Bill Text: IN HB1270 | 2012 | Regular Session | Enrolled
Bill Title: Higher education.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Enrolled - Dead) 2012-03-16 - Signed by the Governor [HB1270 Detail]
Download: Indiana-2012-HB1270-Enrolled.html
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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AN ACT to amend the Indiana Code concerning education.
(1) is located in Indiana or is a state educational institution;
(2) is subject to rules adopted by the bureau under IC 9-24-6-5.5; and
(3) either:
(A) educates or trains a person; or
(B) prepares a person for an examination or a validation given
by the bureau;
to operate a truck as a vocation.
(b) The rules adopted under IC 4-22-2 by the Indiana commission on proprietary education established by IC 21-17-2-1 (before its repeal) concerning truck driver training schools are considered, after December 31, 2011, rules of the bureau.
(c) The rules adopted under IC 4-22-2 by the Indiana criminal justice institute established by IC 5-2-6-3 concerning commercial driver training schools are considered, after December 31, 2011, rules of the bureau.
(d) The rules adopted under IC 4-22-2 by the department of state revenue established by IC 6-8.1-2-1 concerning a student of a truck driver training school and a truck driver training school are considered, after December 31, 2011, rules of the bureau.
(e) The rules adopted under IC 4-22-2 by the Indiana state board of education established by IC 20-19-2-2 concerning driver education are considered, after December 31, 2011, rules of the bureau.
(1) An individual, whether acting as the operator of a commercial driver training school or on behalf of a commercial driver training school, who for compensation teaches, conducts classes for, gives demonstrations to, or supervises the practice of individuals learning to operate or drive motor vehicles or preparing to take an examination for a driver's license.
(2) An individual who supervises the work of an instructor.
(3) An individual licensed under IC 20-28-5-1.
(4) An individual under the authority of a postsecondary proprietary educational institution (as defined in
(5) An individual under the authority of a state educational
institution (as defined in IC 21-7-13-32) who is teaching,
conducting classes for, giving demonstrations to, or supervising
the practice of individuals learning to operate or drive motor
vehicles or preparing to take an examination for a driver's license.
(1) school corporation (as defined in IC 36-1-2-17);
(2) nonpublic secondary school that voluntarily becomes accredited under IC 20-19-2-8;
(3) nonpublic secondary school recognized under IC 20-19-2-10;
(4) postsecondary proprietary educational institution (as defined in
(5) postsecondary credit bearing proprietary educational institution (as defined in IC 21-18.5-2-12);
the entity providing the training must obtain a school license from the bureau in the manner and form prescribed by the bureau.
(b) Subject to subsection (c), the bureau shall adopt rules under IC 4-22-2 that state the requirements for obtaining a school license. The rules adopted must be substantially equivalent to rules adopted under section 6(b) of this chapter.
(c) The rules adopted under subsection (b) must provide that the classroom training part of driver education instruction may not be provided to a child less than fifteen (15) years of age.
(b) The plan developed under this section must be updated as changes occur. The state board shall make the plan and any revisions made to the plan available to:
(1) the governor;
(2) the general assembly;
(3) the department of workforce development;
(4) the commission for higher education;
(5) the council;
(6) the
workforce innovation council; and
(7) the board for proprietary education; and
(7) (8) any other appropriate state or federal agency.
A plan or revised plan submitted under this section to the general
assembly must be in an electronic format under IC 5-14-6.
(c) The plan developed under this section must set forth specific
goals for secondary level public career and technical education and
must include the following:
(1) The preparation of each graduate for both employment and
further education.
(2) Accessibility of career and technical education to individuals
of all ages who desire to explore and learn for economic and
personal growth.
(3) Projected employment opportunities in various career and
technical education fields.
(4) A study of the supply of and the demand for a labor force
skilled in particular career and technical education areas.
(5) A study of technological and economic change affecting
Indiana.
(6) An analysis of the private career and education sector in
Indiana.
(7) Recommendations for improvement in the state career and
technical education program.
(8) The educational levels expected of career and technical
education programs proposed to meet the projected employment
needs.
(1) Make recommendations to the general assembly concerning the development, duplication, and accessibility of employment training and career and technical education on a regional and statewide basis.
(2) Consult with any state agency, commission, or organization that supervises or administers programs of career and technical education concerning the coordination of career and technical education, including the following:
(A) The Indiana economic development corporation.
(B) The council.
(C) A private industry council (as defined in 29 U.S.C. 1501 et seq.).
(D) The department of labor.
(G) The state workforce innovation council.
(H) The board for proprietary education.
(3) Review and make recommendations concerning plans submitted by the commission for higher education and the council. The state board may request the resubmission of plans or parts of plans that:
(A) are not consistent with the long range state plan of the state board;
(B) are incompatible with other plans within the system; or
(C) duplicate existing services.
(4) Report to the general assembly on the state board's conclusions and recommendations concerning interagency cooperation, coordination, and articulation of career and technical education and employment training. A report under this subdivision must be in an electronic format under IC 5-14-6.
(5) Study and develop a plan concerning the transition between secondary level career and technical education and postsecondary level career and technical education.
(6) Enter into agreements with the federal government that may be required as a condition of receiving federal funds under the Carl D. Perkins Vocational and Applied Technology Act (20 U.S.C. 2301 et seq.). An agreement entered into under this subdivision is subject to the approval of the budget agency.
(1) A postsecondary educational institution that operates in Indiana and:
(A) provides an organized two (2) year or longer program of collegiate grade directly creditable toward a baccalaureate degree;
(B) is either operated by the state or operated nonprofit; and
(C) is accredited by a recognized regional accrediting agency, including:
(i) Ancilla College;
(ii) Anderson University;
(iii) Bethel College;
(iv) Butler University;
(v) Calumet College of St. Joseph;
(vi) DePauw University;
(vii) Earlham College;
(viii) Franklin College;
(ix) Goshen College;
(x) Grace College and Seminary;
(xi) Hanover College;
(xii) Holy Cross College;
(xiii) Huntington University;
(xiv) Indiana Institute of Technology;
(xv) Indiana Wesleyan University;
(xvi) Manchester College;
(xvii) Marian University;
(xviii) Martin University;
(xix) Oakland City University;
(xx) Rose-Hulman Institute of Technology;
(xxi) Saint Joseph's College;
(xxii) Saint Mary-of-the-Woods College;
(xxiii) Saint Mary's College;
(xxiv) Taylor University;
(xxv) Trine University;
(xxvi) University of Evansville;
(xxvii) University of Indianapolis;
(xxviii) University of Notre Dame;
(xxix) University of Saint Francis;
(xxx) Valparaiso University; and
(xxxi) Wabash College;
or is accredited by the
(2) Ivy Tech Community College.
(3) A hospital that operates a nursing diploma program that is accredited by the Indiana state board of nursing.
(4) A postsecondary credit bearing proprietary educational institution that meets the following requirements:
(A) Is incorporated in Indiana, or is registered as a foreign corporation doing business in Indiana.
(B) Is fully accredited by and is in good standing with the
(C) Is accredited by and is in good standing with a regional or national accrediting agency.
(D) Offers a course of study that is at least eighteen (18) consecutive months in duration (or an equivalent to be determined by the
(E) Is certified
(b) "Approved postsecondary educational institution" for purposes of section 15 of this chapter, IC 21-12-6, IC 21-12-7, and IC 21-13-1-4, means the following:
(1) A state educational institution.
(2) A nonprofit college or university.
(3) A postsecondary credit bearing proprietary educational institution that is accredited by an accrediting agency recognized by the United States Department of Education.
(1) required textbooks, supplies, or equipment;
(2) any other material required by the approved postsecondary educational institution in order for a scholarship recipient to participate in a particular class, seminar, laboratory, or other type of instruction; or
(3) other items or services approved by the
that are not included in educational costs.
proprietary educational institution" has the meaning set forth in
IC 21-17-1-13. IC 21-18.5-2-12.
(1) IC 21-12-6, refers to a postsecondary educational institution that qualifies as an eligible institution under IC 21-12-6-4; and
(2) IC 21-12-8, refers to a postsecondary educational institution that:
(A) operates in Indiana;
(B) is either operated by the state or operated nonprofit;
(C) operates an organized program of postsecondary education leading to a technical certificate, nursing diploma, or associate or baccalaureate degree; and
(D) is accredited by:
(i) a recognized regional accrediting agency;
(ii) the
(iii) the Indiana state board of nursing; or
(iv) the state workforce innovation council under IC 22-4.1-21.
JULY 1, 2012]: Sec. 1. (a) An applicant is eligible for a first year
higher education award under this chapter if the student meets the
following requirements:
(1) The applicant is a resident of Indiana, as defined by the
commission.
(2) The applicant:
(A) has successfully completed the program of instruction at
an approved secondary school;
(B) has been granted a:
(i) high school equivalency certificate before July 1, 1995;
or
(ii) state of Indiana general educational development (GED)
diploma under IC 20-10.1-12.1 (before its repeal),
IC 20-20-6 (before its repeal), or IC 22-4.1-18; or
(C) is a student in good standing at an approved secondary
school and is engaged in a program that in due course will be
completed by the end of the current academic year.
(3) The financial resources reasonably available to the applicant,
as defined by the commission, are such that, in the absence of a
higher education award under this chapter, the applicant would be
deterred from completing the applicant's education at the
approved postsecondary educational institution that the applicant
has selected and that has accepted the applicant. In determining
the financial resources reasonably available to an applicant to
whom IC 21-11-7 IC 21-18.5-4-8 applies, the commission must
consider the financial resources of the applicant's legal parent.
(4) The applicant will use the award initially at that approved
postsecondary educational institution.
(5) If the student is already enrolled in an approved postsecondary
educational institution, the applicant must be a full-time student
and be making satisfactory progress, as determined by the
commission, toward a first baccalaureate degree.
(6) The student declares, in writing, a specific educational
objective or course of study and enrolls in:
(A) courses that apply toward the requirements for completion
of that objective or course of study; or
(B) courses designed to help the student develop the basic
skills that the student needs to successfully achieve that
objective or continue in that course of study.
(b) This subsection applies to an individual who:
(1) meets the requirements set forth in subsection (a); and
(2) before the date that eligibility is determined by the
commission, has been placed by or with the consent of the
department of child services, by a court order, or by a licensed
child placing agency in:
(A) a foster family home;
(B) the home of a relative or other unlicensed caretaker;
(C) a child caring institution; or
(D) a group home.
The commission shall consider an individual to whom this subsection
applies as a full-need student under the commission's rules when
determining the eligibility of the individual to receive financial aid
administered by the commission under this chapter.
(1) participates in:
(A) a nursing diploma program that is accredited by the Indiana state board of nursing and operated by a hospital;
(B) a technical certificate or associate degree program at Ivy Tech Community College; or
(C) an associate degree program at a postsecondary credit bearing proprietary educational institution that qualifies as an approved postsecondary educational institution; and
(2) meets the requirements in sections 1 and 2 of this chapter for a first year higher education award except the requirement of satisfactory progress toward a first baccalaureate degree;
is eligible to receive a state higher education award under this chapter. However, the student must make satisfactory progress toward obtaining the diploma, technical certificate, or associate degree to remain eligible for the award.
