This information is prepared as an informational service only and should not be relied upon as an official record of action taken by the Colorado General Assembly.
Second Regular Session
Sixty-first General Assembly
LLS NO. 980023.01 JAP
HOUSE BILL 981031
STATE OF COLORADO
BY REPRESENTATIVES Allen, Dean, and Schauer;
also SENATORS B. Alexander, Arnold, Chlouber, and Pascoe.
REREVISED
EDUCATION
A BILL FOR AN ACT
CONCERNING THE PRIVATE OCCUPATIONAL SCHOOL DIVISION.
Bill Summary
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
adopted.)
Transfers the following existing duties from the division to the board:
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 2360701, Colorado Revised Statutes, is amended to read:
2360701. Legislative declaration.
The general assembly hereby finds and declares that, pursuant
to article 59 of title 12, C.R.S., there is a demonstrated need
for statewide administration of private occupational schools in
order to provide standards for, foster improvements of, and protect
the citizens of this state against fraudulent or substandard educational
services in private occupational schools. Therefore, the general
assembly has determined that the overall responsibility for such
administration and for ensuring compliance with article 59 of
title 12, C.R.S., should be placed with a division which has only
this responsibility. subject to the
final review and approval of the executive director of the department
of higher education, appointed pursuant to section 231110
(2).
SECTION 2. 2360702 (1), Colorado Revised Statutes, is amended to read:
2360702. Definitions. As used in this part 7, unless the context otherwise requires:
(1) "Advisory
committee" "BOARD"
means the private occupational school policy
advisory committee BOARD created
in section 2360704.
SECTION 3. 2360704, Colorado Revised Statutes, is REPEALED AND REENACTED, WITH AMENDMENTS, to read:
2360704. Private occupational school board established membership. (1) EFFECTIVE JUNE 30, 1998, THE PRIVATE OCCUPATIONAL SCHOOL POLICY ADVISORY COMMITTEE IS ABOLISHED, AND THE TERMS OF MEMBERS OF THE ADVISORY COMMITTEE SERVING AS SUCH IMMEDIATELY PRIOR TO JUNE 30, 1998, ARE TERMINATED.
(2) EFFECTIVE JULY 1, 1998, THERE IS ESTABLISHED, IN THE PRIVATE OCCUPATIONAL SCHOOL DIVISION, THE PRIVATE OCCUPATIONAL SCHOOL BOARD WHICH SHALL ADVISE THE DIRECTOR ON THE ADMINISTRATION OF THIS PART 7 AND SHALL HAVE THE POWERS AND DUTIES SPECIFIED IN SECTION 2360704.5. THE BOARD SHALL EXERCISE ITS POWERS AND PERFORM ITS DUTIES AND FUNCTIONS SPECIFIED IN THIS PART 7 AS IF THE SAME WERE TRANSFERRED TO THE DEPARTMENT BY A TYPE 1 TRANSFER, AS SUCH TRANSFER IS DEFINED IN THE "ADMINISTRATIVE ORGANIZATION ACT OF 1968", ARTICLE 1 OF TITLE 24, C.R.S.
(3) THE BOARD SHALL CONSIST OF SEVEN MEMBERS APPOINTED BY THE GOVERNOR, WITH THE CONSENT OF THE SENATE, AS FOLLOWS:
(a) THREE MEMBERS SHALL BE OWNERS OR OPERATORS OF PRIVATE OCCUPATIONAL SCHOOLS THAT RECEIVE TITLE IV FUNDS;
(b) FOUR MEMBERS SHALL BE REPRESENTATIVES OF THE GENERAL PUBLIC, AT LEAST ONE OF WHOM IS EMPLOYED BY A LENDING INSTITUTION LOCATED IN COLORADO AND IS FAMILIAR WITH THE COLORADO STUDENT LOAN PROGRAM AND AT LEAST TWO OF WHOM ARE OWNERS OR OPERATORS OF BUSINESSES WITHIN COLORADO THAT EMPLOY STUDENTS WHO ARE ENROLLED IN SCHOOLS THAT ARE SUBJECT TO ADMINISTRATION BY THE PRIVATE OCCUPATIONAL SCHOOL DIVISION.
(4) NO APPOINTED MEMBER SHALL BE AN EMPLOYEE OF ANY JUNIOR COLLEGE, COMMUNITY OR TECHNICAL COLLEGE, SCHOOL DISTRICT, OR PUBLIC AGENCY THAT RECEIVES VOCATIONAL FUNDS ALLOCATED BY ANY STATE AGENCY.
(5) THE BOARD MEMBERS SHALL SERVE FOURYEAR TERMS; EXCEPT THAT, OF THE MEMBERS FIRST APPOINTED TO THE BOARD, THREE MEMBERS TO BE SELECTED BY THE GOVERNOR SHALL SERVE TWOYEAR TERMS. NO MEMBER SHALL SERVE MORE THAN TWO CONSECUTIVE FOURYEAR TERMS.
(6) THE BOARD SHALL HOLD REGULAR MEETINGS AT SUCH TIMES AS IT MAY DEEM APPROPRIATE, BUT IT SHALL NOT MEET LESS THAN FOUR TIMES PER YEAR.
(7) BOARD MEMBERS SHALL BE PAID A PER DIEM OF THIRTYFIVE DOLLARS FOR EACH DAY ON WHICH THE BOARD MEETS AND THEIR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE CONDUCT OF OFFICIAL BUSINESS.
(8) THE DIVISION SHALL PROVIDE ANY NECESSARY STAFF ASSISTANCE FOR THE BOARD.
SECTION 4. Part 7 of article 60 of title 23, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
2360704.5. Duties and powers of the board. THE BOARD SHALL HAVE THE POWERS AND DUTIES SPECIFIED IN SECTION 1259105.3, C.R.S.
