Bill Text: OR HB3392 | 2013 | Regular Session | Introduced
Bill Title: Relating to a fund for tuition protection; declaring an emergency.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB3392 Detail]
Download: Oregon-2013-HB3392-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3431
House Bill 3392
Sponsored by Representative HUFFMAN; Representative SPRENGER,
Senator ROBLAN (at the request of Northwest Career Colleges
Federation)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Changes name of Tuition Protection Fund to Tuition Protection
Trust Fund. Establishes fund as trust fund.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to a fund for tuition protection; creating new
provisions; amending ORS 345.017 and 345.110; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 345.110 is amended to read:
345.110. (1) The Tuition Protection { + Trust + } Fund is
established separate and distinct from the General Fund. Interest
earned by the { + trust + } fund shall be credited to the
{ + trust + } fund. Proceeds of the { + trust + } fund are
continuously appropriated to the Department of Education to
protect students when a career school ceases to provide
educational services and for administrative expenses incurred
under subsection { - (5) - } { + (6) + } of this section.
{ + (2) The Tuition Protection Trust Fund is a trust fund
established exclusively for the uses and purposes declared in
this section. The State of Oregon declares that this state has no
proprietary interest in the Tuition Protection Trust Fund and
disclaims any right to claim contributions made to the trust fund
from sources other than the General Fund. The Legislative
Assembly unambiguously expresses an intention to create a
contractual obligation of this state to subscribe to use the
moneys in the trust fund only for the purposes declared in this
section and commits to not transfer the moneys in the trust fund
to any other fund or account to be used for other purposes. This
subsection does not impair the force or effect of any law of this
state specifically authorizing the investment of moneys from the
trust fund. + }
{ - (2) - } { + (3) + } The Superintendent of Public
Instruction shall maintain and administer the { + Tuition
Protection Trust + } Fund, and the State Board of Education shall
adopt by rule procedures governing the administration and
maintenance of the { + trust + } fund, including requirements
relating to contributions to and claims against the { +
trust + } fund.
{ - (3) - } { + (4) + } Each career school shall pay to the
Tuition Protection { + Trust + } Fund an initial capitalization
deposit in amounts and within time limits established by rule of
the board. Thereafter, each school shall make installment
payments based on a matrix adopted by rule of the board. In
establishing the amount and frequency of payments, the board may
consider the enrollment and financial condition of each school
and such other factors as the board considers appropriate. The
superintendent may deny, suspend or revoke the license of a
school { - which - } { + that + } fails to make payments or
fails to conform to other requirements of this section or rules
adopted by the board under this section.
{ - (4) - } { + (5) + } The superintendent shall deposit
moneys received under this section with the State Treasurer in
the Tuition Protection { + Trust + } Fund.
{ - (5) - } { + (6) + } The superintendent may disburse
moneys from the { + Tuition Protection Trust + } Fund by checks
or orders drawn upon the State Treasurer in conformance with
rules of the board and only for tuition protection purposes,
including the superintendent's costs in administering and
maintaining the { + trust + } fund.
{ - (6) - } { + (7) + } The superintendent may enter into
contracts to carry out the purposes of the { + Tuition
Protection Trust + } Fund. The provisions of ORS 279.835 to
279.855 and ORS chapters 279A and 279B do not apply to contracts
entered into under this subsection.
SECTION 2. ORS 345.110, as amended by section 29, chapter 104,
Oregon Laws 2012, is amended to read:
345.110. (1) The Tuition Protection { + Trust + } Fund is
established separate and distinct from the General Fund. Interest
earned by the { + trust + } fund shall be credited to the
{ + trust + } fund. Proceeds of the { + trust + } fund are
continuously appropriated to the Higher Education Coordinating
Commission to protect students when a career school ceases to
provide educational services and for administrative expenses
incurred under subsection { - (5) - } { + (6) + } of this
section.
{ + (2) The Tuition Protection Trust Fund is a trust fund
established exclusively for the uses and purposes declared in
this section. The State of Oregon declares that this state has no
proprietary interest in the Tuition Protection Trust Fund and
disclaims any right to claim contributions made to the trust fund
from sources other than the General Fund. The Legislative
Assembly unambiguously expresses an intention to create a
contractual obligation of this state to subscribe to use the
moneys in the trust fund only for the purposes declared in this
section and commits to not transfer the moneys in the trust fund
to any other fund or account to be used for other purposes. This
subsection does not impair the force or effect of any law of this
state specifically authorizing the investment of moneys from the
trust fund. + }
{ - (2) - } { + (3) + } The commission shall maintain and
administer the { + Tuition Protection Trust + } Fund and shall
adopt by rule procedures governing the administration and
maintenance of the { + trust + } fund, including requirements
relating to contributions to and claims against the
{ + trust + } fund.