(b) The maximum amount of a grant that may be offered to an eligible student in a program at a postsecondary credit bearing proprietary educational institution is equal to the maximum amount of an award the student could receive under this chapter if the student were enrolled at Ivy Tech Community College.
SECTION 253, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 2. A person is eligible for a freedom
of choice grant if:
(1) the person is qualified for a higher education award under the
terms of IC 21-12-3-1, IC 21-12-3-2, and IC 21-12-3-3 or
IC 21-12-3-4 and IC 21-12-3-5, even if lack of funds prevents the
award or grant;
(2) the person has a financial need that exceeds the award, as
determined in accordance with:
(A) this chapter, IC 21-11, IC 21-18.5-4, IC 21-12-2, and
IC 21-12-3; and
(B) the rules of the commission; and
(3) the person will attend an approved postsecondary educational
institution that:
(A) either:
(i) operates in Indiana, provides an organized two (2) year or
longer program of collegiate grade directly creditable toward
a baccalaureate degree, is operated by a nonprofit entity, and
is accredited by a recognized regional accrediting agency or
the commission on proprietary education board for
proprietary education under IC 21-18.5-6; or
(ii) is a hospital that operates a nursing diploma program
that is accredited by the Indiana state board of nursing; and
(B) is operated privately and not administered or controlled by
any state agency or entity.
(1) Be an approved postsecondary educational institution.
(2) Be accredited by an agency that is recognized by the Secretary of the United States Department of Education.
(3) Operate an organized program of postsecondary education
leading to an associate or a baccalaureate degree on a campus
located in Indiana.
(4) Be approved by the commission:
(A) under rules adopted under IC 4-22-2; and
(B) in consultation with the commission on board for
proprietary education established by IC 21-18.5-5-1, if
appropriate.
(1) Be a resident of Indiana.
(2) Be:
(A) enrolled in grade 7 or 8 at a:
(i) public school; or
(ii) nonpublic school that is accredited either by the state board of education or by a national or regional accrediting agency whose accreditation is accepted as a school improvement plan under IC 20-31-4-2; or
(B) otherwise qualified under the rules of the commission that are adopted under
(3) Be a member of a household with an annual income of not more than the amount required for the individual to qualify for free or reduced priced lunches under the national school lunch program, as determined for the immediately preceding taxable year for the household.
(4) Agree, in writing, together with the student's custodial parents or guardian, that the student will:
(A) graduate from a secondary school located in Indiana that meets the admission criteria of an eligible institution;
(B) not illegally use controlled substances (as defined in IC 35-48-1-9);
(C) not commit a crime or an infraction described in IC 9-30-5;
(D) not commit any other crime or delinquent act (as described in IC 31-37-1-2 or IC 31-37-2-2 through IC 31-37-2-5 (or IC 31-6-4-1(a)(1) through IC 31-6-4-1(a)(5) before their repeal));
(E) timely apply, when the eligible student is a senior in high school:
(i) for admission to an eligible institution; and
(ii) for any federal and state student financial assistance available to the eligible student to attend an eligible institution;
(F) achieve a cumulative grade point average upon graduation of:
(i) at least 2.0, if the student graduates from high school before July 1, 2014; and
(ii) at least 2.5, if the student graduates from high school after June 30, 2014;
on a 4.0 grading scale (or its equivalent if another grading scale is used) for courses taken during grades 9, 10, 11, and 12; and
(G) participate in an academic success program required under the rules adopted by the commission,
(b) A student is also qualified to participate in the program if the student:
(1) before or during grade 7 or grade 8, is placed by or with the consent of the department of child services, by a court order, or by a child placing agency in:
(A) a foster family home;
(B) the home of a relative or other unlicensed caretaker;
(C) a child caring institution; or
(D) a group home;
(2) agrees in writing, together with the student's caseworker (as defined in IC 31-9-2-11), to the conditions set forth in subsection (a)(4); and
(3) except as provided in subdivision (2), otherwise meets the requirements of subsection (a).
(c) The commission may require that an applicant apply electronically to participate in the program using an online Internet application on the commission's web site.
(1) Be an eligible student who qualified to participate in the program under section 5 of this chapter.
(2) Be a resident of Indiana.
(3) Be a graduate from a secondary school located in Indiana that meets the admission criteria of an eligible institution and have achieved a cumulative grade point average in high school of:
(A) at least 2.0 on a 4.0 grading scale, if the student is expected to graduate from high school before July 1, 2014; and
(B) at least 2.5 on a 4.0 grading scale, if the student is expected to graduate from high school after June 30, 2014.
(4) Have applied to attend and be accepted to attend as a full-time student an eligible institution.
(5) Certify in writing that the student has:
(A) not illegally used controlled substances (as defined in IC 35-48-1-9);
(B) not illegally consumed alcoholic beverages;
(C) not committed any other crime or a delinquent act (as described in IC 31-37-1-2 or IC 31-37-2-2 through IC 31-37-2-5 (or IC 31-6-4-1(a)(1) through IC 31-6-4-1(a)(5) before their repeal));
(D) timely filed an application for other types of financial assistance available to the student from the state or federal government; and
(E)
(6) Submit to the commission all the information and evidence required by the commission to determine eligibility as a scholarship applicant.
(7) This subdivision applies only to applicants who initially enroll in the program under section 5 of this chapter or IC 21-12-6.5-2 after June 30, 2011. For purposes of this chapter, applicants who are enrolled in the program before July 1, 2011, will not have an income or financial resources test applied to them when they subsequently apply for a scholarship. Have a lack of financial resources reasonably available to the applicant, as defined by the commission, that, in the absence of an award under this chapter, would deter the scholarship applicant from completing the applicant's education at the approved postsecondary educational institution that the applicant has selected and that has accepted the applicant.
(8) Meet any other minimum criteria established by the commission.
(b) This section applies to an individual who graduates from high school after December 31, 2011. To be eligible for a scholarship under
this section, a student must initially attend the eligible institution
described in subdivision subsection (a)(4) not later than the fall
semester (or its equivalent, as determine determined by the
commission) in the year immediately following the year in which the
student graduates from high school.
(b) The amount of a scholarship is equal to the lowest of the following amounts:
(1) If the scholarship applicant attends an eligible institution that is a state educational institution and:
(A) receives no other financial assistance specifically designated for educational costs, a full tuition scholarship to the state educational institution; or
(B) receives other financial assistance specifically designated for educational costs, the balance required to attend the state educational institution, not to exceed the amount described in clause (A).
(2) If the scholarship applicant attends an eligible institution that is private and:
(A) receives no other financial assistance specifically designated for educational costs, an average of the full tuition scholarship amounts of all state educational institutions not including Ivy Tech Community College; or
(B) receives other financial assistance specifically designated for educational costs, the balance required to attend the college or university not to exceed the amount described in clause (A).
(3) If the scholarship applicant attends an eligible institution that is a postsecondary credit bearing proprietary educational institution and:
(A) receives no other financial assistance specifically designated for educational costs, the lesser of:
(i) the full tuition scholarship amounts of Ivy Tech Community College; or
(ii) the actual tuition and regularly assessed fees of the eligible institution; or
(B) receives other financial assistance specifically designated for educational costs, the balance required to attend the eligible institution, not to exceed the amount described in
clause (A).
(b) A scholarship applicant shall be awarded the following amount as adjusted under subsections (c) and (d):
(1) If the scholarship applicant attends an approved postsecondary educational institution that is a state educational institution, the full educational costs that the scholarship applicant would otherwise be required to pay at the eligible institution.
(2) If the scholarship applicant attends an approved postsecondary educational institution that is private, the lesser of the educational costs that the scholarship applicant would otherwise be required to pay at the private eligible institution, or the average of the educational costs of all state educational institutions, not including Ivy Tech Community College.
(3) If the scholarship applicant attends an approved postsecondary educational institution that is a postsecondary credit bearing proprietary educational institution, the lesser of the educational costs that the scholarship applicant would otherwise be required to pay at the postsecondary credit bearing proprietary educational institution or the educational costs of Ivy Tech Community College.
(c) The amount of an award under subsection (b) shall be reduced by:
(1) the amount of the Frank O'Bannon grant awarded to the scholarship applicant; plus
(2) an additional amount based on the expected family contribution, if necessary, as determined by the commission, to provide scholarships within the available appropriation.
(d) The total of all tuition scholarships awarded under this section in a state fiscal year may not exceed the amount available for distribution from the fund for scholarships under this chapter. If the total amount to be distributed from the fund in a state fiscal year exceeds the amount available for distribution, the amount to be distributed to each eligible applicant shall be proportionately reduced
so that the total reductions equal the amount of the excess based on the
relative financial need of each eligible applicant.
(1) The agreements under section 5 of this chapter.
(2) The certifications under section 6 of this chapter.
(3) A comprehensive list of all eligible students.
(b) The commission shall have access to the information maintained under this section.
(c) The commission, the Indiana college placement and assessment center,
(b) A caseworker (as defined in IC 31-9-2-11) shall provide each student to whom the caseworker is assigned information concerning the program at the appropriate time for the student to receive the information, shall explain the program to the student, and shall provide the student with information concerning:
(1) Pell grants;
(2) Chafee grants;
(3) federal supplemental grants;
(4) the Free Application for Federal Student Aid;
(5) individual development accounts (as described under IC 4-4-28); and
(6) the
(c) A student who receives information under this section shall sign a written acknowledgment that the student received the information. The written acknowledgment must be placed in the student's case file.
(1) is receiving foster care;
(2) is in grades 9 through 12; and
(3) is a resident of Indiana as determined under
at the time the individual applies for the twenty-first century scholars program under IC 21-12-6.
(1) an insurance program; or
(2) a business program with an emphasis on insurance;
in proportion to the number of insurance students enrolled at each state educational institution.
(1) are allocated to a state educational institution under
(2) are not used for scholarships under this chapter;
shall be returned to the commission for reallocation by the commission to any other eligible state educational institution in need of additional funds.
the appropriate current and past student unit record data that is
necessary to adequately administer and evaluate the effectiveness of
the award and scholarship programs provided under this article. The
commission shall use the data for its student information system.
(b) Before the academic year beginning July 1, 2012, and before
each academic year thereafter, the commission, for higher education,
in consultation with Independent Colleges of Indiana, shall collect
other appropriate student data on all students attending public, private,
and proprietary institutions to allow the commission for higher
education to develop, update, and implement a long range plan for
postsecondary education.
(1) the number of minority students enrolled at each eligible institution; and
(2) the number of individuals who are:
(A) enrolled at each eligible institution; and
(B) pursuing a course of study that would enable the student, upon graduation, to be:
(i) licensed to teach special education in an accredited school; or
(ii) licensed to practice occupational therapy or physical therapy in an accredited school, in a vocational rehabilitation center under IC 12-12-1-4.1(a)(1), or in a community mental retardation or other developmental disabilities center under IC 12-29 as part of the special education program.
SECTION 234, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 12.5. (a) This section applies to
tuition and mandatory fees that a board of trustees of a state
educational institution votes to increase under section 7 of this chapter.
(b) Not later than thirty (30) days after the enactment of a state
budget, the commission for higher education shall recommend
nonbinding tuition and mandatory fee increase targets for each state
educational institution.
(c) The state educational institution shall submit a report to the state
budget committee concerning the financial and budgetary factors
considered by the board of trustees in determining the amount of the
increase.
