Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. CS for SB 800
       
       
       
       
       
       
                                Ì7111683Î711168                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/15/2016           .                                
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       Appropriations Subcommittee on Education (Stargel) recommended
       the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (1) of section 1005.04, Florida
    6  Statutes, is amended to read:
    7         1005.04 Fair consumer practices.—
    8         (1) Every institution that is under the jurisdiction of the
    9  commission or is exempt from the jurisdiction or purview of the
   10  commission pursuant to s. 1005.06(1)(c) or (f) and that either
   11  directly or indirectly solicits for enrollment any student
   12  shall:
   13         (a) Disclose to each prospective student a statement of the
   14  purpose of such institution, its educational programs and
   15  curricula, a description of its physical facilities, its status
   16  regarding licensure, its fee schedule, including all fees and
   17  costs that will be incurred by a student for completion of a
   18  program at the institution, and policies regarding retaining
   19  student fees if a student withdraws, and a statement regarding
   20  the transferability of credits to and from other institutions.
   21  The institution shall make the required disclosures in writing
   22  at least 1 week prior to enrollment or collection of any tuition
   23  from the prospective student. The required disclosures may be
   24  made in the institution’s current catalog;
   25         (b) Use a reliable method to assess, before accepting a
   26  student into a program, the student’s ability to complete
   27  successfully the course of study for which he or she has
   28  applied;
   29         (c) Inform each student accurately about financial
   30  assistance and obligations for repayment of loans; describe any
   31  employment placement services provided and the limitations
   32  thereof; and refrain from promising or implying guaranteed
   33  placement, market availability, or salary amounts;
   34         (d) Provide to prospective and enrolled students accurate
   35  information regarding the relationship of its programs to state
   36  licensure requirements for practicing related occupations and
   37  professions in Florida;
   38         (e) Ensure that all advertisements are accurate and not
   39  misleading;
   40         (f) Publish and follow an equitable prorated refund policy
   41  for all students, and follow both the federal refund guidelines
   42  for students receiving federal financial assistance and the
   43  minimum refund guidelines set by commission rule;
   44         (g) Follow the requirements of state and federal laws that
   45  require annual reporting with respect to crime statistics and
   46  physical plant safety and make those reports available to the
   47  public; and
   48         (h) Publish and follow procedures for handling student
   49  complaints, disciplinary actions, and appeals.
   50         Section 2. Section 1005.11, Florida Statutes, is created to
   51  read:
   52         1005.11Accountability for institutions licensed by the
   53  Commission for Independent Education.—
   54         (1)By March 15 of each year, the commission shall prepare
   55  an annual accountability report for licensed institutions. The
   56  report must contain, at a minimum, the graduation rates,
   57  including the number of graduates by program, retention rates,
   58  and placement rates for all licensed institutions.
   59         (2)By November 30 of each year, each licensed institution
   60  shall provide data to the commission in a format prescribed by
   61  the commission. Placement rates shall be determined using
   62  Florida Education and Training Placement Information Program
   63  methodology. The commission shall establish a common set of data
   64  definitions that are consistent with those used by the United
   65  States Department of Education for institutional reporting
   66  purposes.
   67         (3)The commission shall impose an administrative fine of
   68  not more than $1,000 when a licensed institution fails to timely
   69  submit the required data to the commission pursuant to this
   70  section. Administrative fines collected under this subsection
   71  shall be deposited into the Student Protection Fund.
   72         (4)The commission shall establish by rule performance
   73  benchmarks to identify high-performing institutions licensed by
   74  the commission. Licensed institutions with graduation rates,
   75  retention rates, and placement rates equal to or higher than the
   76  average rates of all Florida universities, colleges, or career
   77  centers, as appropriate, may receive and use the designation of
   78  “high performing.”
