HB 1089

1
A bill to be entitled
2An act relating to independent postsecondary education;
3amending s. 1005.22, F.S.; revising a duty of the
4Commission for Independent Education relating to
5rulemaking; amending s. 1005.31, F.S.; providing
6requirements of independent postsecondary educational
7institutions licensed by the commission; providing
8requirements for an investigative process for licensure of
9applicants; revising provisions relating to applicant
10status; providing for inspections; creating s. 1005.375,
11F.S.; specifying acts that constitute violations and
12providing penalties therefor; amending s. 1005.38, F.S.;
13providing requirements for investigation of a suspected
14violation of the chapter or rules; providing for denial of
15licensure; providing additional grounds for disciplinary
16actions; providing for a final order to dismiss a
17complaint or impose specified penalties; providing for
18imposition of an assessment relating to investigation and
19prosecution of a case; providing for an emergency
20suspension or restriction order; creating s. 1005.385,
21F.S.; requiring the commission to adopt rules relating to
22issuance of a citation to an institution and violations
23for which a citation may be issued; specifying
24requirements for issuance; amending s. 1010.83, F.S.;
25providing for the inclusion in the Institutional
26Assessment Trust Fund of fees and fines imposed on
27institutions; specifying separate accounts; revising uses
28of funds in the trust fund; providing an effective date.
29
30Be It Enacted by the Legislature of the State of Florida:
31
32     Section 1.  Paragraph (e) of subsection (1) of section
331005.22, Florida Statutes, is amended to read:
34     1005.22  Powers and duties of commission.--
35     (1)  The commission shall:
36     (e)  Administer the provisions of this chapter. To this
37end, the commission has the following administrative powers and
38responsibilities:
39     1.  The commission shall adopt rules pursuant to ss.
40120.536(1) and 120.54 for the operation and establishment of
41independent postsecondary educational institutions. The
42commission shall submit the rules to the State Board of
43Education for approval or disapproval. If the state board does
44not act on a rule within 60 days after receiving it, the rule
45shall be filed immediately with the Department of State.
46     2.  The commission shall submit an annual budget to the
47State Board of Education.
48     3.  The commission shall transmit all fees, donations, and
49other receipts of money to the Institutional Assessment Trust
50Fund.
51     4.  The commission shall expend funds as necessary to
52assist in the application and enforcement of its powers and
53duties. The Chief Financial Officer shall pay out all moneys and
54funds as directed under this chapter upon vouchers approved by
55the Department of Education for all lawful purposes necessary to
56administering this chapter. The commission shall make annual
57reports to the State Board of Education showing in detail
58amounts received and all expenditures. The commission shall
59include in its annual report to the State Board of Education a
60statement of its major activities during the period covered by
61the report.
62     Section 2.  Subsections (1) and (4) of section 1005.31,
63Florida Statutes, are amended, subsections (6) through (13) are
64renumbered as subsections (7) through (14), respectively, and
65new subsections (6) and (15) are added to said section, to read:
66     1005.31  Licensure of institutions.--
67     (1)(a)  Each college or school operating within this state
68must obtain licensure from the commission unless the institution
69is not under the commission's purview or jurisdiction as
70provided in s. 1005.06.
71     (b)  Each licensee is solely responsible for notifying the
72commission in writing of the licensee's current mailing address
73and the location of the institution. A licensee's failure to
74notify the commission of a change of address constitutes a
75violation of this paragraph, and the licensee may be disciplined
76by the commission. Notwithstanding any other provision of law,
77service by regular mail to a licensee's last known address of
78record with the commission constitutes adequate and sufficient
79notice to the licensee for any official communication to the
80licensee by the commission.
81     (4)  Approved-applicant status shall be extended to all
82institutions that have submitted a complete application, as
83defined in rule, for provisional licensure and paid all
84attendant fees. An incomplete application shall expire 1 year
85after initial filing. In granting approved-applicant status, the
86commission shall provide to commission staff and the institution
87a list of specific omissions or deficiencies. Institutions
88granted approved-applicant status may not advertise, offer
89programs of study, collect tuition or fees, or engage in any
90other activities not specifically approved by the commission. If
91the commission, or the commission staff if specifically directed
92by the commission, determines that identified the omissions or
93deficiencies have been provided for or corrected, the
94institution may be awarded a provisional license.
95     (6)  The commission shall ensure through an investigative
96process that applicants for licensure meet the standards as
97defined in rule. When the investigative process is not completed
98within the time set out in s. 120.60(1) and the commission has
99reason to believe that the applicant does not meet licensure
100standards, the commission or the executive director of the
101commission may issue a 90-day licensure delay, which shall be in
102writing and sufficient to notify the applicant of the reason for
103the delay. The provisions of this subsection shall control over
104any conflicting provisions of s. 120.60(1).