(d) The state budget committee shall review the targets
recommended under subsection (b) and reports received under
subsection (c) and may request that a state educational institution
appear at a public meeting of the state budget committee concerning
the report.
(b) The report must include the following information:
(1) The number of senior citizens who qualified for a tuition exemption.
(2) The courses in which the senior citizens enrolled.
(3) The number of semester hours (or its equivalent) taken by senior citizens under this chapter.
(4) Any other pertinent information required by the commission.
costs. in consultation with the commission.
2012]. Sec. 3. "Agent" means a person who:
(1) enrolls or seeks to enroll a resident of Indiana through:
(A) personal contact;
(B) telephone;
(C) advertisement;
(D) letter; or
(E) publications;
in a course offered by a postsecondary proprietary educational
institution; or
(2) otherwise holds the person out to the residents of Indiana as
representing a postsecondary proprietary educational institution.
education.
(3) An elementary or secondary school attended by students in
kindergarten or grades 1 through 12, supported in whole or in part
by private tuition payments.
(4) Any educational institution or educational training that:
(A) is maintained or given by an employer or a group of
employers, without charge, for employees or for individuals
the employer anticipates employing;
(B) is maintained or given by a labor organization, without
charge, for its members or apprentices;
(C) offers exclusively instruction that is clearly
self-improvement, motivational, or avocational in intent
(including instruction in dance, music, self-defense, and
private tutoring); or
(D) is a Montessori or nursery school.
(5) A privately endowed two (2) or four (4) year degree granting
institution, regionally accredited, whose principal campus is
located in Indiana.
(1) Plan for and coordinate Indiana's state supported system of postsecondary education.
(2) Review appropriation requests of state educational institutions.
(3) Make recommendations to the governor, budget agency, or the general assembly concerning postsecondary education.
(4) Perform other functions assigned by the governor or the general assembly, except those functions specifically assigned by law to the state workforce innovation council under IC 22-4.1-19.
(5) Administer state financial aid programs under IC 21-18.5-4.
(6) Provide staff and office space for the board for proprietary education established by IC 21-18.5-5-1.
1, 2012]:
ARTICLE 18.5. ADMINISTRATION OF HIGHER
EDUCATION FINANCIAL AID AND POSTSECONDARY
CREDIT BEARING PROPRIETARY EDUCATIONAL
INSTITUTION ACCREDITATION
Chapter 1. General Provisions
Sec. 1. (a) As used in this section, "contract" refers to a contract
or guarantee entered into by the state student assistance
commission (before its abolishment on July 1, 2012) or by the state
student assistance commission (as it existed before the enactment
of P.L.128-1990).
(b) After June 30, 2012, a contract entered into by the state
student assistance commission (before its abolishment on July 1,
2012) or by the state student assistance commission (as it existed
before the enactment of P.L.128-1990) is a contract of the
commission for higher education established by IC 21-18-2-1.
(c) The:
(1) amendments made by P.L.128-1990; and
(2) repeal of IC 21-11 and addition of this article by legislation
enacted during the 2012 session of the general assembly;
do not affect the rights, duties, or obligations of the commission for
higher education established by IC 21-18-2-1 or a person who
before July 1, 2012, had a contract with the state student assistance
commission (before its abolishment on July 1, 2012) or with the
state student assistance commission (as it existed before the
enactment of P.L.128-1990).
(d) A person or the commission for higher education established
by IC 21-18-2-1 may enforce a right or compel performance of a
duty with respect to a contract as if:
(1) P.L.128-1990; and
(2) the repeal of IC 21-11 and conforming amendments made
to IC 21-7 through IC 21-17 by legislation enacted during the
2012 session of the general assembly;
had not been enacted.
Sec. 2. (a) The state student assistance commission established
by IC 21-11-2-1 (before its repeal) is abolished.
(b) The following are transferred on July 1, 2012, from the state
student assistance commission to the commission for higher
education established by IC 21-18-2-1:
(1) All real and personal property of the state student
assistance commission.
(2) All powers, duties, assets, and liabilities of the state student
assistance commission.
(3) All appropriations to the state student assistance
commission.
(c) All rules or policies that were adopted by the state student
assistance commission before July 1, 2012, shall be treated as
though the rules were adopted by the commission for higher
education established by IC 21-18-2-1 until the commission for
higher education adopts new rules or policies.
(d) After June 30, 2012, a reference to the state student
assistance commission in a statute or rule shall be treated as a
reference to the commission for higher education established by
IC 21-18-2-1.
Sec. 3. After June 30, 2012, any reference to the Indiana
commission for postsecondary proprietary education or the
Indiana commission on proprietary education in any statute or rule
shall be treated as a reference to the:
(1) board for proprietary education established by
IC 21-18.5-5-1 if the reference pertains to a postsecondary
credit bearing proprietary educational institution; or
(2) state workforce innovation council established by
IC 22-4-18.1-3 if the reference pertains to a postsecondary
proprietary educational institution (as defined in
IC 22-4.1-21-9).
Sec. 4. (a) Changes made by P.L.218-1987 do not affect:
(1) rights or liabilities accrued;
(2) penalties incurred;
(3) crimes committed; or
(4) proceedings begun;
before July 1, 1987. These rights, liabilities, penalties, crimes, and
proceedings continue and shall be imposed and enforced under
prior law as if P.L.218-1987 had not been enacted.
(b) The abolishment of the Indiana commission on proprietary
education on July 1, 2012, by legislation enacted during the 2012
session of the general assembly does not affect:
(1) rights or liabilities accrued;
(2) penalties incurred;
(3) crimes committed; or
(4) proceedings begun;
before July 1, 2012, that pertain to a postsecondary credit bearing
proprietary educational institution. These rights, liabilities,
penalties, crimes, and proceedings continue and shall be imposed
and enforced by the board for proprietary education established by
IC 21-18.5-5-1.
(c) The abolishment of the Indiana commission on proprietary
education on July 1, 2012, by legislation enacted during the 2012
session of the general assembly does not affect:
(1) rights or liabilities accrued;
(2) penalties incurred;
(3) crimes committed; or
(4) proceedings begun;
before July 1, 2012, that pertain to a postsecondary proprietary
educational institution (as defined in IC 22-4.1-21-9). These rights,
liabilities, penalties, crimes, and proceedings continue and shall be
imposed and enforced by the state workforce innovation council
established under IC 22-4-18.1-3.
Sec. 5. (a) The Indiana commission on proprietary education is
abolished on July 1, 2012.
(b) Unless otherwise specified in a memorandum of
understanding described in subsection (e), the following are
transferred on July 1, 2012, from the Indiana commission on
proprietary education to the commission for higher education
established by IC 21-18-2-1:
(1) All real and personal property of the Indiana commission
on proprietary education.
(2) All assets and liabilities of the Indiana commission on
proprietary education.
(3) All appropriations to the Indiana commission on
proprietary education.
(c) All powers and duties of the Indiana commission on
proprietary education before its abolishment pertaining to the
accreditation of a postsecondary credit bearing proprietary
educational institution are transferred to the board for proprietary
education established by IC 21-18.5-5-1.
(d) All powers and duties of the Indiana commission on
proprietary education before its abolishment pertaining to the
accreditation of a postsecondary proprietary educational
institution (as defined in IC 22-4.1-21-9) are transferred to the
state workforce innovation council established by IC 22-4-18.1-3.
(e) The commission for higher education established by
IC 21-18-2-1 may enter into a memorandum of understanding with
the state workforce innovation council established by
IC 22-4-18.1-3 to implement the transition of the responsibilities
and obligations of the Indiana commission on proprietary
education before its abolishment to the commission for higher
education and the state workforce innovation council.
(f) Rules that were adopted by the Indiana commission on
proprietary education before July 1, 2012, shall be treated as
though the rules were adopted by the state workforce innovation
council established by IC 22-4-18.1-3 until the state workforce
innovation council adopts rules under IC 4-22-2 to implement
IC 22-4.1-21.
(g) An accreditation granted or a permit issued under
IC 21-17-3 by the Indiana commission on proprietary education
before July 1, 2012, shall be treated after June 30, 2012, as an
accreditation granted or a permit issued by the:
(1) board for proprietary education established by
IC 21-18.5-5-1 if the accreditation pertains to a postsecondary
credit bearing proprietary educational institution (as defined
in IC 21-18.5-2-12); or
(2) state workforce innovation council if the accreditation
pertains to a postsecondary proprietary educational
institution (as defined in IC 22-4.1-21-9).
(h) Proceedings pending before the Indiana commission on
proprietary education on July 1, 2012, shall be transferred from
the Indiana commission on proprietary education to:
(1) the board for proprietary education established by
IC 21-18.5-5-1 for a proceeding pertaining to a postsecondary
credit bearing proprietary educational institution (as defined
in IC 21-18.5-2-12); or
(2) the state workforce innovation council if the proceeding
pertains to a postsecondary proprietary educational
institution (as defined in IC 22-4.1-21-9).
Chapter 2. Definitions
Sec. 1. Unless otherwise provided, the definitions in this chapter
apply throughout this article.
Sec. 2. "Accreditation", for purposes of IC 21-18.5-6, means
certification of a status of approval or authorization by the board
for proprietary education to conduct business as a postsecondary
credit bearing proprietary educational institution.
Sec. 3. "Agent", for purposes of IC 21-18.5-6, means a person
who:
(1) enrolls or seeks to enroll a resident of Indiana through:
(A) personal contact;
(B) telephone;
(C) advertisement;
(D) letter; or
(E) publications;
in a course offered by a postsecondary credit bearing proprietary educational institution; or
(2) otherwise holds the person out to the residents of Indiana as representing a postsecondary credit bearing proprietary educational institution.
Sec. 4. "Agent's permit", for purposes of IC 21-18.5-6, means a nontransferable written authorization issued to a person by the board for proprietary education to solicit a resident of Indiana to enroll in a course offered or maintained by a postsecondary credit bearing proprietary educational institution.
Sec. 5. "Application", for purposes of IC 21-18.5-6, means a written request for accreditation or an agent's permit on forms supplied by the board for proprietary education.
Sec. 6. "Caretaker relative" means a relative by blood or law who lives with a minor and exercises parental responsibility, care, and control over the minor in the absence of the minor's parent.
Sec. 7. "Commission" means the commission for higher education established by IC 21-18-2-1.
Sec. 8. "Course", for purposes of IC 21-18.5-6, means a plan or program of instruction or training, whether conducted in person, by mail, or by any other method.
Sec. 9. "Enrollment" means the establishment and maintenance of an individual's status as an undergraduate student in a postsecondary credit bearing proprietary educational institution.
Sec. 10. "Higher education award" means a monetary award.
Sec. 11. "Person", for purposes of IC 21-18.5-6, means an individual, a partnership, a limited liability company, an association, a corporation, a joint venture, a trust, a receiver, or a trustee in bankruptcy.
Sec. 12. (a) "Postsecondary credit bearing proprietary educational institution" means a degree granting and credit bearing institution that provides instructional or educational services or training in a technical, professional, mechanical, business, or industrial occupation, and is accredited by an accrediting agency recognized by the United States Department of Education or is seeking and progressing toward accreditation by an accrediting agency recognized by the United States Department of Education.
(b) The term does not include the following:
(1) An Indiana state educational institution or another Indiana educational institution established by law and
financed in whole or in part by public funds.