   79         Section 3. Paragraphs (c) and (d) of subsection (2) and
   80  subsection (3) of section 1005.21, Florida Statutes, are amended
   81  to read:
   82         1005.21 Commission for Independent Education.—
   83         (2) The Commission for Independent Education shall consist
   84  of seven members who are residents of this state. The commission
   85  shall function in matters concerning independent postsecondary
   86  educational institutions in consumer protection, program
   87  improvement, and licensure for institutions under its purview.
   88  The Governor shall appoint the members of the commission who are
   89  subject to confirmation by the Senate. The membership of the
   90  commission shall consist of:
   91         (c) One member who is an employer of graduates of
   92  institutions licensed by the commission. The member may not have
   93  any other relationship with an institution subject to licensure
   94  by the commission except for his or her status as an employer of
   95  graduates of the institution from a public school district or
   96  Florida College System institution who is an administrator of
   97  career education.
   98         (d) One member who is a graduate of an institution subject
   99  to licensure by the commission. The member may not have any
  100  other relationship with an institution subject to licensure by
  101  the commission except for his or her status as an alumnus
  102  representative of a college that meets the criteria of s.
  103  1005.06(1)(f).
  104         (3) The members of the commission shall be appointed to 3
  105  year terms. Members may serve no more than three consecutive
  106  terms or and until their successors are appointed and qualified,
  107  whichever occurs first. If a vacancy on the commission occurs
  108  before the expiration of a term, the Governor shall appoint a
  109  successor to serve the unexpired portion of the term.
  110         Section 4. Paragraphs (e) and (k) of subsection (1) of
  111  section 1005.22, Florida Statutes, are amended, and paragraph
  112  (j) is added to subsection (2) of that section, to read:
  113         1005.22 Powers and duties of commission.—
  114         (1) The commission shall:
  115         (e) Administer the provisions of this chapter. To this end,
  116  the commission has the following administrative powers and
  117  responsibilities:
  118         1. The commission shall adopt rules pursuant to ss.
  119  120.536(1) and 120.54 for the operation and establishment of
  120  independent postsecondary educational institutions. The
  121  commission shall submit the rules to the State Board of
  122  Education for approval or disapproval. If the state board does
  123  not act on a rule within 60 days after receiving it, the rule
  124  shall be filed immediately with the Department of State.
  125         2. The commission shall approve and submit an annual budget
  126  to the State Board of Education.
  127         3. The commission shall transmit all fees, donations, and
  128  other receipts of money to the Institutional Assessment Trust
  129  Fund.
  130         4. The commission shall expend funds as necessary to assist
  131  in the application and enforcement of its powers and duties. The
  132  Chief Financial Officer shall pay out all moneys and funds as
  133  directed under this chapter upon vouchers approved by the
  134  Department of Education for all lawful purposes necessary to
  135  administering this chapter. The commission shall make annual
  136  reports to the State Board of Education showing in detail
  137  amounts received and all expenditures. The commission shall
  138  include in its annual report to the State Board of Education a
  139  statement of its major activities during the period covered by
  140  the report.
  141         (k) Establish and publicize the procedures for receiving
  142  and responding to complaints from students, faculty, and others
  143  concerning institutions or programs under the purview of the
  144  commission, and keep records of such complaints in order to
  145  determine the frequency and nature of complaints with respect to
  146  specific institutions of higher education. Complaints not closed
  147  within 90 days shall be reviewed by a committee appointed by the
  148  commission.
  149         (2) The commission may:
  150         (j)Prohibit a licensed institution from enrolling new
  151  students, or limit the number of students in a program at a
  152  licensed institution, based on the institution’s performance.