SECTION 5. 2360705, Colorado Revised Statutes, is amended to read:
2360705. Duties and powers
of the division subject to the approval of the executive director.
The division shall exercise all of the powers and duties set forth
in section 1259105, C.R.S. and
shall be responsible for administering and scrutinizing all aspects
of the private occupational schools in the state in accordance
with article 59 of title 12, C.R.S.
The executive director shall review and approve, consistent with
the institutional role and statewide needs, any action taken by
the division pursuant to the powers and duties set forth in section
1259105, C.R.S.; including
but not limited to establishing minimum criteria for applicants
for certificates of approval and agents' permits, granting accreditation
to private occupational schools, promulgating rules and regulations,
and granting or denying certificates of approval;
except that the participation of the executive director shall
not be required in any notice of noncompliance
proceeding where a denial of an application for or revocation
of a certificate of approval or an agent's permit by the division
is made pursuant to section 1259112 or 1259113,
C.R.S. ACTION TAKEN BY THE BOARD.
SECTION 6. 1259102 (1) (d), Colorado Revised Statutes, is amended to read:
1259102. Legislative declaration. (1) It is the purpose of this article to provide standards for and to foster and improve private occupational schools and their educational services and to protect the citizens of this state against fraudulent or substandard private occupational schools by:
(d) Providing certain rights and remedies to the private occupational school division, THE PRIVATE OCCUPATIONAL SCHOOL BOARD CREATED IN SECTION 2360704, C.R.S., and the consuming public necessary to effectuate the purposes of this article;
SECTION 7. 1259103, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:
1259103. Definitions. As used in this article, unless the context otherwise requires:
(2.6) "BOARD" MEANS THE PRIVATE OCCUPATIONAL SCHOOL BOARD CREATED IN SECTION 2360704, C.R.S.
SECTION 8. 1259105, Colorado Revised Statutes, is amended to read:
1259105. Powers and duties of division. (1) The division shall have, in addition to the powers and duties now vested therein by law, the following powers and duties:
(a) To establish
minimum criteria in conformity with section 1259106,
including quality of education, ethical business practices, and
fiscal responsibility, which an applicant for a certificate of
approval shall meet before such certificate of approval may be
issued and continued in effect. The criteria to be developed under
this section shall be such as will effectuate the purposes of
this article.
(b) To establish
minimum criteria in conformity with section 1259106
which an applicant for an agent's permit shall meet before such
agent's permit may be issued and continued in effect. The criteria
to be developed under this section shall be such as will effectuate
the purposes of this article.
(c) To receive,
investigate, and evaluate, as it deems necessary, and act upon
applications for certificates of approval, agents' permits, and
changes of ownership;
(d) To publish a list of schools and maintain a list of agents authorized to operate in this state under the provisions of this article;
(e) To receive or cause to be maintained as a permanent file, in conformity with section 1259119, copies of educational, financial, and other records;
(f) To require
the posting of appropriate notices on the school premises notifying
students of any school closure by operation of law or otherwise;
(g) To investigate,
as it deems necessary, any entity subject to, or reasonably believed
by the division to be subject to, the jurisdiction of this article
and, in connection therewith, to subpoena any persons, books,
records, or documents pertaining to such investigation, to require
answers in writing, under oath, to questions propounded by the
division, and to administer an oath or affirmation to any person
in connection with any such investigation. Such investigation
may include the physical inspection of school facilities and records.
Said subpoena shall be enforceable by any court of record of this
state.
(h) To deny
or revoke permits of agents of any outofstate school
determined not to be in compliance with this article;
(i) To appoint
administrative law judges to conduct hearings on any matter within
the jurisdiction of the division, which shall include the conduct
of hearings in aid of any investigation or inquiry pursuant to
paragraph (g) of this subsection (1);
(j) To grant
accreditation to schools which make application and which meet
the standards of accreditation established by the division, which
shall include at least the standards of accreditation required
for recognition of an accrediting authority for private occupational
schools by the United States office of education. Accreditation
shall be voluntary and shall not affect, in any manner, a certificate
of approval issued by the division as provided in this article.
A school making application for accreditation shall pay all reasonable
expenses incurred by the division, including any payments to evaluators,
in the performance of the accreditation evaluation or in connection
with the continuation of any accreditation received under this
paragraph (j).
(k) To negotiate and enter into interstate
reciprocity agreements with similar agencies in other states whenever,
in the judgment of the division AND THE BOARD, such agreements
are or will be helpful in effectuating the purposes of this article;
except that nothing contained in any such reciprocity agreement
shall be construed as limiting the division's powers, duties,
and responsibilities with respect to investigating or acting upon
any application for a certificate of approval for a private occupational
school or an application for issuance of or renewal of any agent's
permit or with respect to the enforcement of any provision of
this article or any of the rules or
regulations promulgated under this
article.
(l) To promulgate
rules and regulations and to adopt procedures necessary or appropriate
for the conduct of its work and the implementation of this article;
(m) To exercise
other powers and duties implied, but not enumerated, in this section
which, in the judgment of the division, are deemed necessary in
order to carry out the provisions of this article;
(n) To establish
educational standards and requirements for the awarding of appropriate
educational credentials by private occupational schools; except
that no private occupational school may award an associate degree
unless it has met the total and general course hour standards
established by the state board.