(2) A postsecondary proprietary educational institution
approved or regulated by any other state regulatory board,
agency, or commission other than the board for proprietary
education.
(3) An elementary or secondary school attended by students
in kindergarten or grades 1 through 12 and supported in
whole or in part by private tuition payments.
(4) Any educational institution or educational training that:
(A) is maintained or given by an employer or a group of
employers, without charge, for employees or for
individuals the employer anticipates employing;
(B) is maintained or given by a labor organization, without
charge, for its members or apprentices;
(C) offers exclusively instruction that is clearly
self-improvement, motivational, or avocational in intent
(including instruction in dance, music, or self-defense, and
private tutoring); or
(D) is a Montessori or nursery school.
(5) A privately endowed two (2) or four (4) year degree
granting institution that is regionally accredited and whose
principal campus is located in Indiana.
Chapter 3. State Financial Aid
Sec. 1. The commission, under IC 21-18-6-1, shall administer the
following:
(1) This article.
(2) IC 21-12.
(3) IC 21-13.
(4) IC 21-14.
(5) IC 21-16.
Chapter 4. Administration of Awards
Sec. 1. The purposes of this chapter are:
(1) to increase the opportunity to receive a higher education
for every person who resides in Indiana and who, though
being highly qualified and desiring to receive a higher
education, is deterred by financial considerations; and
(2) to accomplish the goal described in subdivision (1) by
establishing a system of state higher education awards that
will assist individuals in selecting and attending a qualified
public or private postsecondary educational institution or a
postsecondary credit bearing proprietary educational
institution.
Sec. 2. The commission shall exercise its functions under this chapter without regard to an applicant's race, creed, sex, color, national origin, or ancestry.
Sec. 3. For purposes of administering this chapter, the commission shall do the following:
(1) Prepare and supervise the issuance of public information concerning this chapter, IC 21-12-2, IC 21-12-3, IC 21-12-4, and IC 21-12-5.
(2) Prescribe the form and regulate the submission of applications for higher education awards and the commission's programs.
(3) Conduct conferences and interviews with applicants as appropriate.
(4) Determine the eligibility of applicants.
(5) Select qualified applicants.
(6) Determine annually the maximum higher education award (IC 21-12-3) and freedom of choice award (IC 21-12-4), subject to approval by the budget agency with review by the budget committee.
(7) Determine the respective amounts of, and award, the appropriate higher education awards, grants, and scholarships.
(8) Determine eligibility for, and award, annual renewals of higher education awards, grants, and scholarships.
(9) Act as the designated state agency for participation in any federal program for reinsurance of student loans.
(10) Receive federal funds made available to the commission for awards, grants, and scholarships, and disburse these funds in the manner prescribed by federal law.
(11) One (1) time every year, submit a report to the legislative council that provides data and statistical information regarding the number of individuals who received assistance under IC 21-12-6 and IC 21-12-6.5. The report made to the legislative council must be in an electronic format under IC 5-14-6.
(12) One (1) time every year, submit a report to the budget committee that provides data and statistical information regarding the number of individuals who received assistance under IC 21-12, IC 21-13, and IC 21-14.
Sec. 4. For purposes of administering this chapter, the commission may do the following:
(1) Accept gifts, grants, devises, or bequests to provide grants,
awards, scholarships, loans, or other forms of financial aid to
students attending approved postsecondary educational
institutions.
(2) Enter into contracts, subject to IC 4-13-2, that the
commission determines are necessary to carry out the
commission's functions.
(3) Provide administrative or technical assistance to other
governmental or nongovernmental entities if the provision of
this assistance will increase the number and value of grants,
awards, scholarships, or loans available to students attending
approved postsecondary educational institutions.
(4) Sue and be sued in the name of the commission.
Sec. 5. For purposes of administering this chapter, if the
commission receives an offer of a gift, grant, devise, or bequest, the
commission may accept a stipulation on the use of the donated
funds. In this case, IC 21-12-3-11 (higher education award) and
IC 21-12-4-4 (freedom of choice grant) do not apply. Before
accepting a gift, grant, devise, or bequest, the commission shall
determine that the purposes for which the donor proposes to
provide funds are:
(1) lawful;
(2) in the state's best interests; and
(3) generally consistent with the commission's programs and
purposes.
If the commission agrees to a stipulation on the use of donated
funds, the commission and the donor, subject to approval by the
budget agency and the governor or the governor's designee, shall
execute an agreement.
Sec. 6. (a) This section applies if the commission agrees to
provide administrative or technical assistance to other
governmental or nongovernmental entities to increase the number
and value of grants, awards, scholarships, or loans available to
students attending approved postsecondary educational
institutions.
(b) The commission and the party to whom the assistance is to
be provided shall execute an agreement specifying:
(1) the assistance that is to be provided; and
(2) the charges, if any, that are to be assessed by the
commission for providing the assistance.
The commission may waive charges for administrative or technical
assistance under this section if the commission determines that a
waiver is in the best interest of the state. An agreement to provide
assistance must be approved by the budget agency and the
governor or the governor's designee.
Sec. 7. The commission may, subject to written advance notice,
inspect and audit the records of a postsecondary credit bearing
proprietary educational institution concerning a student grant
awarded under IC 21-12 or IC 21-13.
Sec. 8. (a) This section applies to a person:
(1) who is a student;
(2) who is a graduate of a high school located in Indiana or a
recipient of the state of Indiana general educational
development (GED) diploma under IC 20-10.1-12.1 (before its
repeal), IC 20-20-6 (before its repeal), or IC 22-4.1-18;
(3) who, on the date that eligibility is determined by the
commission, has resided in Indiana with a caretaker relative
who has been a resident of Indiana for at least four (4) years;
and
(4) whose legal parent:
(A) is currently; and
(B) has been for at least three (3) consecutive years;
a resident of Indiana.
(b) In determining the eligibility of a person to receive financial
aid administered by the commission under any law, the commission
shall use the residence or domicile of the person's caretaker
relative to determine the person's residence or domicile.
Sec. 9. The commission shall adopt rules under IC 4-22-2:
(1) to develop standards that govern the denial of assistance
to higher education award applicants and recipients under
IC 21-12-3-13;
(2) to implement IC 21-12-6, including:
(A) rules regarding the establishment of appeals
procedures for individuals who become disqualified from
the program under IC 21-12-6-9;
(B) notwithstanding IC 21-12-6-5, rules that may include
students who are in grades other than grade 6, 7, or 8 as
eligible students; and
(C) rules that allow a student described in IC 21-12-6-5(b)
to become an eligible student while the student is in high
school, if the student agrees to comply with the
requirements set forth in IC 21-12-6-5(a)(4)(B) through
IC 21-12-6-5(a)(4)(D) for not less than six (6) months after
graduating from high school;
(3) to implement IC 21-13-2, including rules governing the
enforcement of the agreements under IC 21-13-2-5;
(4) that are necessary to carry out IC 21-13-3, including rules
governing the enforcement of the agreements made under
IC 21-13-3-5; and
(5) to implement:
(A) IC 21-12-7; and
(B) IC 21-14-5.
Sec. 10. The commission may:
(1) make rules necessary to carry out its functions under this
chapter;
(2) appoint advisory boards it considers necessary to carry
out its responsibilities under this chapter;
(3) adopt rules under IC 4-22-2 to implement IC 21-14-5; and
(4) adopt rules under IC 4-22-2 and internal policy to
effectuate the purposes of IC 21-16-4.
Sec. 11. The commission may cooperate in developing training
programs concerning grant program requirements with the:
(1) board for proprietary education; or
(2) state workforce innovation council.
Chapter 5. Board for Proprietary Education
Sec. 1. The board for proprietary education is established.
Sec. 2. (a) The board for proprietary education consists of the
following seven (7) members:
(1) The state superintendent or the superintendent's designee.
(2) The executive officer of the commission for higher
education or the executive officer's designee.
(3) Five (5) members appointed by the governor.
(b) The members appointed by the governor under subsection
(a) serve for a term of four (4) years.
(c) Not more than three (3) of the members appointed by the
governor may be members of the same political party.
(d) Of the five (5) members appointed by the governor:
(1) one (1) must have been engaged for a period of at least five
(5) years immediately preceding appointment in an executive
or a managerial position in a postsecondary proprietary
educational institution subject to IC 21-18.5-6;
(2) one (1) must have been engaged in administering or
managing an industrial employee training program for a
period of at least five (5) years immediately preceding
appointment; and
(3) three (3) must be representatives of the public at large who
are not representatives of the types of postsecondary credit
bearing proprietary educational institutions to be accredited.
For purposes of subdivision (3), an elected or appointed state or
local official or a member of a private or public school may not be
appointed as a representative of the public at large.
(e) An appointment to fill a vacancy occurring on the board for
proprietary education is for the unexpired term.
Sec. 3. (a) A member of the board for proprietary education
who is not a state employee is entitled to the minimum salary per
diem provided by IC 4-10-11-2.1(b). The member is also entitled to
reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
(b) Each member of the board for proprietary education who is
a state employee is entitled to reimbursement for traveling
expenses as provided under IC 4-13-1-4 and other expenses
actually incurred in connection with the member's duties as
provided in the state policies and procedures established by the
Indiana department of administration and approved by the budget
agency.
Sec. 4. (a) The board for proprietary education may select
officers from the board for proprietary education's membership as
the board for proprietary education considers necessary.
(b) The board for proprietary education may adopt reasonable
rules under IC 4-22-2 to implement this chapter and IC 21-18.5-6.
(c) The board for proprietary education:
(1) may meet as necessary upon call of the chairperson; and
(2) shall meet at least four (4) times a year.
Sec. 5. An associate commissioner of the commission (as defined
in IC 21-18.5-2-7) shall serve as the executive director of the board
for proprietary education.
Chapter 6. Postsecondary Credit Bearing Proprietary
Educational Institution Accreditation
Sec. 1. The general assembly recognizes that the private school
is an essential part of the educational system. It is the purpose of
this chapter to protect students, educational institutions, the
general public, and honest and ethical operators of private schools
from dishonest and unethical practices.
Sec. 2. A person may not do business as a postsecondary credit
bearing proprietary educational institution in Indiana without
having obtained accreditation under this chapter.
Sec. 3. Applications for accreditation under this chapter must be filed with the board for proprietary education and accompanied by an application fee of at least one hundred dollars ($100) for processing the application and evaluating the postsecondary credit bearing proprietary educational institution.
Sec. 4. An application for accreditation under this chapter must include at least the following information:
(1) The name and address of the postsecondary credit bearing proprietary educational institution and the institution's officers.
(2) The places where the courses are to be provided.
(3) The types of courses to be offered, the form of instruction to be followed with the class, shop, or laboratory, and the hours required for each curriculum.
(4) The form of certificate, diploma, or degree to be awarded.
(5) A statement of the postsecondary credit bearing proprietary educational institution's finances.
(6) A description of the postsecondary credit bearing proprietary educational institution's physical facilities, including classrooms, laboratories, library, machinery, and equipment.
(7) An explicit statement of policy with reference to:
(A) solicitation of students;
(B) payment and amount of student fees; and
(C) conditions under which students are entitled to a refund in part or in full of fees paid, including a statement concerning the existence of the career college student assurance fund established under section 6 of this chapter.