  153         Section 5. Subsections (5) through (16) of section 1005.31,
  154  Florida Statutes, are renumbered as subsections (6) through
  155  (17), respectively, subsection (2) and present subsection (6)
  156  are amended, and a new subsection (5) is added to that section,
  157  to read:
  158         1005.31 Licensure of institutions.—
  159         (2) The commission shall develop minimum standards by which
  160  to evaluate institutions for licensure. These standards must
  161  include, at a minimum, at least the institution’s: name,
  162  financial stability, purpose, administrative organization,
  163  admissions and recruitment, educational programs and curricula,
  164  retention and, completion, including a retention and completion
  165  management plan, career placement, faculty, learning resources,
  166  student personnel services, physical plant and facilities,
  167  publications, and disclosure statements about the status of the
  168  institution with respect to professional certification and
  169  licensure. The commission may adopt rules to ensure that
  170  institutions licensed under this section meet these standards in
  171  ways that are appropriate to achieve the stated intent of this
  172  chapter, including provisions for nontraditional or distance
  173  education programs and delivery.
  174         (5)The commission may require institutions that do not
  175  provide sufficient evidence of financial stability at the time
  176  of application for a provisional license or that are dependent
  177  upon financial resources located outside of the United States to
  178  post and maintain a surety bond to assist each enrolled student
  179  in completing his or her program of enrollment in the event that
  180  the institution closes before receiving its first annual
  181  licensure renewal. In lieu of a surety bond, the commission may
  182  require an institution to establish and maintain a cash deposit
  183  escrow account or an irrevocable letter of credit payable to the
  184  commission in an amount not to exceed 50 percent of the
  185  institution’s projected revenue for its first year. The
  186  commission shall adopt rules to implement this subsection.
  187         (7)(6) The commission shall ensure through an investigative
  188  process that applicants for licensure meet the standards as
  189  defined in rule. Within 30 days after receipt of an application,
  190  the commission shall examine the application, notify the
  191  applicant of any apparent errors or omissions, and request any
  192  necessary additional information from the applicant. When the
  193  investigative process is not completed within the time set out
  194  in s. 120.60(1) and the commission has reason to believe that
  195  the applicant does not meet licensure standards, the commission
  196  or the executive director of the commission may issue a 90-day
  197  licensure delay, which shall be in writing and sufficient to
  198  notify the applicant of the reason for the delay. The provisions
  199  of this subsection shall control over any conflicting provisions
  200  of s. 120.60(1).
  201         Section 6. Paragraph (e) of subsection (1) and subsection
  202  (3) of section 1005.32, Florida Statutes, are amended to read:
  203         1005.32 Licensure by means of accreditation.—
  204         (1) An independent postsecondary educational institution
  205  that meets the following criteria may apply for a license by
  206  means of accreditation from the commission:
  207         (e) The institution is a Florida corporation.
  208         (3) The commission may not require an institution granted a
  209  license by means of accreditation to submit reports that differ
  210  from the reports required by its accrediting association, except
  211  that each institution must file with the commission an annual
  212  audit report and a retention and completion management plan
  213  pursuant to s. 1005.31. The institution must also follow the
  214  commission’s requirements for orderly closing, including
  215  provisions for trainout or refunds and arranging for the proper
  216  disposition of student and institutional records.
  217         Section 7. Subsections (3) and (4) of section 1005.36,
  218  Florida Statutes, are renumbered as subsections (4) and (5),
  219  respectively, subsection (2) is amended, and a new subsection
  220  (3) is added to that section, to read:
  221         1005.36 Institutional closings.—
  222         (2) At least 30 days before prior to closing an
  223  institution, its owners, directors, or administrators shall
  224  notify the commission in writing of the closure of the
  225  institution. The owners, directors, and administrators must
  226  organize an orderly closure of the institution, which means at
  227  least providing for the completion of training of its students.
  228  The commission must approve any such plan. An owner, director,
  229  or administrator who fails to notify the commission at least 30
  230  days before prior to the institution’s closure, or who fails to
  231  organize the orderly closure of the institution and the trainout
  232  of the students, commits a misdemeanor of the first second
  233  degree, punishable as provided in s. 775.082 or s. 775.083.
