certificate of  identification  if
 45    he or she has been previously found in any judicial or administrative proceed-
 46    ing to have violated this chapter.
 47        (7)  An  agent's  permit  certificate of identification shall be valid for
 48    the state's fiscal year in which it is issued, unless sooner revoked  or  sus-
 49    pended  by  the  board  for  fraud or misrepresentation in connection with the
 50    solicitation for the sale of any course of study, for  any  violation  of  the
 51    provisions  of  this chapter or rules promulgated pursuant to this chapter, or
 52    for the existence of any condition in respect to the agent or the  proprietary
 53    school  he  or  she  represents, which if in existence at the time the agent's

                                       7

  1    permit was issued, would have been grounds for denial for the  agent's  permit
  2    school.
  3        (8)  The  agent  shall carry the agent's permit certificate of identifica-
  4    tion with him or her for identification purposes when engaged in the solicita-
  5    tion for the sale and the selling of courses of study of  students  away  from
  6    the  premises  of the proprietary school, and shall produce the agent's permit
  7    certificate of identification for inspection upon request.
  8        The administrative procedure act, chapter 52, title 67, Idaho Code,  shall
  9    apply to any denial of an agent's permit or proceeding to revoke or suspend an
 10    agent's permit of the board conducted pursuant to this section.
 11        (9)  The  issuance of an agent's permit certificate of identification pur-
 12    suant to this section shall not be interpreted as, and it  shall  be  unlawful
 13    for any individual holding any agent's permit certificate of identification to
 14    expressly  or  impliedly  represent by any means whatever whatsoever, that the
 15    board has made any evaluation, recognition, accreditation  or  endorsement  of
 16    any proprietary school or of any course of study being offered for sale by the
 17    agent  of  any  such proprietary school. Any oral or written statement, adver-
 18    tisement or solicitation by any proprietary school or agent  which  refers  to
 19    the board shall state:
 20        "(Name  of  school)  is  registered  with  the State Board of Education in
 21        accordance with Section 33-2403 or 33-2404, Idaho Code."
 22        (10) It shall be unlawful for any agent holding an agent's permit certifi-
 23    cate of identification under the provisions of this section  to  expressly  or
 24    impliedly represent, by any means whatsoever, that the issuance of the agent's
 25    permit  certificate  of  identification  constitutes an assurance by the board
 26    that any course of study being offered for sale by the  agent  or  proprietary
 27    school will provide and require of the student a course of education or train-
 28    ing  necessary  to reach a professional, educational, or vocational objective,
 29    or will result in employment or personal earning for the student, or that  the
 30    board  has  made any evaluation, recognition, accreditation, or endorsement of
 31    any course of study being offered for sale by the agent or proprietary school.
 32        (11) No agent shall make any untrue or misleading statement or  engage  in
 33    sales,  collection,  credit,  or other practices of any type that are illegal,
 34    false, deceptive, misleading or unfair.
 35        (12) The board school shall maintain records for five (5)  years  of  each
 36    application  for  an  agent's permit, each bond certificate of identification,
 37    and each issuance,  denial,  termination,  suspension  and  revocation  of  an
 38    agent's permit certificate of identification.
 39        (13) The  school  shall provide as part of the annual registration process
 40    the names and results of the criminal history check for each agent to whom  it
 41    has issued a certificate of identification. The criminal history check will be
 42    valid for five (5) years.
 43        (14) The  board  or  a  student  may bring an action pursuant to the Idaho
 44    rules of civil procedure for an agent's violation of the  provisions  of  this
 45    chapter or any rule promulgated pursuant to this chapter, or any fraud or mis-
 46    representation.  The  court  shall  determine  which  party is the "prevailing
 47    party" and the prevailing party shall be entitled to the recovery of  damages,
 48    reasonable attorney's fees and costs both at trial and on appeal.
 49        (15) Additionally,  aAny agent who violates the provisions of this section
 50    is also guilty of a misdemeanor punishable by imprisonment in the county  jail
 51    not exceeding six (6) months, or by a fine not exceeding five thousand dollars
 52    ($5,000), or both.