SECTION 9. Article 59 of title 12, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
1259105.3. Powers and duties of board. (1) THE BOARD SHALL HAVE THE FOLLOWING POWERS AND DUTIES:
(a) TO ESTABLISH MINIMUM CRITERIA IN CONFORMITY WITH SECTION 1259106, INCLUDING QUALITY OF EDUCATION, ETHICAL BUSINESS PRACTICES, AND FISCAL RESPONSIBILITY, WHICH AN APPLICANT FOR A CERTIFICATE OF APPROVAL SHALL MEET BEFORE SUCH CERTIFICATE OF APPROVAL MAY BE ISSUED AND CONTINUED IN EFFECT. THE CRITERIA TO BE DEVELOPED UNDER THIS SECTION SHALL BE SUCH AS WILL EFFECTUATE THE PURPOSES OF THIS ARTICLE.
(b) TO ESTABLISH MINIMUM CRITERIA IN CONFORMITY WITH SECTION 1259106 WHICH AN APPLICANT FOR AN AGENT'S PERMIT SHALL MEET BEFORE SUCH AGENT'S PERMIT MAY BE ISSUED AND CONTINUED IN EFFECT. THE CRITERIA TO BE DEVELOPED UNDER THIS SECTION SHALL BE SUCH AS WILL EFFECTUATE THE PURPOSES OF THIS ARTICLE.
(c) TO CONSULT WITH THE DIVISION REGARDING INTERSTATE RECIPROCITY AGREEMENTS;
(d) TO RECEIVE, INVESTIGATE, AND EVALUATE, AS IT DEEMS NECESSARY, AND ACT UPON APPLICATIONS FOR CERTIFICATES OF APPROVAL, AGENTS' PERMITS, AND CHANGES OF OWNERSHIP;
(e) TO REQUIRE THE POSTING OF APPROPRIATE NOTICES ON THE SCHOOL PREMISES NOTIFYING STUDENTS OF ANY SCHOOL CLOSURE BY OPERATION OF LAW OR OTHERWISE;
(f) TO INVESTIGATE, AS IT DEEMS NECESSARY, ANY ENTITY SUBJECT TO, OR REASONABLY BELIEVED BY THE BOARD TO BE SUBJECT TO, THE JURISDICTION OF THIS ARTICLE AND, IN CONNECTION THEREWITH, TO SUBPOENA ANY PERSONS, BOOKS, RECORDS, OR DOCUMENTS PERTAINING TO SUCH INVESTIGATION, TO REQUIRE ANSWERS IN WRITING, UNDER OATH, TO QUESTIONS PROPOUNDED BY THE BOARD, AND TO ADMINISTER AN OATH OR AFFIRMATION TO ANY PERSON IN CONNECTION WITH ANY SUCH INVESTIGATION. SUCH INVESTIGATION MAY INCLUDE THE PHYSICAL INSPECTION OF SCHOOL FACILITIES AND RECORDS. SAID SUBPOENA SHALL BE ENFORCEABLE BY ANY COURT OF RECORD OF THIS STATE.
(g) TO DENY OR REVOKE THE AGENT'S PERMIT OF AN AGENT OF AN OUTOFSTATE SCHOOL DETERMINED NOT TO BE IN COMPLIANCE WITH THIS ARTICLE;
(h) TO APPOINT ADMINISTRATIVE LAW JUDGES TO CONDUCT HEARINGS ON ANY MATTER WITHIN THE JURISDICTION OF THE BOARD, WHICH SHALL INCLUDE THE CONDUCT OF HEARINGS IN AID OF ANY INVESTIGATION OR INQUIRY PURSUANT TO PARAGRAPH (f) OF THIS SUBSECTION (1);
(i) TO GRANT ACCREDITATION TO SCHOOLS THAT MAKE APPLICATION AND THAT MEET THE STANDARDS OF ACCREDITATION ESTABLISHED BY THE BOARD, WHICH SHALL INCLUDE AT LEAST THE STANDARDS OF ACCREDITATION REQUIRED FOR RECOGNITION OF AN ACCREDITING AUTHORITY FOR PRIVATE OCCUPATIONAL SCHOOLS BY THE UNITED STATES OFFICE OF EDUCATION. ACCREDITATION SHALL BE VOLUNTARY AND SHALL NOT AFFECT, IN ANY MANNER, A CERTIFICATE OF APPROVAL ISSUED BY THE BOARD AS PROVIDED IN THIS ARTICLE. A SCHOOL MAKING APPLICATION FOR ACCREDITATION SHALL PAY ALL REASONABLE EXPENSES INCURRED BY THE BOARD, INCLUDING ANY PAYMENTS TO EVALUATORS, IN THE PERFORMANCE OF THE ACCREDITATION EVALUATION OR IN CONNECTION WITH THE CONTINUATION OF ANY ACCREDITATION RECEIVED UNDER THIS PARAGRAPH (i).
(j) TO PROMULGATE RULES AND TO ADOPT PROCEDURES NECESSARY OR APPROPRIATE FOR THE CONDUCT OF ITS WORK AND THE IMPLEMENTATION OF THIS ARTICLE;
(k) TO ESTABLISH EDUCATIONAL STANDARDS AND REQUIREMENTS FOR THE AWARDING OF APPROPRIATE EDUCATIONAL CREDENTIALS BY PRIVATE OCCUPATIONAL SCHOOLS;
(l) TO EXERCISE OTHER POWERS AND DUTIES IMPLIED, BUT NOT ENUMERATED, IN THIS SECTION WHICH, IN THE JUDGMENT OF THE BOARD, ARE NECESSARY IN ORDER TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
SECTION 10. 1259105.5, Colorado Revised Statutes, is amended to read:
1259105.5. Occupational
credentials for instructors of barbering and cosmetology.
The holder of a valid current Colorado license to practice as
an instructor of barbering or cosmetology prior to November 1,
1990, shall be awarded a current occupational credential by the
state
board as prescribed by the rules and
regulations concerning private occupational
schools promulgated pursuant to section
1259105 (1) (l) SECTION
1259105.3 (1) (j). All persons awarded such occupational
credential pursuant to this section shall meet the requirements
of the state
board for renewal of the credential.