(8) Provisions for liability insurance of students.
(9) Maximum student-teacher ratio to be maintained.
(10) Minimum requirements for instructional staff.
Sec. 5. The board for proprietary education shall require each postsecondary credit bearing proprietary educational institution to include in each curriculum catalog and promotional brochure the following:
(1) A statement indicating that the postsecondary credit bearing proprietary educational institution is regulated by the board for proprietary education under this chapter.
(2) The board for proprietary education's mailing address and telephone number.
Sec. 6. (a) The career college student assurance fund is established to provide indemnification to a student or an enrollee
of a postsecondary credit bearing proprietary educational
institution who suffers loss or damage as a result of:
(1) the failure or neglect of the postsecondary credit bearing
proprietary educational institution to faithfully perform all
agreements, express or otherwise, with the student, enrollee,
one (1) or both of the parents of the student or enrollee, or a
guardian of the student or enrollee as represented by the
application for the institution's accreditation and the
materials submitted in support of that application;
(2) the failure or neglect of the postsecondary credit bearing
proprietary educational institution to maintain and operate a
course or courses of instruction or study in compliance with
the standards of this chapter; or
(3) an agent's misrepresentation in procuring the student's
enrollment.
(b) The board for proprietary education shall administer the
fund.
(c) The expenses of administering the fund shall be paid from
money in the fund.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund but remains available to be used for
providing money for reimbursements allowed under this chapter.
(f) Upon the fund acquiring fifty thousand dollars ($50,000), the
balance in the fund must not become less than fifty thousand
dollars ($50,000). If:
(1) a claim against the fund is filed that would, if paid in full,
require the balance of the fund to become less than fifty
thousand dollars ($50,000); and
(2) the board for proprietary education determines that the
student is eligible for a reimbursement under the fund;
the board for proprietary education shall prorate the amount of
the reimbursement to ensure that the balance of the fund does not
become less than fifty thousand dollars ($50,000), and the student
is entitled to receive that balance of the student's claim from the
fund as money becomes available in the fund from contributions to
the fund required under this chapter.
(g) The board for proprietary education shall ensure that all
outstanding claim amounts described in subsection (f) are paid as
money in the fund becomes available in the chronological order of
the outstanding claims.
(h) A claim against the fund may not be construed to be a debt
of the state.
Sec. 7. (a) Except as otherwise provided in this section, each
postsecondary credit bearing proprietary educational institution
shall make quarterly contributions to the fund. The quarters begin
January 1, April 1, July 1, and October 1.
(b) For each quarter, each postsecondary credit bearing
proprietary educational institution shall make a contribution equal
to the STEP THREE amount derived under the following formula:
STEP ONE: Determine the total amount of tuition and fees
earned during the quarter.
STEP TWO: Multiply the STEP ONE amount by one-tenth of
one percent (0.1%).
STEP THREE: Add the STEP TWO amount and sixty dollars
($60).
(c) After June 30, 2012, upon the career college student
assurance fund achieving at least an initial balance of five hundred
thousand dollars ($500,000), a postsecondary credit bearing
proprietary educational institution that contributes to the career
college student assurance fund when the initial quarterly
contribution is required under this chapter after the fund's
establishment is not required to make contributions to the fund.
(d) The board for proprietary education shall determine the
number of quarterly contributions required for the career college
student assurance fund to initially accumulate five hundred
thousand dollars ($500,000).
(e) Except as provided in subsections (a), (b), and (f), a
postsecondary credit bearing proprietary educational institution
that begins making contributions to the career college student
assurance fund after the initial quarterly contribution as required
under this section shall make contributions to the fund for the same
number of quarters as determined by the board for proprietary
education under subsection (d).
(f) If, after a career college student assurance fund acquires five
hundred thousand dollars ($500,000), the balance in the fund
becomes less than two hundred fifty thousand dollars ($250,000),
all postsecondary credit bearing proprietary educational
institutions not required to make contributions to the career
college student assurance fund as described in subsection (c) or (e)
shall make contributions to the career college student assurance
fund for the number of quarters necessary for the fund to
accumulate five hundred thousand dollars ($500,000).
Sec. 8. (a) Upon receipt of an application for accreditation under
this chapter, the board for proprietary education shall make an
investigation to determine the accuracy of the statements in the
application to determine if the postsecondary credit bearing
proprietary educational institution meets the minimum standards
for accreditation.
(b) During the investigation under subsection (a), the board for
proprietary education may grant a temporary status of
accreditation. The temporary status of accreditation is sufficient to
meet the requirements of this chapter until a determination on
accreditation is made.
Sec. 9. The cost of performing a team onsite investigation for
purposes of section 8 of this chapter shall be paid by the applicant
postsecondary credit bearing proprietary educational institution.
However, the total cost of an inspection, including room, board,
and mileage that does not require travel outside Indiana, may not
exceed one thousand dollars ($1,000) for any one (1) postsecondary
credit bearing proprietary educational institution.
Sec. 10. (a) A postsecondary credit bearing proprietary
educational institution shall maintain at least the following records
for each student:
(1) The program in which the student enrolls.
(2) The length of the program.
(3) The date of the student's initial enrollment in the program.
(4) A transcript of the student's academic progress.
(5) The amount of the student's tuition and fees.
(6) A copy of the enrollment agreement.
(b) Upon the request of the board for proprietary education, a
postsecondary credit bearing proprietary educational institution
shall submit the records described in subsection (a) to the board
for proprietary education.
(c) If a postsecondary credit bearing proprietary educational
institution ceases operation, the postsecondary credit bearing
proprietary educational institution shall submit the records
described in subsection (a) to the commission on public records not
later than thirty (30) days after the institution ceases to operate.
Sec. 11. Full accreditation under this chapter may not be issued
unless and until the board for proprietary education finds that the
postsecondary credit bearing proprietary educational institution
meets minimum standards that are appropriate to that type or
class of postsecondary credit bearing proprietary educational
institution, including the following minimum standards:
(1) The postsecondary credit bearing proprietary educational
institution has a sound financial structure with sufficient
resources for continued support.
(2) The postsecondary credit bearing proprietary educational
institution has satisfactory training or educational facilities
with sufficient tools, supplies, or equipment and the necessary
number of work stations or classrooms to adequately train,
instruct, or educate the number of students enrolled or
proposed to be enrolled.
(3) The postsecondary credit bearing proprietary educational
institution has an adequate number of qualified instructors or
teachers, sufficiently trained by experience or education, to
give the instruction, education, or training contemplated.
(4) The advertising and representations made on behalf of the
postsecondary credit bearing proprietary educational
institution to prospective students are truthful and free from
misrepresentation or fraud.
(5) The charge made for the training, instruction, or
education is clearly stated and based upon the services
rendered.
(6) The premises and conditions under which the students
work and study are sanitary, healthful, and safe according to
modern standards.
(7) The postsecondary credit bearing proprietary educational
institution has and follows a refund policy approved by the
board for proprietary education.
(8) The owner or chief administrator of the postsecondary
credit bearing proprietary educational institution is subject to
a background check by the board for proprietary education
and has not been convicted of a felony.
(9) The owner or chief administrator of the postsecondary
credit bearing proprietary educational institution has not
been the owner or chief administrator of a postsecondary
credit bearing proprietary educational institution that has
had its accreditation revoked or has been closed involuntarily
in the five (5) year period preceding the application for
accreditation. However, if the owner or chief administrator of
the postsecondary credit bearing proprietary educational
institution has been the owner or chief administrator of a
postsecondary credit bearing proprietary educational
institution that has had its accreditation revoked or has been
closed involuntarily more than five (5) years before the
application for accreditation, the board for proprietary
education may issue full accreditation at the board for
proprietary education's discretion.
Sec. 12. (a) After an investigation and a finding that the
information in the application is true and the postsecondary credit
bearing proprietary educational institution meets the minimum
standards, the commission on postsecondary proprietary education
shall issue an accreditation to the postsecondary credit bearing
proprietary educational institution upon payment of an additional
fee of at least twenty-five dollars ($25). An applicant's market
research may not be considered or required by the board for
proprietary education as a condition for accrediting or renewing
the accreditation of or for approval of the programs of a
postsecondary credit bearing proprietary educational institution.
(b) The board for proprietary education may waive inspection
of a postsecondary credit bearing proprietary educational
institution that has been accredited by an accrediting unit whose
standards are approved by the board for proprietary education as
meeting or exceeding the requirements of this chapter.
(c) A valid license, approval to operate, or other form of
accreditation issued to a postsecondary credit bearing proprietary
educational institution by another state may be accepted, instead
of inspection, if:
(1) the requirements of that state meet or exceed the
requirements of this chapter; and
(2) the other state will, in turn, extend reciprocity to
postsecondary credit bearing proprietary educational
institutions accredited by the board for proprietary
education.
(d) An accreditation issued under this section expires one (1)
year following the accreditation's issuance.
(e) An accredited postsecondary credit bearing proprietary
educational institution may renew the institution's accreditation
annually upon:
(1) the payment of a fee of at least twenty-five dollars ($25);
and
(2) continued compliance with this chapter.
Sec. 13. Accreditation may be revoked by the board for
proprietary education:
(1) for cause upon notice and an opportunity for a hearing
before the board for proprietary education; and
(2) for the accredited postsecondary credit bearing
proprietary educational institution failing to make the
appropriate quarterly contributions to the career college
student assurance fund not later than forty-five (45) days
after the end of a quarter.
Sec. 14. (a) A postsecondary credit bearing proprietary
educational institution, after notification that the institution's
accreditation has been refused, revoked, or suspended, may apply
for a hearing before the board for proprietary education
concerning the institution's qualifications. The application for a
hearing must be filed in writing with the board for proprietary
education not more than thirty (30) days after receipt of notice of
the denial, revocation, or suspension.
(b) The board for proprietary education shall give a hearing
promptly and with not less than ten (10) days notice of the date,
time, and place. The postsecondary credit bearing proprietary
educational institution is entitled to be represented by counsel and
to offer oral and documentary evidence relevant to the issue.
(c) Not more than fifteen (15) days after a hearing, the board for
proprietary education shall make written findings of fact, a written
decision, and a written order based solely on the evidence
submitted at the hearing, either granting or denying accreditation
to the postsecondary credit bearing proprietary educational
institution.
Sec. 15. A postsecondary credit bearing proprietary educational
institution's accreditation shall be suspended at any time if the
accredited postsecondary credit bearing proprietary educational
institution denies enrollment to a student or makes a distinction or
classification of students on the basis of race, color, or creed.
Sec. 16. A person may not do the following:
(1) Make, or cause to be made, a statement or representation,
oral, written, or visual, in connection with the offering or
publicizing of a course, if the person knows or should
reasonably know the statement or representation is false,
deceptive, substantially inaccurate, or misleading.
(2) Promise or guarantee employment to a student or
prospective student using information, training, or skill
purported to be provided or otherwise enhanced by a course,
unless the person offers the student or prospective student a
bona fide contract of employment agreeing to employ the
student or prospective student for a period of at least ninety
(90) days in a business or other enterprise regularly
conducted by the person in which that information, training,
or skill is a normal condition of employment.
(3) Do an act that constitutes part of the conduct of
administration of a course if the person knows, or should
reasonably know, that the course is being carried on by the
use of fraud, deception, or other misrepresentation.