 53        SECTION  7.  That  Section 33-2405, Idaho Code, be, and the same is hereby
 54    amended to read as follows:

                                       8

  1        33-24056.  PURCHASE STATEMENT. At the time of  depositing  any  moneys  to
  2    purchase  the  product of any proprietary school, the proprietary school shall
  3    require the student to execute the following statement on an appropriate  form
  4    which  shall be maintained on record by the proprietary school in the individ-
  5    ual student's file:
  6        "I understand that (Name of proprietary school)  is  registered  with  the
  7        State  Board  of  Education in accordance with Section 33-2403 or 33-2404,
  8        Idaho Code. I also understand that the State Board of  Education  has  not
  9        accredited  or endorsed any course of study being offered by (Name of pro-
 10        prietary school), and that these courses will  may  not  be  accepted  for
 11        transfer into any Idaho public postsecondary institution."

 12        SECTION  8.  That  Section 33-2406, Idaho Code, be, and the same is hereby
 13    repealed.

 14        SECTION 9.  That Section 33-2407, Idaho Code, be, and the same  is  hereby
 15    amended to read as follows:

 16        33-2407.  STUDENT TUITION RECOVERY ACCOUNT -- CONDITIONS FOR RECOVERY. (1)
 17    There  is  hereby  created  in the state treasury the student tuition recovery
 18    account to be administered by the board or its designee  for  the  purpose  of
 19    relieving  or mitigating pecuniary losses suffered by any student of a propri-
 20    etary school registered under the provisions of this  chapter  and  who  meets
 21    either of the following conditions:
 22        (a)  The  student  was  enrolled  in  a  proprietary  school prior to that
 23        school's closure, had prepaid tuition, and suffered loss as a result of:
 24             (i)   The closure of the proprietary school; or
 25             (ii)  The proprietary school's breach or anticipatory breach  of  the
 26             agreement  for the course or courses of study used for the indemnifi-
 27             cation of any student for any loss suffered as a result of the occur-
 28             rence, during the period coverage, of any fraud or  misrepresentation
 29             used  in  connection with the solicitation for enrollment in a course
 30             of study and, if the student was enrolled in a school prior  to  that
 31             school's closure, had prepaid tuition and suffered a loss as a result
 32             of:
 33                  1.  The closure of the school; or
 34                  2.  The  school's breach or anticipatory breach of the agreement
 35                  for the course or courses of study.
 36        For the purpose of this section, "closure" includes closure of a branch or
 37    satellite campus, the termination of either the  correspondence  or  residence
 38    portion  of  a  home  study or correspondence course, and the termination of a
 39    course of study for some or all of the students enrolled in the course  before
 40    the  time  the students have satisfactorily completed the program, or before a
 41    student who has been continuously enrolled in a course of study had been  per-
 42    mitted  to complete all the educational services and classes that comprise the
 43    course.
 44        (b)  The student obtained a judgment against the  proprietary  school  for
 45        any  violation of the provisions of this chapter or rules promulgated pur-
 46        suant to this chapter, and the student certifies that the judgment  cannot
 47        be collected after diligent collection efforts.
 48        (2)  Payments  from  the  account to any student shall be subject to rules
 49    and conditions as the board shall prescribe.:
 50        (a)  The proprietary school shall provide to the board or its designee  at
 51        the  time  of  the proprietary school's closure the names and addresses of
 52        persons who were students of the proprietary school within sixty (60) days