{ - (3) - } { + (4) + } Each career school shall pay to the
Tuition Protection { + Trust + } Fund an initial capitalization
deposit in amounts and within time limits established by rule of
the commission. Thereafter, each school shall make installment
payments based on a matrix adopted by rule of the commission. In
establishing the amount and frequency of payments, the commission
may consider the enrollment and financial condition of each
school and such other factors as the commission considers
appropriate. The commission may deny, suspend or revoke the
license of a school { - which - } { + that + } fails to make
payments or fails to conform to other requirements of this
section or rules adopted by the commission under this section.
{ - (4) - } { + (5) + } The commission shall deposit moneys
received under this section with the State Treasurer in the
Tuition Protection { + Trust + } Fund.
{ - (5) - } { + (6) + } The commission may disburse moneys
from the { + Tuition Protection Trust + } Fund by checks or
orders drawn upon the State Treasurer in conformance with rules
of the commission and only for tuition protection purposes,
including the commission's costs in administering and maintaining
the { + trust + } fund.
{ - (6) - } { + (7) + } The commission may enter into
contracts to carry out the purposes of the { + Tuition
Protection Trust + } Fund. The provisions of ORS 279.835 to
279.855 and ORS chapters 279A and 279B do not apply to contracts
entered into under this subsection.
SECTION 3. { + The amendments to ORS 345.110 by sections 1 and
2 of this 2013 Act apply to moneys deposited in the Tuition
Protection Trust Fund on or after the effective date of this 2013
Act. + }
SECTION 4. ORS 345.017 is amended to read:
345.017. When a school that is licensed under ORS 345.010 to
345.450 is approved by the Higher Education Coordinating
Commission to confer or offer to confer an academic degree under
ORS 348.606 and the school continues to offer a course or program
that does not lead to an academic degree:
(1) The school must continue to be licensed as a career school
and meet the requirements of ORS 345.010 to 345.450 until:
(a) All courses or programs offered by the school are approved
by the commission; and
(b) All students who were first enrolled in the school when the
school was licensed as a career school have:
(A) Completed the course or program for which the student
contracted with the career school; or
(B) Terminated enrollment in the career school for any reason.
(2) A student who is enrolled in a course or program for which
a school must be licensed under ORS 345.010 to 345.450 is
eligible for moneys from the Tuition Protection { + Trust + }
Fund established under ORS 345.110 if the student:
(a) Qualifies for moneys under rules adopted by the State Board
of Education under ORS 345.110; and
(b) Was first admitted to the school when the school was
licensed as a career school under ORS 345.010 to 345.450.
(3) When a course or program that did not lead to an academic
degree is approved by the Higher Education Coordinating
Commission to lead to an academic degree, the regulatory
authority for that course or program transfers to the commission
upon the approval.
SECTION 5. ORS 345.017, as amended by section 22, chapter 104,
Oregon Laws 2012, is amended to read:
345.017. When a school that is licensed under ORS 345.010 to
345.450 is approved by the Higher Education Coordinating
Commission to confer or offer to confer an academic degree under
ORS 348.606 and the school continues to offer a course or program
that does not lead to an academic degree:
(1) The school must continue to be licensed as a career school
and meet the requirements of ORS 345.010 to 345.450 until:
(a) All courses or programs offered by the school are approved
by the commission; and
(b) All students who were first enrolled in the school when the
school was licensed as a career school have:
(A) Completed the course or program for which the student
contracted with the career school; or
(B) Terminated enrollment in the career school for any reason.
(2) A student who is enrolled in a course or program for which
a school must be licensed under ORS 345.010 to 345.450 is
eligible for moneys from the Tuition Protection { + Trust + }
Fund established under ORS 345.110 if the student:
(a) Qualifies for moneys under rules adopted by the Higher
Education Coordinating Commission under ORS 345.110; and
(b) Was first admitted to the school when the school was
licensed as a career school under ORS 345.010 to 345.450.
(3) When a course or program that did not lead to an academic
degree is approved by the Higher Education Coordinating
Commission to lead to an academic degree, the regulatory
authority for that course or program transfers to the commission
upon the approval.
SECTION 6. { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
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