SECTION 11. The introductory portion to 1259106 (1) and 1259106 (1) (f), (1) (o), (1) (p), (1) (r), and (2), Colorado Revised Statutes, are amended to read:
1259106. Minimum standards.
(1) In establishing the criteria required by section
1259105 (1) (a), (1) (b), and (1) (n)
SECTION 1259105.3 (1) (a), (1) (b), AND (1) (k), the
division
BOARD shall observe and require compliance with at least the following
minimum standards for all schools:
(f) That the school provides each prospective
student with a school catalog and other printed information describing
the educational services offered and describing entrance requirements,
program objectives, length of programs, schedule of tuitions,
fees, all other charges and expenses necessary for the completion
of the program of study, cancellation and refund policies, and
such other material facts concerning the school and the program
of instruction that are likely to affect the decision of a student
to enroll therein as required by the division
BOARD and that such information is provided to a prospective student
prior to the commencement of classes and the execution of any
enrollment agreement or contract;
(o) That an outofstate school
shall maintain records which include, but are not limited to,
a list of the name and address of each student enrolled from within
this state and that such records shall be made available to the
division
BOARD upon request;
(p) That the school shall submit to the
division
BOARD the name and Colorado address of a designated agent upon
whom any process, notice, or demand may be served and that such
agent shall be maintained continuously. Nothing contained in this
section shall limit or affect the right to serve any process,
notice, or demand required or permitted by law to be served upon
a foreign corporation in any other manner now or hereafter permitted
by law.
(r) That an agent shall represent only
a school which
THAT meets the minimum standards set forth in this section and
the criteria established pursuant to section
1259105 SECTION 1259105.3;
(2) A school that is accredited by an
accrediting association officially recognized by the United States
education department or by the division
BOARD may fulfill the requirements of paragraphs (c) to (o) and
(s) of subsection (1) of this section by maintaining its accreditation
with its appropriate accrediting association as long as the accrediting
standards meet or exceed the minimum standards set forth in this
article.
SECTION 12. 1259107 (1) (b) and (1) (e), Colorado Revised Statutes, are amended to read:
1259107. Prohibitions. (1) No entity of whatever kind, alone or in concert with others, shall:
(b) Offer educational services in or grant
educational credentials from a school located within or without
this state unless said agent holds a valid agent's permit issued
pursuant to the provisions of this article; except that the division
BOARD may promulgate rules and regulations
to permit the rendering of legitimate public information services
without such permit;
(e) Award associate
degrees unless such entity has met the total and general course
hour standards established by the state board.
SECTION 13. The introductory portion to 1259108 (1) and 1259108 (1) (a), (3), and (5), Colorado Revised Statutes, are amended to read:
1259108. Application for
certificate of approval. (1) Any
entity desiring to operate a private occupational school in this
state shall make application for a certificate of approval to
the division
BOARD upon forms to be provided by the division
BOARD. Said application shall include at least the following:
(a) A catalog published or proposed to
be published by the school containing the information specified
in the criteria promulgated by the division
BOARD;
(3) The division
BOARD shall not be required to act upon an application until such
time as an application is submitted as set forth in this section.
(5) The division
BOARD shall not be required to act upon an application submitted
by a school whose certificate of approval has been revoked or
denied by a final nonappealable order of the division
BOARD for a period of twelve months subsequent to said revocation
or denial. Notwithstanding that an order of revocation or denial
may be subject to judicial review, said school shall otherwise
comply with and be subject to the provisions of this article;
except that said school shall not be required to submit an application
as required by this section.
SECTION 14. 1259109 (1) and (3), Colorado Revised Statutes, are amended to read:
1259109. Issuance of certificate
of approval. (1) Following
the review and evaluation of an application for a certificate
of approval and any further information required by the division
BOARD to be submitted by the applicant and such investigation
and appraisal of the applicant as the division
BOARD deems necessary or appropriate, the division
BOARD shall either grant or deny a certificate of approval to
the applicant. A certificate of approval shall be issued to the
applicant in the name of the school and shall state in clear and
conspicuous language the name and address of the school, the date
of issuance, and the term of approval.
(3) At any time within the period of a
certificate of approval, the division
BOARD may require the school to submit supplementary documentation
or information deemed necessary to enable the division
BOARD to determine whether said school is continuing to be operated
in compliance with the provisions of this article.
SECTION 15. 1259110 (1) and (2), Colorado Revised Statutes, are amended to read:
1259110. Application for
change of ownership. (1) In
the event of a change of ownership of a school, the seller, prior
to the effective date of the change of ownership, shall notify
the division
BOARD in writing, and the buyer, prior to or within thirty days
after the change of ownership, shall make application for approval
of the change of ownership upon forms to be provided and in a
manner prescribed by the division
BOARD. In the event of a failure to do so, the school's certificate
of approval shall be suspended by operation of law until such
application has been received and approved by the division
BOARD as provided in this section.
(2) Following the review and evaluation
of an application and any further information required by the
division
BOARD to be submitted by the applicant and such investigation
and appraisal of an applicant as the division
BOARD deems necessary or appropriate, the division
BOARD shall either grant or deny the application. Denial of an
application shall be in the same manner as set forth in section
1259112 for a denial of an application for a certificate
of approval; except that the division
BOARD shall not be required to submit a notice of noncompliance.