Sec. 17. (a) A person representing a postsecondary credit
bearing proprietary educational institution doing business in
Indiana by offering courses may not sell a course or solicit students
for the institution unless the person first secures an agent's permit
from the board for proprietary education. If the agent represents
more than one (1) postsecondary credit bearing proprietary
educational institution, a separate agent's permit must be obtained
for each institution that the agent represents.
(b) Upon approval of an agent's permit, the board for
proprietary education shall issue a pocket card to the person that
includes:
(1) the person's name and address;
(2) the name and address of the postsecondary credit bearing
proprietary educational institution that the person represents;
and
(3) a statement certifying that the person whose name appears
on the card is an authorized agent of the postsecondary credit
bearing proprietary educational institution.
(c) The application must be accompanied by a fee of at least ten
dollars ($10).
(d) An agent's permit is valid for one (1) year from the date of
its issue. An application for renewal must be accompanied by a fee
of at least ten dollars ($10).
(e) A postsecondary credit bearing proprietary educational
institution is liable for the actions of the institution's agents.
Sec. 18. (a) An application for an agent's permit must be
granted or denied by the board for proprietary education not more
than fifteen (15) working days after the receipt of the application.
If the board for proprietary education has not completed a
determination with respect to the issuance of a permit under this
section within the fifteen (15) working day period, the board for
proprietary education shall issue a temporary permit to the
applicant. The temporary permit is sufficient to meet the
requirements of this chapter until a determination is made on the
application.
(b) A permit issued under this chapter may, upon ten (10) days
notice and after a hearing, be revoked by the board for proprietary
education:
(1) if the holder of the permit solicits or enrolls students
through fraud, deception, or misrepresentation; or
(2) upon a finding that the permit holder is not of good moral
character.
Sec. 19. The fact that the career college student assurance fund
exists does not limit or impair a right of recovery and the amount
of damages or other relief to which a plaintiff may be entitled.
Sec. 20. (a) This section applies to claims against the balance of
the career college student assurance fund.
(b) A student or an enrollee of a postsecondary credit bearing
proprietary educational institution who believes that the student or
enrollee has suffered loss or damage resulting from any of the
occurrences described in section 6(a) of this chapter may request
the board for proprietary education to file a claim with the board
for proprietary education against the balance of the fund.
(c) A claim under this section is limited to a refund of the
claimant's applicable tuition and fees.
(d) All claims must be filed not later than five (5) years after the
occurrence resulting in the loss or damage to the claimant occurs.
(e) Upon the filing of a claim under this section, the board for
proprietary education shall review the records submitted by the
appropriate postsecondary credit bearing proprietary educational
institution described under section 12 of this chapter and shall
investigate the claim.
(f) Upon a determination by the commission on postsecondary
proprietary education that a claimant shall be reimbursed under
the career college student assurance fund, the board for
proprietary education shall prioritize the reimbursements under
the following guidelines:
(1) A student's educational loan balances.
(2) Federal grant repayment obligations of the student.
(3) Other expenses paid directly by the student.
Sec. 21. An obligation, negotiable or nonnegotiable, providing
for payment for a course or courses of instruction is void if the
postsecondary credit bearing proprietary educational institution
is not accredited to operate in Indiana.
Sec. 22. The issuance of an agent's permit or any accreditation
may not be considered to constitute approval of a course, a person,
or an institution. A representation to the contrary is a
misrepresentation.
Sec. 23. The prosecuting attorney of the county in which an offense under this chapter occurred shall, at the request of the board for proprietary education or on the prosecuting attorney's own motion, bring any appropriate action, including a mandatory and prohibitive injunction.
Sec. 24. An action of the board for proprietary education concerning the issuance, denial, or revocation of a permit or accreditation under this chapter is subject to review under IC 4-21.5.
Sec. 25. (a) Except as provided in subsection (b), a person who knowingly, intentionally, or recklessly violates this chapter commits a Class B misdemeanor.
(b) A person who, with intent to defraud, represents the person to be an agent of a postsecondary credit bearing proprietary educational institution commits a Class C felony.
Sec. 26. (a) As used in this section, "fund" means the postsecondary credit bearing proprietary educational institution accreditation fund established by subsection (b).
(b) The postsecondary credit bearing proprietary educational institution accreditation fund is established.
(c) The fund shall be administered by the commission (as defined in IC 21-18.5-2-7.).
(d) Money in the fund at the end of a state fiscal year does not revert to the general fund.
(e) All fees collected by the board for proprietary education under this chapter shall be deposited in the fund.
(f) Money in the fund shall be used by the board for postsecondary proprietary education to administer this chapter.
Sec. 27. The board for proprietary education may adopt rules under IC 4-22-2 to implement this chapter.
(1) Review the services and use of funds and resources under applicable federal programs and advise the governor on methods of coordinating the services and use of funds and resources consistent with the laws and regulations governing the particular applicable federal programs.
(2) Advise the governor on:
(A) the development and implementation of state and local standards and measures; and
(B) the coordination of the standards and measures;
concerning the applicable federal programs.
(3) Perform the duties as set forth in federal law of the particular advisory bodies for applicable federal programs described in section 4 of this chapter.
(4) Identify the workforce needs in Indiana and recommend to the governor goals to meet the investment needs.
(5) Recommend to the governor goals for the development and coordination of the human resource system in Indiana.
(6) Prepare and recommend to the governor a strategic plan to accomplish the goals developed under subdivisions (4) and (5).
(7) Monitor the implementation of and evaluate the effectiveness of the strategic plan described in subdivision (6).
(8) Advise the governor on the coordination of federal, state, and local education and training programs and on the allocation of state and federal funds in Indiana to promote effective services, service delivery, and innovative programs.
(9) Administer the minority training grant program established by section 11 of this chapter.
(10) Administer the back home in Indiana program established by section 12 of this chapter.
(11) Any other function assigned to the council by the governor with regard to the study and evaluation of Indiana's workforce development delivery system.
(12) Administer postsecondary proprietary educational institution accreditation under IC 22-4.1- 21.
Chapter 21. Postsecondary Proprietary Educational Institution Accreditation
Sec. 1. IC 21-18.5-1-3, IC 21-18.5-1-4, and IC 21-18.5-1-5 apply to this chapter.
Sec. 2. As used in this chapter, "accreditation" means certification of a status of approval or authorization by the council to conduct business as a postsecondary proprietary educational institution.
Sec. 3. As used in this chapter, "agent" means a person who:
(1) enrolls or seeks to enroll a resident of Indiana through:
(A) personal contact;
(B) telephone;
(C) advertisement;
(D) letter; or
(E) publications;
in a course offered by a postsecondary proprietary educational institution; or
(2) otherwise holds the person out to the residents of Indiana as representing a postsecondary proprietary educational institution.
Sec. 4. As used in this chapter, "agent's permit" means a nontransferable written authorization issued to a person by the council to solicit a resident of Indiana to enroll in a course offered or maintained by a postsecondary proprietary educational institution.
Sec. 5. As used in this chapter, "application" means a written request for accreditation or an agent's permit on forms supplied by the council.
Sec. 6. As used in this chapter, "course" means a plan or program of instruction or training, whether conducted in person, by mail, or by any other method.
Sec. 7. As used in this chapter, "fund" refers to the student assurance fund established by section 18 of this chapter.
Sec. 8. As used in this chapter, "person" means an individual, a partnership, a limited liability company, an association, a corporation, a joint venture, a trust, a receiver, or a trustee in bankruptcy.
Sec. 9. As used in this chapter, "postsecondary proprietary educational institution" means a person doing business in Indiana by offering to the public, for a tuition, fee, or charge, instructional or educational services or training in a technical, professional, mechanical, business, or industrial occupation, in the recipient's home, at a designated location, or by mail. The term does not include the following:
(1) A postsecondary credit bearing proprietary educational institution accredited by the board for proprietary education under IC 21-18.5-6.
(2) A state educational institution or another educational institution established by law and financed in whole or in part by public funds.
(3) A postsecondary proprietary educational institution
approved or regulated by any other state regulatory board,
agency, or commission.
(4) An elementary or secondary school attended by students
in kindergarten or grades 1 through 12 and supported in
whole or in part by private tuition payments.
(5) Any educational institution or educational training that:
(A) is maintained or given by an employer or a group of
employers, without charge, for employees or for
individuals the employer anticipates employing;
(B) is maintained or given by a labor organization, without
charge, for its members or apprentices;
(C) offers exclusively instruction that is clearly
self-improvement, motivational, or avocational in intent
(including instruction in dance, music, or self-defense, and
private tutoring); or
(D) is a Montessori or nursery school.
(6) A privately endowed two (2) or four (4) year degree
granting institution that is regionally accredited and whose
principal campus is located in Indiana.
Sec. 10. (a) The office for career and technical schools is
established to carry out the responsibilities of the council under
this chapter.
(b) The council may employ and fix compensation for necessary
administrative staff with the approval of the department.
(c) The council may adopt reasonable rules under IC 4-22-2 to
implement this chapter.
(d) The council may adopt and use a seal, the description of
which shall be filed with the office of the secretary of state, and
which may be used for the authentication of the acts of the council.
Sec. 11. The general assembly recognizes that the private school
is an essential part of the educational system. It is the purpose of
this chapter to protect students, educational institutions, the
general public, and honest and ethical operators of private schools
from dishonest and unethical practices.
Sec. 12. A person may not do business as a postsecondary
proprietary educational institution in Indiana without having
obtained accreditation under this chapter.
Sec. 13. Applications for accreditation under this chapter must
be filed with the council and accompanied by an application fee of
at least one hundred dollars ($100) for processing the application
and evaluating the postsecondary proprietary educational
institution.
Sec. 14. An application for accreditation under this chapter must include at least the following information:
(1) The name and address of the postsecondary proprietary educational institution and the institution's officers.
(2) The places where the courses are to be provided.
(3) The types of courses to be offered, the form of instruction to be followed with the class, shop, or laboratory, and the hours required for each curriculum.
(4) The form of certificate, diploma, or degree to be awarded.
(5) A statement of the postsecondary proprietary educational institution's finances.
(6) A description of the postsecondary proprietary educational institution's physical facilities, including classrooms, laboratories, library, machinery, and equipment.
(7) An explicit statement of policy with reference to:
(A) solicitation of students;
(B) payment and amount of student fees; and
(C) conditions under which students are entitled to a refund in part or in full of fees paid, including a statement concerning the existence of the fund.
(8) Provisions for liability insurance of students.
(9) Maximum student-teacher ratio to be maintained.
(10) Minimum requirements for instructional staff.
Sec. 15. (a) This section is subject to section 16 of this chapter.
(b) An application for accreditation under this chapter must include a surety bond in a penal sum determined under section 16 of this chapter. The bond must be executed by the applicant as principal and by a surety company qualified and authorized to do business in Indiana as a surety or cash bond company.
(c) The surety bond must be conditioned to provide indemnification to any student or enrollee who suffers a loss or damage as a result of:
(1) the failure or neglect of the postsecondary proprietary educational institution to faithfully perform all agreements, express or otherwise, with the student, enrollee, one (1) or both of the parents of the student or enrollee, or a guardian of the student or enrollee as represented by the application for the institution's accreditation and the materials submitted in support of the application;
(2) the failure or neglect of the postsecondary proprietary educational institution to maintain and operate a course or courses of instruction or study in compliance with the
standards of this chapter; or
(3) an agent's misrepresentation in procuring the student's
enrollment.