  234         (3)By October 1, 2016, the commission shall establish a
  235  Closed Institution Panel. The panel shall consist of at least
  236  one commission member, one commission staff member, one
  237  accrediting body staff member, and one administrator with
  238  experience managing licensed institutions. The commission shall
  239  notify the panel upon the closing of a licensed institution. For
  240  any closure that does not comply with the requirements of
  241  subsection (2), or at the discretion of the commission chair,
  242  the panel shall convene to implement measures to minimize the
  243  academic, logistical, and financial impact on students of the
  244  institution. The panel is authorized to secure student records
  245  and, to the extent possible, maintain the educational programs
  246  at the institution for at least 30 days after it receives
  247  notification that the institution is closing to assist each
  248  student with completion of his or her educational program. The
  249  panel’s activities shall be conducted at the expense of the
  250  institution that is closing.
  251         Section 8. Section 1005.37, Florida Statutes, is amended to
  252  read:
  253         1005.37 Student Protection Fund.—
  254         (1) The commission shall establish and administer a
  255  statewide, fee-supported financial program through which funds
  256  will be available to complete the training of a student who
  257  enrolls in a licensed institution nonpublic school that
  258  terminates a program or ceases operation before the student has
  259  completed his or her program of study. The financial program is
  260  named the Student Protection Fund.
  261         (2) The commission is authorized to assess a fee from the
  262  licensed institutions schools within its jurisdiction for such
  263  purpose. The commission shall assess a licensed institution
  264  school an additional fee for its eligibility for the Student
  265  Protection Fund. Fees to support the fund shall be determined
  266  annually by the commission; however, if the fund balance exceeds
  267  $5 million on November 1 of any year, the fees may not be
  268  collected in the next calendar year.
  269         (3) If a licensed institution school terminates a program
  270  before all students complete it, the commission shall also
  271  assess that institution school a fee adequate to pay the full
  272  cost to the Student Protection Fund of completing the training
  273  of students.
  274         (4) The fund shall consist entirely of fees assessed to
  275  licensed institutions schools and shall not be funded under any
  276  circumstances by public funds, nor shall the commission make
  277  payments or be obligated to make payments in excess of the
  278  assessments actually received from licensed institutions schools
  279  and deposited in the Institutional Assessment Trust Fund to the
  280  credit of the Student Protection Fund.
  281         (5) At each commission meeting, the commission shall
  282  consider the need for and shall make required assessments, shall
  283  review the collection status of unpaid assessments and take all
  284  necessary steps to collect them, and shall review all moneys in
  285  the fund and expenses incurred since the last reporting period.
  286  This review must include administrative expenses, moneys
  287  received, and payments made to students or to lending
  288  institutions.
  289         (6) Staff of the commission must immediately inform the
  290  commission upon learning of the closing of a licensed
  291  institution school or the termination of a program that could
  292  expose the fund to liability.
  293         (7) The Student Protection Fund must be actuarially sound,
  294  periodically audited by the Auditor General in connection with
  295  his or her audit of the Department of Education, and reviewed to
  296  determine if additional fees must be charged to licensed
  297  institutions schools eligible to participate in the fund.
  298         Section 9. Subsections (1), (3), and (4) of section
  299  1005.39, Florida Statutes, are amended to read:
  300         1005.39 Continuing education and training for
  301  administrators and faculty.—
  302         (1) The commission shall determine whether is authorized to
  303  ensure that the administrators of licensed institutions are
  304  qualified to conduct the operations of their respective
  305  positions and to require such administrators and faculty to
  306  receive continuing education and training as adopted by rule of
  307  the commission. The positions for which the commission must may
  308  review qualifications and require continuing education and
  309  training may include the positions of chief administrator or
  310  officer, chief campus officer, director of education or
  311  training, placement director, admissions director, and financial
  312  aid director and faculty members. By July 1, 2017, and annually
  313  thereafter, the commission must verify that all administrators
  314  subject to continuing education requirements have completed
  315  training on state and federal laws and regulations specifically
  316  pertaining to the operation of nonpublic postsecondary
  317  institutions.