SECTION 16. The introductory portion to 1259111 (2) (a) and 1259111 (2) (b), (2) (d), (2) (h), and (2) (i), Colorado Revised Statutes, are amended to read:
1259111. Agent's permits.
(2) Outofstate schools. (a) Any
person desiring to engage in the performance of the duties as
an agent within this state, for a school located outside this
state, shall make application through the school to the division
BOARD upon forms to be provided by the division. Said application
shall include the following:
(b) An application submitted by an applicant
who intends to represent a school located outside this state shall
not be acted upon until any information regarding said school
which is required to be submitted by the division
BOARD, including the name and Colorado address of a designated
agent upon whom any process, notice, or demand may be served,
has been received.
(d) Following the review and evaluation
of an application and any further information required by the
division
BOARD to be submitted by the applicant and such investigation
and appraisal of an applicant as the division
BOARD deems necessary or appropriate, the division
BOARD shall recommend to the executive director either a grant
or denial of an agent's permit to the applicant.
(h) At least sixty days prior to the expiration
of an agent's permit, the agent shall complete and file with the
division
BOARD an application form and fee for renewal of said permit.
Said application shall be reviewed and acted upon as provided
in this article. If such application is not submitted as set forth
in this section, the agent's existing permit shall expire on July
1.
(i) The division
BOARD shall not be required to act upon an application submitted
by an agent whose permit has been revoked or denied by a final
nonappealable order of the division
BOARD for a period of twelve months subsequent to said revocation
or denial. Notwithstanding that an order of revocation or denial
shall be subject to judicial review, said agent shall otherwise
comply with and be subject to the provisions of this article;
except that said agent shall not be required to submit an application
as required by this section.
SECTION 17. 1259112 (1), (2), and (3), Colorado Revised Statutes, are amended to read:
1259112. Denial of application
for certificate of approval or agent's permit.
(1) If the division
BOARD, upon review of an application for a certificate of approval
or for an agent's permit, determines upon reasonable belief that
the applicant fails to meet any one or more of the criteria established
pursuant to this article, the division
BOARD shall submit to the applicant a notice of noncompliance
setting forth the reasons therefor in writing. The notice shall
set forth a period of time within which the applicant may submit
written data, arguments, views, or information with respect to
the reasons set forth in the notice and during which time the
applicant shall also be afforded the opportunity to eliminate
the reason for said notice.
(2) The division
BOARD shall consider such written data, arguments, views, or information
submitted and the steps taken by the applicant to comply and shall
thereafter determine upon reasonable belief whether a hearing
shall be conducted for the purpose of denying said application.
(3) An application for a certificate of
approval or an agent's permit may also be denied by the division
BOARD if the applicant has furnished false or misleading written
or oral statements, documents, or other representations to the
division
BOARD with the intent to mislead or conceal the truth of any matter
to be considered by the division
BOARD as a factor in approving the application.
SECTION 18. 1259113, Colorado Revised Statutes, is amended to read:
1259113. Revocation of
certificate of approval and agent's permit.
(1) If the division
BOARD determines upon reasonable belief that the holder of a certificate
of approval or an agent's permit has violated or is violating
any one or more of the criteria established pursuant to this article,
the division
BOARD or its authorized designee shall submit to such holder or
a school's designated agent for service of process a notice of
noncompliance setting forth the reasons therefor in writing. The
notice shall set forth a period of time within which the applicant
may submit written data, views, arguments, or information with
respect to the reasons set forth in the notice and during which
time such holder shall also be afforded the opportunity to eliminate
the reason for said notice.
(2) The division
BOARD shall consider such written data, arguments, views, or information
submitted and the steps taken by such holder to comply and shall
thereafter determine upon reasonable belief whether a hearing
shall be conducted for the purpose of revoking the certificate
of approval or an agent's permit.
(3) If the division
BOARD has reasonable grounds to believe and finds that such holder
has willfully and deliberately violated the criteria established
pursuant to this article or that the public health, safety, or
welfare imperatively requires emergency action and incorporates
such findings in its order, it may summarily suspend the certificate
of approval or agent's permit pending a hearing which shall be
promptly instituted and determined.
(4) A certificate of approval or an agent's
permit may also be revoked by the division
BOARD if the holder thereof has furnished false or misleading
written or oral statements, documents, or other representations
to the division
BOARD with the intent to mislead or conceal the truth of any matter
considered by the division
BOARD as a factor in approving the application for a certificate
of approval or an agent's permit or for continuing in effect the
certificate of approval or an agent's permit.
(5) A certificate of approval may be revoked
by the division
BOARD if the holder thereof has had its surety bond cancelled
and has not replaced it within fifteen days prior to the effective
date of such bond termination.
SECTION 19. 1259114 (1) (d) and (3), Colorado Revised Statutes, are amended to read:
1259114. Refund policy. (1) As a condition for granting a certificate of approval or an agent's permit to represent a school located outside this state, a school shall maintain a policy for the refund of tuition and fees in the event, and within thirty days of the date, a student fails to enter the course, withdraws, or has been discontinued therefrom at any time prior to completion, and such policy shall provide for at least the following:
(d) That the school use a method of determining
the official termination date of the student which complies with
the state board's
established criteria OF THE STATE BOARD FOR COMMUNITY COLLEGES
AND OCCUPATIONAL EDUCATION;
(3) The division
BOARD may require a school to submit to the division
BOARD a notice of each tuition refund paid or contract cancelled
in the manner and to the extent determined by the division
BOARD.
SECTION 20. 1259115 (2), (6), (7) (a), (7) (b), (7) (e), (7) (f), (8), (9), (10), (11), (12), and (13), Colorado Revised Statutes, are amended to read:
1259115. Bonds.
(2) At the time application is made for a certificate
of approval, the division
BOARD shall require an applicant to file with the division a surety
bond in such sum as determined pursuant to subsection (3) of this
section. Said bond shall be executed by the applicant as principal
and by a surety company authorized to do business in this state.