(d) A surety on a bond may be released after the surety has
made a written notice of the release directed to the council at least
thirty (30) days before the release. However, a surety may not be
released from the bond unless all sureties on the bond are released.
(e) A surety bond covers the period of the accreditation.
(f) Accreditation under this chapter shall be suspended if a
postsecondary proprietary educational institution is no longer
covered by a surety bond or if the postsecondary proprietary
educational institution fails to comply with section 16 of this
chapter. The council shall notify the postsecondary proprietary
educational institution in writing at least ten (10) days before the
release of the surety or sureties that the accreditation is suspended
until another surety bond is filed in the manner and amount
required under this chapter.
Sec. 16. (a) Subject to subsections (b), (d), and (e), the council
shall determine the penal sum of each surety bond required under
section 15 of this chapter based upon the following guidelines:
(1) A postsecondary proprietary educational institution that
has no annual gross tuition charges assessed for the previous
year shall secure a surety bond in the amount of twenty-five
thousand dollars ($25,000).
(2) If at any time the postsecondary proprietary educational
institution's projected annual gross tuition charges are more
than two hundred fifty thousand dollars ($250,000), the
institution shall secure a surety bond in the amount of fifty
thousand dollars ($50,000).
(b) After June 30, 2006, and except as provided in:
(1) section 19 of this chapter; and
(2) subsection (e);
and upon the fund achieving at least an initial one million dollar
($1,000,000) balance, a postsecondary proprietary educational
institution that contributes to the fund when the initial quarterly
contribution is required under this chapter after the fund's
establishment is not required to make contributions to the fund or
submit a surety bond.
(c) The council shall determine the number of quarterly
contributions required for the fund to initially accumulate one
million dollars ($1,000,000).
(d) Except as provided in section 19 of this chapter and
subsection (e), a postsecondary proprietary educational institution
that begins making contributions to the fund after the initial
quarterly contribution as required under this chapter is required
to make contributions to the fund for the same number of quarters
as determined by the council under subsection (c).
(e) If, after the fund acquires one million dollars ($1,000,000),
the balance in the fund becomes less than five hundred thousand
dollars ($500,000), all postsecondary proprietary educational
institutions not required to make contributions to the fund as
described in subsection (b) or (d) shall make contributions to the
fund for the number of quarters necessary for the fund to
accumulate one million dollars ($1,000,000).
Sec. 17. The council shall require each postsecondary
proprietary educational institution to include in each curriculum
catalog and promotional brochure the following:
(1) A statement indicating that the postsecondary proprietary
educational institution is regulated by the council under this
chapter.
(2) The council's mailing address and telephone number.
Sec. 18. (a) The student assurance fund is established to provide
indemnification to a student or an enrollee of a postsecondary
proprietary educational institution who suffers loss or damage as
a result of an occurrence described in section 15(c) of this chapter
if the occurrence transpired after June 30, 1992, and as provided
in section 35 of this chapter.
(b) The council shall administer the fund.
(c) The expenses of administering the fund shall be paid from
money in the fund.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(e) Money in the fund at the end of a state fiscal year does not
revert to the state general fund but remains available to be used for
providing money for reimbursements allowed under this chapter.
(f) Upon the fund acquiring fifty thousand dollars ($50,000), the
balance in the fund must not become less than fifty thousand
dollars ($50,000). If:
(1) a claim against the fund is filed that would, if paid in full,
require the balance of the fund to become less than fifty
thousand dollars ($50,000); and
(2) the council determines that the student is eligible for a
reimbursement under the fund;
the council shall prorate the amount of the reimbursement to
ensure that the balance of the fund does not become less than fifty
thousand dollars ($50,000), and the student is entitled to receive
that balance of the student's claim from the fund as money
becomes available in the fund from contributions to the fund
required under this chapter.
(g) The council shall ensure that all outstanding claim amounts
described in subsection (f) are paid as money in the fund becomes
available in the chronological order of the outstanding claims.
(h) A claim against the fund may not be construed to be a debt
of the state.
Sec. 19. (a) Subject to section 16 of this chapter, each
postsecondary proprietary educational institution shall make
quarterly contributions to the fund. The quarters begin January 1,
April 1, July 1, and October 1.
(b) For each quarter, each postsecondary proprietary
educational institution shall make a contribution equal to the STEP
THREE amount derived under the following formula:
STEP ONE: Determine the total amount of tuition and fees
earned during the quarter.
STEP TWO: Multiply the STEP ONE amount by one-tenth of
one percent (0.1%).
STEP THREE: Add the STEP TWO amount and sixty dollars
($60).
(c) Notwithstanding section 16 of this chapter, for a
postsecondary proprietary educational institution beginning
operation after September 30, 2004, the council, in addition to
requiring contributions to the fund, shall require the
postsecondary proprietary educational institution to submit a
surety bond in an amount determined by the council for a period
that represents the number of quarters required for the fund to
initially accumulate one million dollars ($1,000,000) as determined
under section 16(c) of this chapter.
Sec. 20. (a) Upon receipt of an application for accreditation
under this chapter, the council shall make an investigation to
determine the accuracy of the statements in the application to
determine if the postsecondary proprietary educational institution
meets the minimum standards for accreditation.
(b) During the investigation under subsection (a), the council
may grant a temporary status of accreditation. The temporary
status of accreditation is sufficient to meet the requirements of this
chapter until a determination on accreditation is made.
Sec. 21. The cost of performing a team onsite investigation for
purposes of section 20 of this chapter shall be paid by the applicant
postsecondary proprietary educational institution. However, the
total cost of an inspection, including room, board, and mileage that
does not require travel outside Indiana, may not exceed one
thousand dollars ($1,000) for any one (1) postsecondary
proprietary educational institution.
Sec. 22. (a) A postsecondary proprietary educational institution
shall maintain at least the following records for each student:
(1) The program in which the student enrolls.
(2) The length of the program.
(3) The date of the student's initial enrollment in the program.
(4) The student's period of attendance.
(5) The amount of the student's tuition and fees.
(6) A copy of the enrollment agreement.
(b) Upon the request of the council, a postsecondary proprietary
educational institution shall submit the records described in
subsection (a) to the council.
(c) If a postsecondary proprietary educational institution ceases
operation, the postsecondary proprietary educational institution
shall submit the records described in subsection (a) to the council
not later than thirty (30) days after the institution ceases to
operate.
Sec. 23. Full accreditation under this chapter may not be issued
unless and until the council finds that the postsecondary
proprietary educational institution meets minimum standards that
are appropriate to that type or class of postsecondary proprietary
educational institution, including the following minimum
standards:
(1) The postsecondary proprietary educational institution has
a sound financial structure with sufficient resources for
continued support.
(2) The postsecondary proprietary educational institution has
satisfactory training or educational facilities with sufficient
tools, supplies, or equipment and the necessary number of
work stations or classrooms to adequately train, instruct, or
educate the number of students enrolled or proposed to be
enrolled.
(3) The postsecondary proprietary educational institution has
an adequate number of qualified instructors or teachers,
sufficiently trained by experience or education, to give the
instruction, education, or training contemplated.
(4) The advertising and representations made on behalf of the
postsecondary proprietary educational institution to
prospective students are truthful and free from
misrepresentation or fraud.
(5) The charge made for the training, instruction, or
education is clearly stated and based upon the services
rendered.
(6) The premises and conditions under which the students
work and study are sanitary, healthful, and safe according to
modern standards.
(7) The postsecondary proprietary educational institution has
and follows a refund policy approved by the council.
(8) The owner or chief administrator of the postsecondary
proprietary educational institution has not been convicted of
a felony.
(9) The owner or chief administrator of the postsecondary
proprietary educational institution has not been the owner or
chief administrator of a postsecondary proprietary
educational institution that has had its accreditation revoked
or has been closed involuntarily in the five (5) year period
preceding the application for accreditation. However, if the
owner or chief administrator of the postsecondary
proprietary educational institution has been the owner or
chief administrator of a postsecondary proprietary
educational institution that has had its accreditation revoked
or has been closed involuntarily more than five (5) years
before the application for accreditation, the council may issue
full accreditation at the council's discretion.
Sec. 24. (a) After an investigation and a finding that the
information in the application is true and the postsecondary
proprietary educational institution meets the minimum standards,
the council shall issue an accreditation to the postsecondary
proprietary educational institution upon payment of an additional
fee of at least twenty-five dollars ($25).
(b) The council may waive inspection of a postsecondary
proprietary educational institution that has been accredited by an
accrediting unit whose standards are approved by the council as
meeting or exceeding the requirements of this chapter.
(c) A valid license, approval to operate, or other form of
accreditation issued to a postsecondary proprietary educational
institution by another state may be accepted, instead of inspection,
if:
(1) the requirements of that state meet or exceed the
requirements of this chapter; and
(2) the other state will, in turn, extend reciprocity to
postsecondary proprietary educational institutions accredited
by the council.
(d) An accreditation issued under this section expires one (1)
year following the accreditation's issuance.
(e) An accredited postsecondary proprietary educational
institution may renew the institution's accreditation annually
upon:
(1) the payment of a fee of at least twenty-five dollars ($25);
and
(2) continued compliance with this chapter.
Sec. 25. Accreditation under this chapter may be revoked by the
council:
(1) for cause upon notice and an opportunity for a council
hearing; and
(2) for the accredited postsecondary proprietary educational
institution failing to make the appropriate quarterly
contributions to the fund not later than forty-five (45) days
after the end of a quarter.
Sec. 26. (a) A postsecondary proprietary educational institution,
after notification that the institution's accreditation has been
refused, revoked, or suspended, may apply for a hearing before the
council concerning the institution's qualifications. The application
for a hearing must be filed in writing with the council not more
than thirty (30) days after receipt of notice of the denial,
revocation, or suspension.
(b) The council shall give a hearing promptly and with not less
than ten (10) days notice of the date, time, and place. The
postsecondary proprietary educational institution is entitled to be
represented by counsel and to offer oral and documentary evidence
relevant to the issue.
(c) Not more than fifteen (15) days after a hearing, the council
shall make written findings of fact, a written decision, and a
written order based solely on the evidence submitted at the
hearing, either granting or denying accreditation to the
postsecondary proprietary educational institution.
Sec. 27. A postsecondary proprietary educational institution's
accreditation shall be suspended at any time if the accredited
postsecondary proprietary educational institution denies
enrollment to a student or makes a distinction or classification of
students on the basis of race, color, or creed.
Sec. 28. A person may not do the following:
(1) Make, or cause to be made, a statement or representation,
oral, written, or visual, in connection with the offering or
publicizing of a course, if the person knows or should
reasonably know the statement or representation is false,
deceptive, substantially inaccurate, or misleading.
(2) Promise or guarantee employment to a student or
prospective student using information, training, or skill
purported to be provided or otherwise enhanced by a course,
unless the person offers the student or prospective student a
bona fide contract of employment agreeing to employ the
student or prospective student for a period of at least ninety
(90) days in a business or other enterprise regularly
conducted by the person in which that information, training,
or skill is a normal condition of employment.