                                       9

  1        prior to its closure, and shall notify these students within  thirty  (30)
  2        days  prior to the proprietary school's closure, of their rights under the
  3        student tuition recovery account and how to apply for payment. Failure  to
  4        do so shall result in a civil penalty not exceeding one  thousand  dollars
  5        ($1,000)  which  may be assessed by the state board and shall be deposited
  6        in the general fund.
  7        (b)  If the proprietary school fails to comply with the provisions of this
  8        section, the board or its designee  shall attempt to obtain the names  and
  9        addresses of these students and shall notify them, within ninety (90) days
 10        of  the  proprietary  school's  closure, of their rights under the student
 11        tuition recovery account and how to apply for payment. The  board  or  its
 12        designee  may require the proprietary school to reimburse the board or its
 13        designee for all reasonable costs and expenses incurred in notifying  stu-
 14        dents.
 15        (c)  The  board  or  its  designee shall develop a form fully explaining a
 16        student's rights, which shall be used by the  proprietary  school  or  the
 17        board  or  its  designee  to  comply with the notice requirement. The form
 18        shall include or be accompanied by a claim application form and an  expla-
 19        nation of how to complete the application.
 20        (d)  Students filing for payment from the student tuition recovery account
 21        as  a  result of the closure of a proprietary school must submit the claim
 22        within one (1) year from the proprietary school's or  board's  service  of
 23        notice  on  the student or within two (2) years of the closure of the pro-
 24        prietary school, whichever is earlier.
 25        (3)  Students entitled to payment shall file with the board or its  desig-
 26    nee  a  verified application including, but not limited to each of the follow-
 27    ing:
 28        (a)  The student's name, address, telephone  number  and  social  security
 29        number.
 30        (b)  If  any  portion of the tuition was paid from the proceeds of a loan,
 31        the name of the lender and any state or federal agency that guaranteed the
 32        loan.
 33        (c)  The amount of the prepaid tuition.
 34        (d)  The dates the student started and ceased  attending  the  proprietary
 35        school.
 36        (e)  A description of the reasons the student ceased attending the propri-
 37        etary school.
 38        (f)  If  the  student ceased attending because of a breach or anticipatory
 39        breach, a statement describing in detail the nature of the  economic  loss
 40        incurred.
 41        (4)  Students  entitled to payment based on a judgment shall file with the
 42    board or its designee a verified application indicating  the  student's  name,
 43    address,  telephone number and student identification, the amount of the judg-
 44    ment obtained against the proprietary school, a statement  that  the  judgment
 45    cannot be collected, and a description of the efforts attempted to enforce the
 46    judgment.  The  application  shall  be  accompanied by a certified copy of the
 47    judgment and any other documents indicating  the  student's  efforts  made  to
 48    enforce  the  judgment.  The  application shall be filed with the board or its
 49    designee within two (2) years after the date upon which  the  judgment  became
 50    final.
 51        (5)  If  the  board or its designee pays the claim, the amount of the pay-
 52    ment shall be the total amount of the student's economic  loss,  although  the
 53    amount  of  the  payment  shall in no event exceed the amount of the student's
 54    tuition and cost of equipment and materials related to  the  course  of  study
 55    plus  interest  on  all student loans used to pay tuition, equipment and mate-

                                       10

  1    rials. Upon payment of the claim, the board or its designee  shall  be  subro-
  2    gated  to  all  of  the student's rights against the proprietary school to the
  3    extent of the amount of the payment. If the board  or  its  designee  receives
  4    several  claims  from students, the payment of which cannot be totally covered
  5    by the student tuition recovery account, the claims shall receive a  pro  rata
  6    share of the account.
  7        (6)  If  the board or its designee denies a claim, the board or its desig-
  8    nee shall notify the student of the denial  and  of  the  student's  right  to
  9    request  a hearing within thirty (30) days. The hearing shall be held pursuant
 10    to the administrative procedure act, chapter 52, title 67, Idaho  Code.  If  a
 11    hearing  is  not  requested  the  board's  or its designee's decision shall be
 12    final.
 13        (7)  It is the intent of the legislature that, when a student is  enrolled
 14    in  a  proprietary school that closes prior to the completion of the student's
 15    program, the student shall have the option for a teach-out at another  propri-
 16    etary  school  with  a  comparable  course of study. The board or its designee
 17    shall seek to promote teach-out opportunities whenever possible, with the stu-
 18    dent to be informed by the board or its designee that he or she has the option
 19    of either payment from the account or a teach-out which shall be  funded  from
 20    the account.
 21        (8)  No  liability  accrues to the state of Idaho from claims made against
 22    the student tuition recovery account.