The bond shall be conditioned to provide indemnification to any
student or enrollee or to any parent or guardian of such student
or enrollee determined by the division
BOARD to have suffered loss of tuition or any fees as a result
of any act or practice which
THAT is a violation of any minimum standard as set forth in this
article or any criterion established pursuant thereto by a school
or its agents and to provide trainout for students enrolled
in an approved school ceasing operation as provided in subsection
(7) of this section. The bond shall be continuous unless said
surety is released as set forth in this section.
(6) (a) A student, enrollee, or parent
or guardian of the student or enrollee claiming loss of tuition
or fees may file a claim with the division
BOARD if the claim results from an act or practice that violates
a minimum standard or criterion established pursuant to section
1259106. Such claims that are filed with the division
BOARD shall constitute public records and are subject to the provisions
of article 72 of title 24, C.R.S.; except that no such claims
records shall be made public if such release would violate any
federal privacy law.
(b) Notwithstanding the provisions of
paragraph (a) of this subsection (6), the division
BOARD shall not consider any claim that is filed more than two
years after the date the student discontinues his or her training
at the school.
(7) (a) In the event that a private
occupational school ceases operation, the division
BOARD shall be authorized to make demand on the surety of such
school upon the demand for a refund by a student or the implementation
of a trainout for the students of such school, and the surety
shall pay the claim due in a timely manner. To the extent practicable,
the division
BOARD shall use the amount of the bond to provide trainout
for students of the private occupational school ceasing operation
through a contract with another approved private occupational
school, a community college, an area vocational school, or any
other training arrangement acceptable to the division
BOARD. The trainout provided to a student shall replace
the original enrollment agreement or contract between the student
and the private occupational school ceasing operation; except
that tuition and fee payments shall be made by the student as
required by the original enrollment agreement or contract.
(b) Any student enrolled in a private
occupational school ceasing operation who declines the trainout
required to be offered pursuant to paragraph (a) of this subsection
(7) may file a claim with the division
BOARD for the student's prorated share of the prepaid, unearned
tuition and fees paid by such student subject to the limitations
of paragraph (c) of this subsection (7). No subsequent payment
shall be made to a student, unless proof of satisfaction of any
prior debt to a financial institution is submitted in accordance
with the department of higher education
BOARD rules and regulations
concerning the administration of this section.
(e) The division
BOARD shall be designated as the trustee for all prepaid, unearned
tuition and fees, student loans, pell grants, and other student
financial aid assistance in the event that an approved private
occupational school ceases operation.
(f) The division
BOARD shall determine whether the offering of a trainout
for students enrolled in an approved private occupational school
ceasing operation is practicable without federal government designation
of the division
BOARD as trustee for student loans, pell grants, and other student
financial aid assistance pursuant to paragraph (e) of this subsection
(7).
(8) At the time that application is made
for an agent's permit to represent a school located outside this
state, said application shall be accompanied by a surety bond
in the sum of fifty thousand dollars. Said bond shall be executed
by the applicant as principal and by a surety company authorized
to do business in this state. The bond shall be conditioned to
provide indemnification to any student, or enrollee, or his OR
HER parent or guardian determined by the division
BOARD to have suffered loss of tuition or any fees as a result
of any act or practice which
THAT is a violation of any deceptive trade or sales practice as
set forth in this article or any criteria established pursuant
thereto by said agent. Regardless of the number of years that
said bond is in force, the aggregate liability of the surety thereon
shall in no event exceed the penal sum of the bond. The bond shall
be continuous, unless said surety is released as set forth in
this section, and may be blanket in form. Any student or enrollee
or his OR HER parent or guardian claiming loss of tuition or any
fees as a result of any deceptive trade or sales practice shall
file a notarized claim with the division
BOARD. In no event, however, shall the division
BOARD consider any such complaint filed one hundred eighty days
after the date the student discontinued his OR HER training at
said school.
(9) Except with respect to a claim for
tuition and fees made by a student enrolled in an approved private
occupational school ceasing operation, the division
BOARD shall conduct a hearing for the purpose of determining any
loss of tuition or fees, and, if any claim is found to be correct
and due the claimant, the division
BOARD shall make demand upon the principal and the surety on the
bond. If the principal or surety fails or refuses to pay the claim
due, the division
BOARD shall commence an action on such bond in any court of competent
jurisdiction; except that no such action may be filed more than
six years subsequent to the date of any violation which
THAT gives rise to the right to file a claim pursuant to this
section. A claim for tuition and fees made by a student enrolled
in an approved private occupational school ceasing operation shall
be handled in the manner provided in subsection (7) of this section.
(10) A certificate of approval or an agent's
permit shall be suspended by operation of law when said school
or agent is no longer covered by a surety bond as required by
this section. The division
BOARD shall give written notice to said school or agent, or both,
at the lastknown address, at least fortyfive days
prior to the release of said surety, to the effect that said certificate
of approval or agent's permit shall be suspended by operation
of law until another surety bond is filed in the same manner and
like amount as the bond being released.
(11) A surety on any bond filed under
the provisions of this section shall be released therefrom after
such surety serves written notice thereof to the division
BOARD at least sixty days prior to such release. Said release
shall not discharge or otherwise affect any claim filed by any
student or enrollee or his OR HER parent or guardian for loss
of tuition or any fees which
THAT occurred while said bond was in effect or which occurred
under any note or contract executed during any period of time
when said bond was in effect, except when another bond is filed
in a like amount and provides indemnification for any such loss.