(3) Do an act that constitutes part of the conduct of
administration of a course if the person knows, or should
reasonably know, that the course is being carried on by the
use of fraud, deception, or other misrepresentation.
Sec. 29. (a) A person representing a postsecondary proprietary
educational institution doing business in Indiana by offering
courses may not sell a course or solicit students for the institution
unless the person first secures an agent's permit from the council.
If the agent represents more than one (1) postsecondary
proprietary educational institution, a separate agent's permit must
be obtained for each institution that the agent represents.
(b) Upon approval of an agent's permit, the council shall issue
a pocket card to the person that includes:
(1) the person's name and address;
(2) the name and address of the postsecondary proprietary
educational institution that the person represents; and
(3) a statement certifying that the person whose name appears
on the card is an authorized agent of the postsecondary
proprietary educational institution.
(c) The application must be accompanied by a fee of at least ten
dollars ($10).
(d) An agent's permit is valid for one (1) year from the date of
its issue. An application for renewal must be accompanied by a fee
of at least ten dollars ($10).
(e) A postsecondary proprietary educational institution is liable
for the actions of the institution's agents.
Sec. 30. (a) An application for an agent's permit must be
granted or denied by the council not more than fifteen (15)
working days after the receipt of the application. If the council has
not completed a determination with respect to the issuance of a
permit under this section within the fifteen (15) working day
period, the council shall issue a temporary permit to the applicant.
The temporary permit is sufficient to meet the requirements of this
chapter until a determination is made on the application.
(b) A permit issued under this chapter may, upon ten (10) days
notice and after a hearing, be revoked by the council:
(1) if the holder of the permit solicits or enrolls students
through fraud, deception, or misrepresentation; or
(2) upon a finding that the permit holder is not of good moral
character.
Sec. 31. The fact that a bond is in force or that the fund exists
does not limit or impair a right of recovery and the amount of
damages or other relief to which a plaintiff may be entitled under
this chapter.
Sec. 32. An obligation, negotiable or nonnegotiable, providing
for payment for a course or courses of instruction is void if the
postsecondary proprietary educational institution is not accredited
to operate in Indiana.
Sec. 33. The issuance of an agent's permit or any accreditation
may not be considered to constitute approval of a course, a person,
or an institution. A representation to the contrary is a
misrepresentation.
Sec. 34. (a) This section applies to claims against the surety bond
of a postsecondary proprietary educational institution.
(b) A student who believes that the student is suffering loss or
damage resulting from any of the occurrences described in section
15(c) of this chapter may request the council to file a claim against
the surety of the postsecondary proprietary educational institution
or agent.
(c) The request must state the grounds for the claim and must
include material substantiating the claim.
(d) The council shall investigate all claims submitted to the
council and attempt to resolve the claims informally. If the council
determines that a claim is valid, and an informal resolution cannot
be made, the council shall submit a formal claim to the surety.
(e) A claim against the surety bond may not be filed by the
council unless the student's request under subsection (b) is
commenced not more than five (5) years after the date on which
the loss or damage occurred.
(f) If the amount of the surety bond is insufficient to cover all or
part of the claim, a claim for the balance of the claim against the
surety bond in the amount that is insufficient must be construed to
be a claim against the balance of the fund under section 35 of this
chapter.
Sec. 35. (a) This section applies:
(1) to claims against the balance of the fund; and
(2) in cases in which a student or an enrollee of a
postsecondary proprietary educational institution is protected
by both a surety bond and the balance of the fund, only after
a claim against the surety bond exceeds the amount of the
surety bond.
(b) A student or an enrollee of a postsecondary proprietary
educational institution who believes that the student or enrollee has
suffered loss or damage resulting from any of the occurrences
described in section 15(c) of this chapter may request the council
to file a claim with the council against the balance of the fund. If
there is a surety bond in an amount sufficient to cover a claim or
part of a claim under this section, a claim against the balance of the
fund must be construed to be a claim against the surety bond first
to the extent that the amount of the surety bond exists and the
balance of the claim may be filed against the balance of the fund.
(c) A claim under this section is limited to a refund of the
claimant's applicable tuition and fees.
(d) All claims must be filed not later than five (5) years after the
occurrence that results in the loss or damage to the claimant.
(e) Upon the filing of a claim under this section, the council shall
review the records submitted by the appropriate postsecondary
proprietary educational institution described under section 22 of
this chapter and shall investigate the claim and attempt to resolve
the claim as described in section 34(d) of this chapter.
(f) Upon a determination by the council that a claimant shall be
reimbursed under the fund, the council shall prioritize the
reimbursements under the following guidelines:
(1) A student's educational loan balances.
(2) Federal grant repayment obligations of the student.
(3) Other expenses paid directly by the student.
Sec. 36. The prosecuting attorney of the county in which an
offense under this chapter occurred shall, at the request of the
council or on the prosecuting attorney's own motion, bring any
appropriate action, including a mandatory and prohibitive
injunction.
Sec. 37. An action of the council concerning the issuance, denial,
or revocation of a permit or accreditation under this chapter is
subject to review under IC 4-21.5.
Sec. 38. (a) Except as provided in subsection (b), a person who
knowingly, intentionally, or recklessly violates this chapter
commits a Class B misdemeanor.
(b) A person who, with intent to defraud, represents the person
to be an agent of a postsecondary proprietary educational
institution commits a Class C felony.
Sec. 39. (a) The proprietary educational institution accreditation
fund is established.
(b) The proprietary educational institution accreditation fund
shall be administered by the council.
(c) Money in the proprietary educational institution
accreditation fund at the end of a state fiscal year does not revert
to the general fund.
(d) All fees collected by the council under this chapter shall be
deposited in the proprietary educational institution accreditation
fund.
(e) Money in the proprietary educational institution
accreditation fund shall be used by the council to administer this
chapter.
(1) Furnish evidence satisfactory to the board showing that the individual:
(A) is at least eighteen (18) years of age;
(B) has a high school diploma or the equivalent of a high school diploma;
(C) has successfully completed a massage therapy school or program that:
(i) requires at least five hundred (500) hours of supervised classroom and hands on instruction on massage therapy;
(ii) is in good standing with a state, regional, or national agency of government charged with regulating massage therapy schools or programs; and
(iii) is accredited by the
another state where the standards for massage therapy
education are substantially the same as the standards in
Indiana, or is a program at an institution of higher learning
that is approved by the board; and
(D) has taken and passed a certification examination approved
by the board.
(2) Provide a history of any criminal convictions the individual
has, including any convictions related to the practice of the
profession. The board shall deny an application for certification
if the applicant:
(A) has been convicted of:
(i) prostitution;
(ii) rape; or
(iii) sexual misconduct; or
(B) is a registered sex offender.
(3) Provide proof that the applicant has professional liability
insurance in force that lists the state as an additional insured.
(4) Verify the information submitted on the application form.
(5) Pay fees established by the board.
IC 21-12-6.5-5 (Concerning scholarships and grants).
IC 21-14-4-7 (Concerning state educational institutions).
IC 21-14-7-12 (Concerning state educational institutions).
IC 21-14-10-7 (Concerning state educational institutions).
IC 22-1-1-22 (Concerning the department of labor).
IC 22-2-2-11 (Concerning wages, hours, and benefits).
IC 22-2-7-7 (Concerning wages, hours, and benefits).
IC 22-3-1-5 (Concerning worker's compensation system).
IC 22-4-11.5-10 (Concerning unemployment compensation system).
IC 22-4-19-6 (Concerning unemployment compensation system).
IC 22-4-29-14 (Concerning unemployment compensation system).
IC 22-4-34-3 (Concerning unemployment compensation system).
IC 22-4-34-4 (Concerning unemployment compensation system).
IC 22-4-34-5 (Concerning unemployment compensation system).
IC 22-4.1-4-4 (Concerning department of workforce development).
IC 22-4.1-21-38 (Concerning postsecondary proprietary educational institution accreditation).
IC 22-5-1-1 (Concerning unlawful labor practices).
IC 22-6-2-13 (Concerning labor relations).
IC 22-7-1-3 (Concerning labor organizations).
IC 22-8-1.1-24.2 (Concerning occupational health and safety).
IC 22-8-1.1-49 (Concerning occupational health and safety).
IC 22-9.5-10-1 (Concerning Indiana fair housing).
IC 22-11-14-3 (Concerning building and safety regulations).
IC 22-11-14-6 (Concerning building and safety regulations).
IC 22-11-14.5-9 (Concerning building and safety regulations).
IC 22-11-14.5-10 (Concerning building and safety regulations).
IC 22-11-14.5-11 (Concerning building and safety regulations).
IC 22-11-14.5-12 (Concerning building and safety regulations).
IC 22-11-15-6 (Concerning building and safety regulations).
IC 22-11-17-3 (Concerning building and safety regulations).
IC 22-11-17-4 (Concerning building and safety regulations).
IC 22-11-18-5 (Concerning building and safety regulations).
IC 22-11-20-6 (Concerning building and safety regulations).
IC 22-15-4-7 (Concerning building and equipment laws).
IC 22-15-7-9 (Concerning building and equipment laws).
(b) This SECTION expires July 2, 2012.
(b) Notwithstanding IC 4-22-2-37.1(g), a temporary rule adopted under this SECTION expires on the occurrence of the earlier of:
(1) the date the board for proprietary education adopts rules under IC 4-22-2; or
(2) July 1, 2013.
(c) This SECTION expires January 1, 2014.
added by this act, members serving as members of the Indiana
commission on proprietary education on June 30, 2012, are
considered members of the board for proprietary education
established by IC 21-18.5-5-1, as added by this act, until the date
the member's term would have expired under IC 21-17-2, before
its repeal by this act.
(b) This SECTION expires July 1, 2017.
(1) Three hundred thousand dollars ($300,000) to the career college student assurance fund established by IC 21-18.5-6-6, as added by this act.
(2) The remainder of the money not transferred under subdivision (1) to the student assurance fund established by IC 22-4.1-21-18, as added by this act.
(b) This SECTION expires January 1, 2013.
(b) The general assembly urges the legislative council to assign the following topics pertaining to the implementation of this act to an appropriate committee:
(1) Study whether additional legislative changes are necessary to assist with the transfer of responsibilities from the Indiana commission on proprietary education established under IC 21-17-2-1, as repealed by this act, to the:
(A) state workforce innovation council under IC 22-4.1-21, as added by this act; and
(B) board for proprietary education under IC 21-18.5-6, as added by this act.
(2) Study whether a postsecondary credit bearing proprietary educational institution, as defined in IC 21-18.5-2-12, as added by this act, should be required to provide a surety bond to the board for proprietary education as established by IC 21-18.5-5-1, as added by this act.
(3) Study issues relating to the career college student assurance fund established in IC 21-18.5-6-6, as added by this act.
(4) Study any other issue pertaining to the accreditation of a
postsecondary credit bearing proprietary educational
institution, as defined in IC 21-18.5-2-12, as added by this act,
or a postsecondary proprietary educational institution, as
defined in IC 22-4.1-21-9, as added by this act, that the
legislative council determines is appropriate.
(c) If the topics described in subsection (b) are assigned to a
committee under subsection (b), the committee shall, not later than
November 1, 2012, issue a final report to the legislative council
concerning the findings and recommendations of the committee
concerning the topics described in subsection (b).
(d) This SECTION expires December 31, 2012.
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