105     (15)  Duly authorized agents and employees of the
106commission shall have the power to inspect, in a lawful manner
107at all reasonable hours, any applicant for licensure or licensed
108independent postsecondary educational institution.
109     Section 3.  Section 1005.375, Florida Statutes, is created
110to read:
111     1005.375  Violations; penalties.--
112     (1)  Each of the following acts constitutes a felony of the
113third degree, punishable as provided in s. 775.082, s. 775.083,
114or s. 775.084:
115     (a)  Operating an independent postsecondary educational
116institution without a valid, active license issued pursuant to
117this chapter.
118     (b)  Obtaining or attempting to obtain a license to operate
119an institution by fraudulent misrepresentation.
120     (c)  Using or attempting to use a license that has been
121suspended or revoked.
122     (2)  Each of the following acts constitutes a misdemeanor
123of the second degree, punishable as provided in s. 775.082 or s.
124775.083:
125     (a)  Knowingly concealing information relating to
126violations of this chapter.
127     (b)  Willfully making any false oath or affirmation when
128required to make an oath or affirmation pursuant to this
129chapter.
130     Section 4.  Subsections (6) and (8) of section 1005.38,
131Florida Statutes, are amended, and subsections (9) through (12)
132are added to said section, to read:
133     1005.38  Actions against a licensee and other penalties.--
134     (6)  The commission may conduct disciplinary proceedings
135through an investigation of any suspected violation of this
136chapter or any rule of the commission, including a finding of
137probable cause and making reports to any law enforcement agency
138or regulatory agency.
139     (a)  The commission shall cause to be investigated a
140suspected violation of any provision of this chapter or any rule
141of the commission. Regardless of the source of information
142regarding the suspected violation, an investigation may be
143continued until it is completed and an investigative report is
144presented to a probable cause panel of the commission.
145     (b)(a)  The commission shall notify an institution or
146individual of the substance of any complaint that is under
147investigation unless the executive director and chairperson of
148the commission board concur that notification would impede the
149investigation. The commission may also withhold notification to
150a person under investigation for an act that constitutes a
151criminal offense.
152     (c)(b)  The determination of probable cause shall be made
153by a majority vote of the probable cause probable-cause panel,
154the membership of which shall be provided by rule. After the
155panel declares a finding of probable cause, the commission may
156issue an administrative complaint and prosecute such complaint
157under chapter 120.
158     (d)(c)  A privilege against civil liability is granted to
159any informant or any witness who provides information in good
160faith for an investigation or proceeding conducted under this
161section.
162     (e)  Upon written request by an informant, the commission
163shall notify the informant of the status of an investigation,
164civil action, or administrative proceeding.
165     (f)  The commission may deny initial licensure, renewal
166licensure, or amended licensure on the basis of all information
167available to the commission. Such actions shall not be
168considered disciplinary and shall not require probable cause
169proceedings.
170     (8)  The commission shall adopt rules to identify grounds
171for imposing disciplinary actions for violations of this chapter
172or rules of the commission or for denial of a license, which
173must include at least the following grounds:
174     (a)  Attempting to obtain action from the commission by
175fraudulent misrepresentation, bribery, or through an error of
176the commission.
177     (b)  Action against a license or operation imposed under
178the authority of another state, territory, or country.
179     (c)  Delegating professional responsibilities to a person
180who is not qualified by training, experience, or licensure to
181perform the responsibilities.
182     (d)  False, deceptive, or misleading advertising.
183     (e)  Conspiring to coerce, intimidate, or preclude another
184licensee from lawfully advertising his or her services.
185     (f)  Violating or repeatedly violating any provision of
186this chapter or any rule adopted pursuant thereto.
187     (g)  Operating with a revoked, suspended, or inactive
188license.
189     (h)  Violating any lawful order of the commission
190previously entered in a disciplinary hearing or failing to
191comply with a lawfully issued subpoena.
192     (9)  The commission shall enter a final order either
193dismissing a complaint or imposing one or more of the following
194penalties for any violation of this chapter or any rule of the
195commission:
196     (a)  Denial of an application for licensure.
197     (b)  Revocation or suspension of a license.
198     (c)  Imposition of an administrative fine of no less than
199$100 and no more than $5,000 for each count or separate
200violation. Such fine shall be deposited in the Institutional
201Assessment Trust Fund pursuant to s. 1010.83.
202     (d)  Placement of a licensee on probation for a period of
203time and subject to such conditions as the commission may
204specify.
205     (e)  Issuance of a written reprimand to an institution.
206Such reprimand shall be posted in a prominent place at the
207institution for such period of time as the commission may
208specify.