(12) (a) The division
BOARD shall allow, at a reasonable price, alternate surety methods
in lieu of the bonding requirements of this section. The alternate
sureties shall be conditioned to provide indemnification to any
student or enrollee or to any parent or guardian of such student
or enrollee for any loss of tuition or any fees as a result of
any act or practice which
THAT is a violation of this article and to provide trainout
for students enrolled in an approved school ceasing operation
as provided in subsection (7) of this section. In the event that
a school covered by an alternate surety ceases operation, the
division
BOARD shall act in the manner provided in subsection (7) of this
section.
(b) Prior to September 1, 1991, and each
year thereafter, any alternate surety allowed by the division
BOARD shall be required to contract for an independent financial
audit. Such audit shall be included in a report to the division
BOARD due by January 1 of the following year. The division
BOARD may disapprove an alternate surety if it deems that such
surety is not able to provide students with the indemnification
and trainout required by this section.
(13) For the purposes of this section,
"school" and "private occupational school"
shall include a forprofit private college or university,
as defined in section 232102 (3), C.R.S., in which
the majority of students are enrolled in courses and programs
which
THAT are occupational in nature, as defined by the division
BOARD.
SECTION 21. 1259116 (1), (2), (3) (a), and (3) (b), Colorado Revised Statutes, are amended to read:
1259116. Fees private
occupational schools fund annual adjustment.
(1) The division
BOARD by rule shall establish fees for the direct and indirect
costs of the administration of this article, which fees shall
accompany any application for a certificate of approval for a
new school or for a school other than a new school, for an instate
or outofstate agent's permit, or for a change of ownership.
All fees collected shall be transmitted to the state treasurer,
who shall credit the same to the private occupational schools
fund, which fund is hereby created. The moneys in the fund shall
be subject to annual appropriation by the general assembly for
the direct and indirect costs of the administration of this article.
All moneys credited to the fund shall be used for the direct and
indirect costs of the administration of this article and shall
not be deposited in or transferred to the general fund of this
state or to any other fund.
(2) In addition to the fees specified
in subsection (1) of this section, the division
BOARD by rule shall establish and receive fees for reviewing the
qualifications of and for issuing appropriate credentials to instructors
and administrators pursuant to section 1259106 (1)
(e). Such fees shall be collected and administered in the same
manner as the fees specified in subsection (1) of this section.
(3) (a) The division
BOARD shall propose, as part of its
THE DIVISION'S annual budget request, an adjustment in the amount
of the fees that it is authorized to collect pursuant to this
section. The budget request and the adjusted fees shall reflect
the direct and indirect costs of administering this article.
(b) Based upon the appropriation made
and subject to the approval of the Colorado commission on higher
education, the division
BOARD shall adjust its fees so that the revenue generated from
said fees approximates the direct and indirect costs of administering
this article. The adjusted fees shall remain in effect for the
fiscal year for which the budget request applies.
SECTION 220 1259118, Colorado Revised Statutes, is amended to read:
1259118. Complaints of
deceptive trade or sales practices. (1) A
person claiming loss of tuition
or fees PECUNIARY LOSS
as a result of a deceptive trade or sales practice, pursuant to
section 1259117, by a school or agent may
SHALL file with the division
BOARD a written complaint against the school or agent. The complaint
shall set forth the alleged violation and other relevant information
as may be required by the division
BOARD. A complaint filed under this section is a public record
subject to the provisions of article 72 of title 24, C.R.S., and
shall be filed within two years after the student discontinues
his or her training at the school or at any time prior to the
commencement of training.
(2) The division
BOARD shall investigate any such complaint and thereafter may
consider such complaint at a hearing. If, upon all the evidence
at a hearing, the division
BOARD finds that a school or agent has engaged in or is engaging
in any deceptive trade or sales practice, the division
BOARD may issue and cause to be served upon such school, such
agent, or the designated agent for service of process, notice,
or demand an order requiring such school or agent to cease and
desist from such practice. The division
BOARD may obtain an order for enforcement of its order in the
district court pursuant to section 244106, C.R.S.
(3) If the division
BOARD finds that the complainant or class of complainants has
suffered loss of tuition or fees
PECUNIARY LOSS as a result of such practice,
the division
BOARD, at its discretion, may award the complainant or class of
complainants full restitution for such loss. The division
BOARD may also commence a civil action against a school or agent
believed by the division
BOARD to have caused a complainant or class of complainants to
suffer a loss of tuition or fees
PECUNIARY LOSS as a result of any deceptive
trade or sales practice. Upon a finding that such complainant
or class of complainants has suffered a
loss of tuition or fees PECUNIARY
LOSS as a result of any deceptive trade
or sales practice, the court shall order the school or agent to
pay to the complainant or class of complainants full restitution
for such loss.
(4) ANY PERSON FILING A COMPLAINT ALLEGING A DECEPTIVE TRADE OR SALES PRACTICE PURSUANT TO THIS SECTION SHALL EXHAUST THE REMEDIES PROVIDED IN THIS SECTION PRIOR TO FILING A COMPLAINT WITH THE DISTRICT COURT ALLEGING A DECEPTIVE TRADE OR SALES PRACTICE.
SECTION 230 1259119 (2) and (3), Colorado Revised Statutes, are amended to read:
1259119. Preservation of
records. (2) In the event that
it appears to the division
BOARD that any such records of a school ceasing operation are
in danger of being destroyed, secreted, mislaid, or otherwise
made unavailable to the division
BOARD, the division
BOARD may seize and take possession of such records upon making
application to any court of competent jurisdiction for an appropriate
order. The division
BOARD shall maintain or cause to be maintained in the department
of personnel a permanent file of any such records.
(3) Any person desiring copies of any
such records shall pay a fee as may be established by the state
board.
