DAR File No. 38880

Commerce, Consumer Protection

Rule R152-34

Postsecondary Proprietary School Act Rules

Notice of Proposed Rule

(Amendment)

DAR File No.: 38880
Filed: 09/24/2014 12:57:11 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to delete Section R152-34-7a, Rules Relating to Accredited Institutions Under Section 13-34-107.5. This section outlines the procedure by which an accredited institution may apply for a certificate of exemption to the registration requirement of Title 13, Chapter 34. In the 2014 General Legislative Session, Title 13, Chapter 34a, was enacted under H.B. 405. The new statute revises the process by which accredited institutions can obtain a certificate of postsecondary state authorization. Therefore, Section R152-34-7a is no longer needed.

Summary of the rule or change:

Section R152-34-7a is deleted. Through a separate filing, this section is replaced with a new rule, R152-34a. This new rule corresponds to Title 13, Chapter 34a, which was enacted under H.B. 405 (2014). In addition, technical corrections are made in Subsections R152-34-5(4) and R152-34-10(2)(i).

State statutory or constitutional authorization for this rule:

• Subsection 13-2-5(1)

Anticipated cost or savings to:

the state budget:

This filing makes two technical corrections and deletes language that is no longer necessary due to recent legislative action. No fiscal impact to the state budget is anticipated.

local governments:

Local governments are not required to comply with or enforce the rules governing postsecondary proprietary schools. No fiscal impact to local government is anticipated.

small businesses:

This filing is in response to recent legislative action. The new statute revises the process by which accredited institutions can obtain a certificate of postsecondary state authorization. Any fiscal impact to small businesses operating as accredited institutions has been considered by the Legislature. It is not anticipated that this rule filing will create any additional fiscal impact to small businesses.

persons other than small businesses, businesses, or local governmental entities:

This filing is in response to recent legislative action. The new statute revises the process by which accredited institutions can obtain a certificate of postsecondary state authorization. Any fiscal impact to affected persons operating as accredited institutions has been considered by the Legislature. It is not anticipated that this rule filing will create any additional fiscal impact to affected persons.

Compliance costs for affected persons:

This filing is in response to recent legislative action. The new statute revises the process by which accredited institutions can obtain a certificate of postsecondary state authorization. Any compliance costs for affected persons operating as accredited institutions have been considered by the Legislature. It is not anticipated that this rule filing will create any additional compliance costs for affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule filing makes two technical corrections and deletes a subsection that has become moot due to the enactment of Title 13, Chapter 34a (2014), which governs accredited institutions operating in Utah. No fiscal impact to businesses is anticipated beyond that considered by the Legislature in determining to take the action to which this filing responds.

Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Jennie Jonsson at the above address, by phone at 801-530-6706, by FAX at 801-526-4387, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/14/2014

This rule may become effective on:

11/21/2014

Authorized by:

Daniel O'Bannon, Director

R152. Commerce, Consumer Protection.

R152-34. Postsecondary Proprietary School Act Rules.

R152-34-5. Rules Relating to Institutions Exempt Under Section 13-34-105.

(1) Institutions that provide nonprofessional review courses, such as law enforcement and civil service, are not exempt, unless they are considered as workshops or seminars within the meaning of Section 13-34-105(1)(h).

(2) In order for the church or religious denomination to be "bona fide" such that the institution is exempt from registration, the institution may not be the church or religious denomination's primary purpose, function or asset. The institution shall submit a sworn statement in a form specified by the Division attesting to the religious nature of the education offered.

(3) Any institution which claims an accreditation exemption must furnish acceptable documentation to the Division upon request.

(4) To qualify for exemption under Section 13-34-105 (1)(f):

(a) the training or instruction shall not be the primary activity of the organization, association, society, labor union, or franchise system or;

(b) the organization, association, society, labor union, or franchise system shall meet the following requirements:

(i) the organization, association, society, labor union, or franchise system does not recruit students;

(ii) the organization, association, society, labor union, or franchise system provides courses of instruction only to students who are currently employed;

(iii) the cost of the course of instruction is paid for by the employer of the student, not the student; and

(iv) enrollment in each individual course of instruction is limited to those who are bona fide employees of the employer.

(5) To qualify for exemption under Section 13-34-105(1)(c):

(a) the profession for which the review program is offered must be recognized by a state or national licensing or certifying body;

(b) the students enrolled in the review program must previously complete education and/or training in the occupation or field required to be obtained by the certifying body; and

(c) the professional review program must provide only review and preparation for exams or other certifying tests that are required to be passed by the certifying body.

(6) The Division shall determine an institution's status in accordance with the categories contained in this section.

(7) An exempt institution shall notify the Division within thirty (30) days of a material change in circumstances which may affect its exempt status as provided in this section and shall follow the procedure outlined in Section 13-34-107.

(8) An exempted institution which voluntarily applies for a certificate by filing a registration statement shall comply with all rules as though such institution were nonexempt.

 

[R152-34-7a. Rules Relating to Accredited Institutions Under Section 13-34-107.5.

(1) To apply for an exemption certificate, an accredited institution shall submit a completed registration statement application as outlined in Section 13-34-107.5(3) and a copy of such portions of its current accreditation, financial statements and self-evaluation report as specified by the Division.

(2) In accordance with U.C.A. Section 13-34-107.5(7)(a), institutions applying for an exemption certificate shall pay fees established by the Division pursuant to U.C.A. Section 63J-1-504.

(3) An exemption certificate is valid for a two (2) year period; the Division will conduct a review of the registration in alternating years. The Division will request and review updates on the institutions accreditation status.

 

]R152-34-10. Rules Relating to Suspension, Termination or Refusal to Register under Section 13-34-111.

(1) The Division may perform on-site evaluations to verify information submitted by an institution or an agent, or to investigate complaints filed with the Division.

(2) The Division may, in accordance with Title 63G, Chapter 4, Administrative Procedures Act, issue an order to deny, suspend, or revoke a registration, upon a finding that:

(a) the award of credentials by a nonexempt institution without having first duly registered with the Division and having obtained the requisite surety;

(b) a registration statement application that contains material representations which are incomplete, improper, or incorrect;

(c) failure to maintain facilities and equipment in a safe and healthful manner;

(d) failure to perform the services or provide materials as represented by the institution, failure to perform any commitment made in the registration statement or permit application, offering programs or services not contained in the registration statement currently on file, or violations of the conditions of the certificate of registration;

(e) failure to maintain sufficient financial capability, as set forth in section R152-34-7;

(f) to confer, or attempt to confer, a fraudulent credential, as set forth in 13-34-201;

(g) employment of students for commercial gain, if such fact is not contained in the current registration statement;

(h) promulgation to the public of fraudulent or misleading statements relating to a program or service offered;

(i) failure to comply with the Postsecondary Proprietary School[s] Act or these rules;

(j) withdrawal of the authority to operate in the home state of an institution whose parent campus or headquarters is not domiciled in this state;

(k) failure to comply with applicable laws in this state or another state where the institution is doing business; and

(l) failure to provide reasonable information to the Division as requested from time to time.

(3) A violation of these administrative rules is also a violation of the Utah Consumer Sales Practices Act and accompanying administrative rules.

 

KEY: education, postsecondary proprietary schools, registration, consumer protection

Date of Enactment or Last Substantive Amendment: [December 5, 2012]2014

Notice of Continuation: June 14, 2012

Authorizing, and Implemented or Interpreted Law: 13-2-5(1)