209     (10)  In addition to any discipline imposed through final
210order entered for a violation of this chapter or commission
211rule, the commission shall assess costs related to the
212investigation and prosecution of the case. Such costs include,
213but are not limited to, salaries and benefits of personnel,
214costs related to time spent by an attorney and other personnel
215working on the case, and any other expenses incurred by the
216commission in relation to the case. The commission shall
217determine the amount of costs to be assessed after its
218consideration of an affidavit of itemized costs and any written
219objections thereto.
220     (11)  In any case in which the commission imposes a fine or
221an assessment of costs and the fine or assessment is not paid
222within a reasonable time, such reasonable time to be prescribed
223in commission rule or in the order assessing such fine or
224assessment, the commission or the Department of Legal Affairs
225may contract for the collection of, or bring a civil action to
226recover, the fine or assessment.
227     (12)  The commission shall not reinstate the license of an
228institution, or cause a license to be issued to an institution
229it has deemed unqualified, until such time as it is satisfied
230that the institution has complied with all the terms and
231conditions set forth in the final order.
232     (13)  The commission shall issue an emergency order
233suspending or limiting the license of an institution if there is
234a finding that an immediate danger to the public health, safety,
235or welfare requires emergency action. The executive director of
236the commission shall review the matter to determine if the
237emergency suspension or restriction order is warranted. Nothing
238in this subsection shall be construed to limit the authority of
239the executive director to issue an emergency order.
240     Section 5.  Section 1005.385, Florida Statutes, is created
241to read:
242     1005.385  Authority to issue citations.--
243     (1)  The commission shall adopt rules to permit the
244issuance of citations. A citation shall be issued to an
245independent postsecondary educational institution and shall
246contain the institution's name and address, the institution's
247license number if applicable, a brief factual statement, the
248sections of law allegedly violated, and the penalty imposed. A
249citation must clearly state that the subject may choose, in lieu
250of accepting the citation, to dispute the matter in the citation
251and must provide the subject all rights for either an informal
252hearing to dispute the facts before the commission or a formal
253hearing to dispute the facts before an administrative law judge
254from the Division of Administrative Hearings pursuant to chapter
255120. However, if the subject does not dispute the matter in the
256citation within 30 days after the citation is served, the
257citation becomes a final order and constitutes discipline. The
258penalty shall be a fine or other conditions as established by
259rule.
260     (2)  The commission shall adopt rules designating
261violations for which a citation may be issued. A violation so
262designated shall be a violation for which there is no
263substantial threat to the public health, safety, or welfare.
264     (3)  The commission shall be entitled to recover the costs
265of investigation, in addition to any penalty provided according
266to rule, as part of the penalty levied pursuant to a citation.
267     (4)  A citation must be issued within 6 months after the
268filing of a complaint that is the basis for the citation.
269     (5)  Service of a citation may be made by personal service
270or certified mail, restricted delivery, to the subject at the
271subject's last known address of record.
272     Section 6.  Section 1010.83, Florida Statutes, is amended
273to read:
274     1010.83  Institutional Assessment Trust Fund.--
275     (1)  Chapter 99-32, Laws of Florida, re-created the
276Institutional Assessment Trust Fund to be administered by the
277Department of Education pursuant to this section and rules of
278the State Board of Education. The trust fund shall consist of
279all fees and fines imposed upon nonpublic colleges and schools
280pursuant to this chapter and chapter 1005, including all fees
281collected from nonpublic colleges and schools for participation
282in the Student Protection Fund and the statewide common course
283designation and numbering system. The department shall maintain
284separate revenue accounts for the operation of the Commission
285for Independent Education independent colleges and universities;
286the Student Protection Fund nonpublic career education; and the
287Department of Education.
288     (2)  Funds from the trust fund shall be used for purposes
289including, but not limited to, the following:
290     (a)  Authorized expenses of the Commission for Independent
291Education respective boards in carrying out its their required
292duties.
293     (b)  Financial assistance programs for students who attend
294nonpublic institutions licensed by the board.
295     (c)  Educational programs for the benefit of current and
296prospective owners, administrators, agents, authorized groups of
297individuals, and faculty of institutions receiving a license, a
298certificate of exemption, or an authorization by the board.
299     (b)(d)  Authorized expenses from of the Department of
300Education account incurred as a result of the inclusion of
301nonpublic colleges in the statewide course numbering system.
302     (c)  Expenses authorized by the Commission for Independent
303Education from the Student Protection Fund account to complete
304the training of students enrolled in an institution that
305terminates a program or ceases operation while the student is
306enrolled or to facilitate the retrieval or safekeeping of
307records from a closed institution.
308     (3)  The Commission for Independent Education board may
309utilize other individuals or entities to administer the programs
310authorized in subsection (2).
311     Section 7.  This act shall take effect July 1, 2005.


CODING: Words stricken are deletions; words underlined are additions.