 23        SECTION 10.  That Section 33-2408, Idaho Code, be, and the same is  hereby
 24    amended to read as follows:

 25        33-2408.  ASSESSMENT  FOR  STUDENT  TUITION RECOVERY ACCOUNT. The board or
 26    its designee shall assess each registered proprietary  school  which  collects
 27    any  moneys  in advance of rendering services, an amount equal to one-tenth of
 28    one percent (.1%) of the total course cost  for  each  student  enrolled.  The
 29    assessment per student shall not be less than one dollar ($1.00), and not more
 30    than four dollars ($4.00). In addition, for each student who prepays a propri-
 31    etary  school an amount in excess of four thousand dollars ($4,000), the board
 32    shall assess the proprietary school one-half of one percent (.5%) of the  pre-
 33    paid amount which exceeds four thousand dollars ($4,000). The board shall pro-
 34    mulgate  rules  regarding collection and administration of the student tuition
 35    account.
 36        At any time that the balance  is  in  excess  of  fifty  thousand  dollars
 37    ($50,000), the board shall suspend collection, except as provided in the event
 38    of  a  newly  registered  proprietary school or the transfer of ownership of a
 39    proprietary school as provided in this section, until such time as the balance
 40    is again below fifty thousand dollars ($50,000).
 41        Newly registered proprietary schools shall, regardless of the  balance  in
 42    the  account,  contribute the assessment set forth in this section for two (2)
 43    consecutive years.
 44        If fifty-one percent (51%) or more of the ownership interest in a  propri-
 45    etary school is conveyed through sale or other means into different ownership,
 46    the  new owner shall commence contributions under the provisions applying to a
 47    new applicant.
 48        No more than ten percent (10%) per fiscal  year  shall  be  used  for  the
 49    administration  of  the tuition recovery program. The interest earned on money
 50    in the account shall be credited to the account.
 51        In the event of a closure of a proprietary  school  registered  under  the
 52    provisions of this chapter, any assessments which have been made against those
 53    proprietary  schools, but have not been paid into the account, shall be recov-

                                       11

  1    ered to the extent feasible, or any payments from the student tuition recovery
  2    account made to students on behalf of any proprietary school may be  recovered
  3    from  that  proprietary  school  by appropriate action taken by the board. The
  4    moneys so deposited in the student tuition recovery account  shall  be  exempt
  5    from  execution and shall not be the subject of litigation or liability on the
  6    part of creditors of those proprietary schools or students established in rule
  7    by the board that utilizes a percentage of the gross tuition for the  previous
  8    year,  or anticipated tuition for a school in its first year of operation. The
  9    method of payment shall be in the form of a surety bond which is to be  issued
 10    by  an  insurer  duly  authorized to do business in this state in favor of the
 11    state of Idaho for the indemnification of any student for any loss suffered as
 12    a result of the occurrence, during the period of coverage, of closure  of  the
 13    school or any fraud or misrepresentation used in connection with the solicita-
 14    tion  for  enrollment  in a course of study. The term of the bond shall extend
 15    over the period of registration with the board or its designee. The bond shall
 16    be supplied by the school. The bond shall provide for liability in the  amount
 17    established in rule by the board to fund the student tuition recovery account.
 18        The  board or its designee may submit a demand upon the surety on the bond
 19    on behalf of a student or students when it determines that a loss has occurred
 20    due to closure of the school or any fraud or misrepresentation used in connec-
 21    tion with the solicitation for enrollment in a course of study or as a  result
 22    of  any  violation  of the provisions of this chapter or the rules promulgated
 23    pursuant to this chapter. Neither the principal nor the surety on the bond may
 24    terminate the coverage of the bond, except  upon  giving  one  hundred  twenty
 25    (120) days' prior written notice to the board or its designee.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                            RS 17423C2


This legislation updates the requirements for post secondary
educational institutions and proprietary schools registration and
oversight.  It also provides for a different process for funding
a tuition recovery fund that would be used to protect the
consumer who uses the training provided by the proprietary
schools in Idaho.  It provides for personnel to follow-up and
provide the oversight for these processes, since currently there
is virtually no oversight or follow-up with the current process.


                           FISCAL NOTE

This legislation may effect the amount paid for registration by
post secondary educational institutions, degree granting
proprietary schools, and proprietary schools.  Administration of
this section of Idaho Code will require an estimated $154,100
from the state General Fund and 2.0 Full Time Employee (FTE)
positions.  Not amending this section of Idaho Code will not
reduce the cost estimated for administration.

               



Contact
Name:      Mike Rush
Agency:    Prof Tech Education 
Phone:     334-3216


STATEMENT OF PURPOSE/FISCAL NOTE                        S 1408