  318         (3) The commission shall adopt general qualifications for
  319  each of the respective positions and establish guidelines for
  320  the minimum amount and type of continuing education and training
  321  to be required. The continuing education and training may be
  322  provided by the commission, appropriate state or federal
  323  agencies, or professional organizations familiar with the
  324  requirements of the particular administrative positions.
  325  Continuing education may also be provided by licensed
  326  institutions upon approval of the commission. The actual
  327  curricula should be left to the discretion of those agencies,
  328  and organizations, and, if approved, licensed institutions.
  329         (4) Evidence of administrator the administrator’s and
  330  faculty member’s compliance with the continuing education and
  331  training requirements established by the commission must may be
  332  included in the initial and renewal application forms provided
  333  to by the commission. Actual records of the continuing education
  334  and training received by administrators and faculty shall be
  335  maintained at the institution and available for inspection at
  336  all times.
  337         Section 10. This act shall take effect July 1, 2016.
  338  
  339  ================= T I T L E  A M E N D M E N T ================
  340  And the title is amended as follows:
  341         Delete everything before the enacting clause
  342  and insert:
  343                        A bill to be entitled                      
  344         An act relating to independent postsecondary
  345         educational institutions; amending s. 1005.04, F.S.;
  346         requiring that certain institutions include specified
  347         information relating to student fees and costs in a
  348         disclosure to prospective students; creating s.
  349         1005.11, F.S.; requiring the Commission for
  350         Independent Education to annually prepare an
  351         accountability report by a specified date; requiring
  352         licensed institutions to annually provide certain data
  353         to the commission by a specified date and authorizing
  354         administrative fines for an institution that fails to
  355         timely submit the data; requiring placement rates to
  356         be determined using a specified methodology; requiring
  357         the commission to establish a common set of data
  358         definitions; requiring the commission to establish
  359         certain benchmarks by rule; providing for the
  360         designation of certain licensed institutions as “high
  361         performing”; amending s. 1005.21, F.S.; revising the
  362         commission’s membership; limiting the terms of
  363         commission members; amending s. 1005.22, F.S.;
  364         requiring the commission to approve an annual budget;
  365         providing for the review of certain complaints
  366         concerning institutions or programs which are not
  367         closed within a specified time; authorizing the
  368         commission to prohibit the enrollment of new students,
  369         or limit the number of students in a program at, a
  370         licensed institution under certain circumstances;
  371         amending s. 1005.31, F.S.; revising the commission’s
  372         evaluation standards for licensure of an institution;
  373         requiring certain institutions to post a surety bond
  374         or similar financial security for specified purposes;
  375         requiring the commission to adopt rules; requiring the
  376         commission to examine an application for licensure and
  377         take certain actions within a specified period;
  378         amending s. 1005.32, F.S.; deleting a provision
  379         authorizing an institution that is a Florida
  380         corporation to apply for licensure by means of
  381         accreditation; requiring institutions granted
  382         licensure through accreditation to file a retention
  383         and completion management plan; amending s. 1005.36,
  384         F.S.; revising the criminal penalty for the unlawful
  385         closure of certain institutions; requiring the
  386         commission to create a Closed Institution Panel;
  387         providing membership and duties of the panel;
  388         providing that the panel’s activities be conducted at
  389         the expense of certain institutions; amending s.
  390         1005.37, F.S.; requiring the commission to annually
  391         determine fees to support the Student Protection Fund;
  392         providing that fees may not be collected under certain
  393         circumstances; amending s. 1005.39, F.S.; requiring
  394         the commission to determine whether certain personnel
  395         of licensed institutions are qualified and require
  396         certain personnel to complete continuing education and
  397         training; requiring the commission to annually verify
  398         that certain personnel have completed certain training
  399         by a specified date; authorizing continuing education
  400         to be provided by licensed institutions under certain
  401         circumstances; requiring certain evidence be included
  402         in initial or renewal application forms provided by
  403         the commission; providing an effective date.