SECTION 240 1259121, Colorado Revised Statutes, is amended to read:
1259121. Violations
civil penalty. The division
BOARD may commence a civil action against any entity believed
by the division
BOARD to have violated the provisions of section 1259107
or who fails or refuses to deposit with the department of personnel
the records required by section 1259119. Upon a finding
that such entity has violated the provisions of section 1259107
or has failed or refused to deposit with the department of personnel
the records required by section 1259119, the court
shall order such entity to pay to the division a civil penalty
not to exceed one hundred dollars for each violation. Each day's
failure by an entity to comply with the provisions of said section
shall be a separate violation.
SECTION 250 1259123, Colorado Revised Statutes, is amended to read:
1259123. State administrative
procedure act. Unless otherwise provided
in this article, the provisions of the "State Administrative
Procedure Act", article 4 of title 24, C.R.S., shall govern
the giving of notices for and the conducting of any hearings on
any matter within the authority of the division
BOARD as set forth in this article.
SECTION 260 1259125, Colorado Revised Statutes, is amended to read:
1259125. Enforcement
injunction. Whenever it appears to the
division
BOARD that any entity is or has been violating any of the provisions
of this article or any of the lawful rules and
regulations or orders of the division
BOARD, the division
BOARD, on its own motion or on the written complaint of any person,
may apply for and obtain a temporary restraining order or injunction,
or both, in the name of the division
BOARD in any district court in this state against said entity
for the purpose of restraining or enjoining such violation or
for an order directing compliance with the provisions of this
article and all rules and regulations
and orders issued pursuant to this article. It shall not be necessary
that the division
BOARD allege or prove that it has no adequate remedy at law. The
right of injunction provided in this section shall be in addition
to any other legal remedy which the division
BOARD has and shall be in addition to any right of criminal prosecution
provided by law. The existence of division
BOARD action with respect to alleged violations of this article
shall not operate as a bar to any action for injunctive relief
pursuant to this section.
SECTION 270 1259127, Colorado Revised Statutes, is amended to read:
1259127. Transfer of governance
of private occupational schools provisions for transition
rules. (1) (a) Any
powers, duties, and functions relating to the governance, jurisdiction,
and control of private occupational schools which
THAT were previously vested in the state board for community colleges
and occupational education prior to July 1, 1990, are specifically
transferred to the division on July 1, 1990.
(b) THE POWERS, DUTIES, AND FUNCTIONS SPECIFIED IN SECTION 1259105.3 RELATING TO THE GOVERNANCE, JURISDICTION, AND CONTROL OF PRIVATE OCCUPATIONAL SCHOOLS THAT WERE PREVIOUSLY VESTED IN THE DIVISION PRIOR TO JULY 1, 1998, ARE SPECIFICALLY TRANSFERRED TO THE BOARD ON JULY 1, 1998.
(2) (a) The certificate of approval
of any school holding a valid certificate of approval prior to
July 1, 1990, issued by the state board for community colleges
and occupational education which
THAT does not expire normally on said date shall extend to and
expire on its normal date without approval of the division unless
such certificate of approval is revoked or suspended by the division
or unless the school ceases operation.
(b) THE CERTIFICATE OF APPROVAL OF ANY SCHOOL HOLDING A VALID CERTIFICATE OF APPROVAL PRIOR TO JULY 1, 1998, ISSUED BY THE DIVISION THAT DOES NOT EXPIRE NORMALLY ON SAID DATE SHALL EXTEND TO AND EXPIRE ON ITS NORMAL DATE WITHOUT APPROVAL OF THE BOARD UNLESS SUCH CERTIFICATE OF APPROVAL IS REVOKED OR SUSPENDED BY THE BOARD OR UNLESS THE SCHOOL CEASES OPERATION.
(3) (a) The permit of any agent holding
a valid permit prior to July 1, 1990, issued by the state board
for community colleges and occupational education which
THAT does not expire normally on said date shall extend to and
expire on its normal date without approval of the division unless
such approval is revoked or suspended by the division or unless
the school represented by the agent ceases operation.
(b) THE PERMIT OF ANY AGENT HOLDING A VALID PERMIT PRIOR TO JULY 1, 1998, ISSUED BY THE DIVISION THAT DOES NOT EXPIRE NORMALLY ON SAID DATE SHALL EXTEND TO AND EXPIRE ON ITS NORMAL DATE WITHOUT APPROVAL OF THE BOARD UNLESS SUCH APPROVAL IS REVOKED OR SUSPENDED BY THE BOARD OR UNLESS THE SCHOOL REPRESENTED BY THE AGENT CEASES OPERATION.
(4) The division
BOARD shall establish minimum criteria, promulgate other rules,
and regulations
and adopt procedures necessary for the conduct of its work and
the implementation of this article pursuant to section
1259105 SECTION 1259105.3.
SECTION 280 241114 (3) (d), Colorado Revised Statutes, is amended to read:
241114. Department of higher education creation. (3) The department of higher education shall include the following divisions:
(d) The private occupational school division,
created by part 7 of article 60 of title 23, C.R.S. THE PRIVATE
OCCUPATIONAL SCHOOL BOARD, CREATED BY SECTION 2360704,
C.R.S., SHALL EXERCISE ITS POWERS AND PERFORM ITS DUTIES AND FUNCTIONS
AS IF TRANSFERRED TO THE DEPARTMENT BY A TYPE 1 TRANSFER.
The division, EXCEPT FOR THE PRIVATE OCCUPATIONAL SCHOOL BOARD,
and the executive
director thereof shall exercise their powers and perform their
duties and functions as if transferred to the department by a
type 2 transfer.
SECTION 290 No appropriation. The general assembly has determined that this act can be implemented within existing appropriations, and therefore no separate appropriation of state moneys is necessary to carry out the purposes of this act.
SECTION 300 Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.