Date: 04/08/2013

Final
BILL SUMMARY for HB13-1263

HOUSE COMMITTEE ON EDUCATION

Votes: View--> Action Taken:
Refer House Bill 13-1263 to the Committee of the WPASS



01:33 PM -- House Bill 13-1263

Representative Hamner, Chair, called the meeting to order and welcomed the committee and audience to the meeting. She made an announcement to the committee about the upcoming hearing for Senate Bill 13-213 and requested that committee members submit amendments to the bill by Thursday so that they can be compiled into a packet for the committee to review over the weekend. She invited Representative Primavera to the table to present the bill.

Representative Primavera, prime sponsor, presented House Bill 13-1263 which concerns the regulation of private occupational schools by the Private Occupational School Board (board), and requires that nonprofit private occupational schools be subject to regulation by the board. The bill requires that nonprofit private occupational schools be authorized and regulated by the board in the Division of Private Occupational Schools (DPOS) in the Department of Higher Education (DHE). Additionally, the bill:

• modifies the criteria for selecting certain members of the board;
• removes the power of the board to grant accreditation;
• requires that private occupational schools document their financial stability, but removes the current requirement that schools submit a balance sheet, income and expense statements, and other financial documentation prepared by a third party accountant; and
• allows individuals claiming deceptive trade practice to file a complaint first with the board, where under current law the individual must first exhaust any complaint and appeals process provided by the school.

The following persons testified:

01:39 PM -- Dr. Matt Gianneschi, Deputy Executive Director, DHE, testified in support of the bill. Dr. Gianneschi stated that the bill is a DHE initiative and discussed legislation that was passed during the 2012 session concerning private occupational school regulation. He stated that the Colorado Commission on Higher Education (CCHE) oversees all degree-granting institutions of higher education, and that the board regulates private occupational schools and trade schools. He discussed inconsistencies that exist currently with the way that private occupational schools are regulated and stated that the bill will resolve those inconsistencies. He provided a handout to the committee members (Attachment A).
13HseEd0408AttachA.pdf13HseEd0408AttachA.pdf

01:41 PM -- Lorna Candler, Director of DPOS, DHE, testified in support of the bill. Ms. Candler stated that the bill provides consumer protection and minimum standards for schools to operate under, and ensures good business practice. She stated that the bill allows students to speak with the board directly if they have a complaint, and that the bill protects students from deceptive sales and trade practices. She stated that nonprofit schools are traditionally allowed to be authorized by the state, and that in order to receive Title IV funds, nonprofit private occupational schools must be authorized by the state. She stated that current law exempts nonprofit private occupational schools from being regulated by DPOS, but that the bill removes the exemption. Ms. Candler and Dr. Gianneschi responded to questions from the committee.

01:53 PM -- Steve Durham, Executive Director of the Colorado Association of Career Colleges and Schools (CACCS), testified in support of the bill. Mr. Durham stated that CACCS believes that it is the activity of the schools that should be regulated, not the tax status of the schools. He stated that the bill ensures that the proper bonds are in place for all private occupational schools, and ensures that all schools offering occupational education are treated the same. Mr. Durham responded to questions from the committee.
BILL:HB13-1263
TIME: 01:58:41 PM
MOVED:Court
MOTION:Refer House Bill 13-1263 to the Committee of the Whole. The motion passed on a vote of 9-4.
SECONDED:Fields
VOTE
Buckner
Yes
Court
Yes
Everett
No
Fields
Yes
Holbert
No
Landgraf
No
Murray
Yes
Pettersen
Yes
Priola
No
Wilson
Yes
Young
Yes
Peniston
Yes
Hamner
Yes
Final YES: 9 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS