CHAPTER 03 - MISCELLANEOUS PROGRAMS
SUBCHAPTER 03A - PROPRIETARY SCHOOLS
SECTION .0100 - BUSINESS, TRADE AND TECHNICAL SCHOOLS
23 NCAC 03A .0101 DEFINITIONS AND APPLICATION FOR
INITIAL LICENSE
(a) Classes or schools conducted by employers for their own
employees are exempt from the provisions of this Subchapter. Employers may
contract with third party agencies to provide training for their employees.
Schools or classes conducted by third party agencies for an employer to train
his employees are exempt from the provisions of this Subchapter.
(b) The following terms shall have the following meaning in
this Subchapter unless the context of a specific rule requires a different
interpretation.
(1) "Catastrophic loss amount" means
the amount of funds required to protect prepaid student tuition in case of a
large-scale event that would draw against the Student Protection Fund. The
amount is one million dollars ($1,000,000).
(2) "Classes or schools" as stated in
G.S. 115D-88(4a) means classes or schools, which are offered by the seller of
the equipment or the seller's agent.
(3) "Equipment" as stated in G.S.
115D-88 includes software.
(4) "Five or fewer students" as
stated in G.S. 115D-88(4b) means the total number of students at the time of
maximum enrollment during any term.
(5) "Fund cap amount" means the
catastrophic loss amount plus a reserve amount. The fund cap amount is one
million five hundred thousand dollars ($1,500,000).
(6) "Proprietary school" means any
business school, trade school, technical school, or correspondence school
which:
(A) offers postsecondary education or training for
profit or for a tuition charge or offers classes for the purpose of teaching,
for profit or for a tuition charge, any program of study or teaching one or
more of the courses or subjects needed to train and educate an individual for
employment; and
(B) has any physical presence within the State of North Carolina; and
(C) is privately owned and operated by an owner,
partnership or corporation.
(7) "Remote sites" means approved
instructional environments in the same county that do not have any
administrative staff or administrative functions such as recruiting, accounting
and record keeping taking place.
(8) “Reserve amount” means the difference
between the catastrophic loss amount and the fund cap amount. Its purpose is
to reduce the possibility of the Student Protection Fund being completely
depleted. The reserve amount is five hundred thousand dollars ($500,000).
(9) "Student Protection Fund" is a
statewide fee-supported fund. The purpose of the Student Protection Fund is to
compensate students enrolled in a proprietary school licensed under G.S.
115D-90 who have suffered a loss of tuition, fees, or any other
instruction-related expenses paid to the school by reason of the failure of the
school to offer or to complete student instruction, academic services, or other
goods and services related to course enrollment. Students are eligible to be
compensated under the Student Protection Fund only if the school ceases to operate
for any reason, including, but not limited to the suspension, revocation, or
nonrenewal of a school's license, bankruptcy, or foreclosure.
(10) "Users" as stated in G.S.
115D-88(4a) means employees or agents of purchasers.
(c) Application for an Initial License:
(1) Any person or persons operating a
proprietary school with an enrollment of more than five persons in a school in
the State of North Carolina shall obtain a license from the North Carolina
State Board of Community Colleges except as exempt by G.S. 115D-88.
(2) Any person or persons seeking to operate a
proprietary school that requires licensure shall submit a preliminary
application setting forth the proposed location of the school, the
qualifications of the Chief Administrator of the school, a description of the
facilities available, courses to be offered, and financial resources available
to equip and maintain the school. Upon approval of the preliminary
application, a final application may be submitted. The final application shall
be verified and accompanied by the following:
(A) A certified check or money order for the initial
license fee in the amount of two thousand five hundred dollars ($2,500) made
payable to the North Carolina State Treasurer;
(B) A guaranty bond or alternative to a guaranty bond as
set forth in G.S. 115D-95. Except as otherwise provided herein, the bond
amount for a proprietary school shall be at least equal to the maximum amount
of prepaid tuition held at any time during the fiscal year. During the initial
year of operation, the guaranty bond amount or an alternative to a guaranty
bond amount shall be based on the projected maximum amount of prepaid tuition
that will be held at any time during that year. In any event, the minimum
surety bond shall be twenty five thousand dollars ($25,000);
(C) A certified check or money order for the Student
Protection Fund in the amount of one thousand two hundred and fifty dollars
($1,250) made payable to the North Carolina State Treasurer;
(D) A copy of the school's catalog or bulletin. The
catalog shall include a statement addressing each item listed in G.S.
115D-90(b)(7);
(E) A financial statement showing capital investment,
assets and liabilities, and the proposed operating budget which demonstrates
financial stability or a financial statement and an accompanying opinion of the
school's financial stability by either an accountant, using generally accepted
accounting principles, or a lending institution;
(F) A detail of ownership; (This must show stock
distribution if the school is a corporation, or partnership agreement if the
school will be operated as a partnership.)
(G) Information on all administrative and instructor
personnel who will be active in the operation of the school, either in full- or
part-time capacity; (This information must be submitted on forms provided for
this purpose.)
(H) Enrollment application or student contract form;
(I) School floor plan showing doors, windows, halls,
and seating arrangement; also offices, rest rooms, and storage space; the size
of each room and seating capacity shall be clearly marked for each classroom;
lighting showing kind and intensity shall be indicated for each room; the type
of heating and cooling system used for the space occupied shall be stated;
(J) Photostatic copies of inspection reports or
letters from proper officials to show that the building is safe and sanitary
and meets all local city, county, municipal, state, and federal regulations
such as fire, building, and sanitation codes; and
(K) If the building is not owned by the school, a
photostatic copy of the lease held by the school for the space occupied.
(3) A person or persons purchasing a
proprietary school already operating as a licensed school shall comply with all
of the requirements for securing an initial license. A license is not
transferable to a new owner. All application forms and other data shall be
submitted in full. Such terms as "previously submitted" when
referring to a former owner's file are not acceptable. If a proprietary school
offers classes in more than one county, the school's operations in each such
county constitutes a separate school requiring a separate license. Classes
conducted by the school in separate locations shall be reported and approved
prior to advertising and commencement of classes.
(4) Remote sites shall not have any
administrative staff or any administrative functions such as recruiting,
accounting or record keeping. Each remote site shall be subject to an initial
remote site fee of one thousand dollars ($1,000) and an annual remote site
renewal fee of seven hundred and fifty dollars ($750.00) to be paid by a certified
check or money order made payable to the North Carolina State Treasurer. Each
remote site shall have an initial site visit and a visit during each annual
audit.
(5) Classes conducted at remote sites by
licensed schools shall be approved prior to advertising and commencement of
classes. Any course offered at a remote site shall be a part of an approved
program of study for that licensed school.
(6) Changes in application information
presented for licensure or relicensure relating to mission, programs, location
or stock distribution require prior approval and licensure amendment by the
State Board of Community Colleges.
(A) Program additions require curriculum reviews and
program or course approvals prior to initiation. A certified check or money
order in the amount of two hundred dollars ($200.00) made payable to the North
Carolina State Treasurer shall accompany each additional program approval
request.
(B) Single course additions or revisions may be
individually approved when schools submit a request for license amendment.
Course additions or revisions requiring curriculum review, instructor
evaluation, and equipment site assessment are subject to the curriculum review
fee of two hundred dollars ($200.00) to be paid by a certified check or money
order made payable to the North Carolina State Treasurer.
(C) School relocations require site visits and approvals
prior to use. A certified check or money order in the amount of four hundred
dollars ($400.00) made payable to the North Carolina State Treasurer shall
accompany each site relocation approval request.
(D) Other site assessment visits, such as for program
additions and revisions, shall require a certified check or money order made
payable to the North Carolina State Treasurer in the amount of two hundred
dollars ($200.00).
History Note: Authority G.S. 115D-88; 115D-89; 115D-90;
115D-91; 115D-92; 115D-95.1;
Eff. September 1, 1993;
Amended Eff. July 1, 2010; August 13, 2005; December 1,
2004.
23 NCAC 03A .0102 APPLICATION FOR
RENEWAL OF LICENSE
(a) Schools shall be licensed annually, and the licensure
shall extend from July 1 through June 30, inclusive.
(b) Schools desiring the renewal of their license shall
submit an application on or before April 1 of each year. The application shall
be accompanied by the following:
(1) All information required of schools
applying for an initial license that has not been previously submitted;
(2) For a school that has been licensed for one
year but less than six years, verification that the guaranty bond or
alternative to the guaranty bond is in an amount equal to the greatest amount
of unearned paid tuition in the school's possession at any time during the
prior fiscal year. This verification shall be in the form of quarterly reports
to the President of the North Carolina Community College System evaluating the
amount of the guaranty bond or alternative to the guaranty bond. Quarterly
evaluation reports requiring an increase of five percent or more in the amount
of the bond held by the school must show an immediate increase in the bond
amount at the time of the evaluation. At the time of the school's annual
license renewal, the guaranty bond or alternative to the guaranty bond shall be
an amount equal to the greatest amount of unearned paid tuition in the school's
possession at any time during the prior fiscal year;
(3) Copy of current catalog containing all
information required of schools applying for initial license; and
(4) Any supplementary information necessary to
bring information on the school up to date.
(c) A certified check or money order in the amount of one
thousand two hundred and fifty dollars ($1,250) plus fifty dollars ($50.00) per
program made payable to the North Carolina State Treasurer shall be received on
or before April 1.
(d) Proprietary schools shall make payment to the Student
Protection Fund in the amount set forth in G.S. 115D-95.1.
(1) In addition to the payments required under
G.S. 115D-95.1, as a condition of license renewal for the 2010-2011 fiscal
year, each proprietary school shall pay into the Student Protection Fund an
amount based on its total enrollment for the previous calendar year as follows:
Number of Students
Amount of Assessment
0-49
$500.00
50-99
$1,000
100-499
$2,000
500-999
$3,000
1,000-1,499
$4,000
More than 1,500
$5,000
(2) "Total enrollment" means the
number of students enrolled on January 1, 2009, plus new students enrolled
during the calendar year plus students reentering from a period of
nonattendance during the calendar year.
(3) The full and timely payment into the
Student Protection Fund pursuant to this Chapter is a condition of licensure.
(4) The State Board of Community Colleges shall
not refund any payment to the Student Protection Fund in the event that a
school's license application is rejected or a school's license is suspended or
revoked.
(e) Proprietary schools shall make adjustments to the
guaranty bond or alternative to the guaranty bond requirements of schools based
on G.S. 115D-95. A guaranty bond or alternative to the guaranty bond shall be
required for license renewal for a school that has been continuously licensed
to operate for more than five years in the State, as follows:
(1) If the balance of the Student Protection
Fund in G.S. 115D-95.1 is below the catastrophic loss amount, the school shall
file a guaranty bond or alternative to the guaranty bond in an amount equal to
the maximum amount of prepaid tuition held by the school during the prior
fiscal year multiplied by the percentage amount the fund is deficient.
(2) If the school held prepaid tuition in
excess of the Student Protection Fund catastrophic loss amount during the prior
fiscal year, in addition to any guaranty bond or alternative to a guaranty bond
amount required by Subparagraph (1) of this Paragraph, the school shall file a
guaranty bond for the difference between the prepaid tuition amount held in the
previous fiscal year and the Student Protection Fund catastrophic loss amount.
(f) The State Board of Community Colleges, acting by and
through the President of the Community College System, will tabulate the
balance of the Student Protection Fund as of December 31 of each year and
establish the percentage amounts identified in Subparagraph (e)(1) of this Rule.
The State Board of Community Colleges, acting by and through the President of
the Community College System, will report these calculations to the Student
Protection Fund Advisory Committee for its review on an annual basis.
History Note: Authority G.S. 115D-89; 115D-91; 115D-92;
115D-95.1; S.L. 2009-562 s.4;
Eff. September 1, 1993;
Amended Eff. July 1, 2010; August 13, 2005; December 1,
2004.
23 NCAC 03A .0103 SCHOOL PLANT AND EQUIPMENT
(a) The school plant, premises, and facilities shall be
adequate, safe, and sanitary and shall be in compliance with the statutory
provisions and the rules and regulations of all local ordinances pertaining to
fire, health, safety, and sanitation.
(b) The equipment, supplies, and instructional materials of
the school shall be satisfactory and adequate in type, quality, and amount, and
shall be suitable for satisfactory use in administering the course or courses
of instruction. They shall also meet all requirements of statutory provisions
and local ordinances, and rules and regulations adopted thereunder in regard to
fire, health, safety, and sanitation.
History Note: Authority G.S. 115D-89; 115D-90;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0104 ADMINISTRATION
(a) One person shall be designated as the chief
administrator of the school or branch thereof. The chief administrator shall
be qualified in accordance with the requirements listed in Paragraph (c) of
this Rule.
(b) The chief administrator is defined as the person
directly responsible for the school's program, the methods of instruction, the
employment of instructors, the organization of classes, the maintenance of the
school plant and the equipment, the advertising used, and the maintenance of
proper administrative records and all other procedures related to the
administration of the school or class.
(c) The chief administrator shall have the following
qualifications:
(1) Be a person of good moral character;
(2) Be a graduate of an accredited college or
university accredited by an agency that is recognized by the U.S. Department of
Education; and,
(3) Have the experience, competency, and
capacity to lead the school.
(d) Chief administrators and other administrative personnel
who possess qualifications which are equivalent to the requirements prescribed
herein for chief administrators may be approved individually by the North
Carolina Community College System President or designee.
History Note: Authority G.S. 115D-87; 115D-89; 115D-90;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0105 ADVERTISING
(a) A licensed school shall not advertise through any media
that it offers courses that the school has not been licensed to offer.
(b) Printed catalogs, bulletins, or prospectus information
shall be specific with respect to prerequisite training required for admission
to the school courses, the curricula, the contents of courses, graduation
requirements, tuition and other fees, refunds and allowances for withdrawals
and unavoidable or extended absences.
(c) Schools shall not use any name, title, or other
designation, by way of advertising or otherwise, that is misleading or
deceptive as to character of the institution, or its influence in training and
employment for students.
(d) Schools shall not use a photograph, cut, engraving, or
illustration in catalogs, sales literature, or otherwise in such a manner as to
convey a false impression as to the size, importance, or location of the
school's equipment.
(e) Schools shall not use endorsements, commendations, or
recommendations by students in favor of a school unless it is with the consent
of the writer and without financial compensation or offer of financial
compensation. These materials shall be kept on file by the school.
(f) Schools shall publish tuition rates, payment methods,
and refund policies in their catalogs or as a catalog addendum and shall not
deviate from these rates and policies. All catalog addenda shall show an
effective date and be readily available to the student.
(g) Schools shall not make, cause, permit to be made, or
publish any false, untrue, or deceptive statement or representation by way of
advertising or otherwise concerning other proprietary schools or their
activities in attempting to enroll students or concerning the character,
nature, quality, value, or scope of any course of instruction or educational
service offered or in any other material respect.
(h) A school or class shall not solicit students to enroll
by means of "blind" advertisements or advertisements in the
"help wanted" or other employment columns of newspapers,
publications, and Internet job banks.
(i) Schools shall not make false, untrue, or deceptive
statements of representatives regarding the opportunities in any vocation or
field of activity as a result of the completion of any given course of
instruction or educational service.
(j) Advertisement shall not use salary-related terms or
phrasing such as, "up to", "top", or "high
salary".
(k) Any salary claims shall show comparisons between local
and national employment data and shall be for entry-level positions.
(l) Any salary claims shall be documented and on file at
the institution for public viewing.
(m) Advertisements shall not offer promotions or special
inducements to prospective students or enrollees.
(n) Advertisements and school representatives shall not
guarantee or imply positions or employment to prospective students.
(o) If a licensed proprietary school, in any of its
advertisements, printed materials or media, use the phrase or a similar phrase
"Licensed by the North Carolina State Board of Community Colleges"
then that phrase must be immediately succeeded by the following disclaimer:
"The North Carolina State Board of Community Colleges is not an
accrediting agency."
History Note: Authority G.S. 115D-89; 115D-90;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0106 ADMISSION REQUIREMENTS
(a) The admission requirements for schools licensed under
Article 8 of Chapter 115D of the General Statutes of North Carolina shall be
made available to the public and administered as written.
(b) The school shall require graduation from a public or
private or a state registered home high school as a prerequisite to enrollment
in a certificate or diploma course offered by the school. A copy of the high
school transcript shall be on file for each student enrolled. Exceptions to
this requirement may be made for students who hold a certificate of high school
equivalency or for non-high school graduates who are 18 years of age or older
who have demonstrated the ability to benefit as determined by accepted test instruments.
A copy of the high school equivalency certificate or test results shall be kept
in each student's record. The school shall not permit students of high school
age to attend the school during the time that high schools are in regular
session, except in individual cases approved by the student's high school
principal. A copy of the approved form shall be included in the student's
record.
(c) The school may admit students to special courses or
subjects which are part of the approved curriculum offered by the school when
the school deems the student can benefit from the instruction offered.
(d) If total tuition is greater than five-thousand dollars
($5,000) the school may collect up to 50 percent of the total tuition prior to
that mid-point of the program. The remainder of the tuition may be collected
only when the student has completed one-half of the program. Federal
regulations regarding the disbursement of tuition shall supersede state
disbursement regulations stated in this Rule.
History Note: Authority G.S. 115D-89; 115D-90;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0107 RECORDS
(a) A school licensed under G.S. 115D, Article 8, shall
maintain current, complete, and accurate records to show the following:
(1) An application for admission that includes
the student's educational and personal background, age, and other personal
characteristics.
(2) Progress and attendance including date
entered, dates attended, subjects studied, and class schedule; this record
shall be in a form which permits accurate preparation of transcripts of
educational records for purpose of transfer and placement, providing reports to
government services or agencies, or for such other purposes as the needs of the
student might require. Such transcripts shall be in the form understandable by
lay persons and educators alike. The grading system on such transcripts shall
be explained on the transcript form. Subjects appearing on the transcripts
shall be numbered or otherwise designated to indicate the subject matter covered.
(3) All student enrollment agreements shall
include at a minimum, the program of study, program tuition and fees, date
programs are to begin, time period covered by the tuition payment, and
statement of or reference to the school's tuition refund policy.
(4) All student account ledgers shall include,
at a minimum, monies owed and paid by each student, and refunds issued by the
school.
(5) The students official high school
transcript or proof of GED completion.
(6) Proof of students "ability to benefit"
if the student has not earned a high school diploma or GED certificate.
(b) Records of students shall be open for inspection by
properly authorized officials of the State Board of Community Colleges.
(c) Financial records of the school shall be open for
inspection by properly authorized officials of the State Board of Community
Colleges.
History Note: Authority G.S. 115D-89; 115D-90;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0108 INSTRUCTIONAL PROGRAM
(a) A school licensed under G.S. 115D, Article 8, shall
limit its offering in certificate and diploma programs and special subjects to
the courses and subjects for which it has been licensed to offer. At the beginning
of each term, each school shall post the schedule of subjects being offered
during the term. This schedule will show the time and instructor for each
subject and designate the room in which the subject will be taught. Each
student shall be provided a schedule of classes for each term to show the
student's individual schedule.
(b) Schools shall not publish in their catalogs courses
which they have not been licensed to offer. When a school is licensed to offer
a course or program and enrolls students in the course or program, the school
shall maintain sufficient and qualified faculty to teach all subjects required
for completing the course or program during the time stipulated in the school's
bulletin as the required time to complete the course or program and classes
shall be scheduled so that the students will be able to receive instruction in
all subjects for the number of instructional hours as advertised in the
school's bulletin under which the students enrolled. When a school previously
licensed to offer a course or program fails to maintain the qualifications for
continuing the course or program, the course or program shall be removed from
the catalog or stamped "not offered."
(c) The number of curriculum programs offered by a school
shall be realistic in relationship to faculty employed and students enrolled.
As a general rule, the number of curriculum programs offered shall not exceed
the number of faculty employed on a full-time basis.
(d) The school shall establish its calendar one calendar
year in advance and give full information to prospective and enrolled students
about holidays; beginning and ending dates of each term and other important
dates.
(e) Schools may measure instruction on a clock-hour or
credit-hour basis. The catalog shall provide a clear definition of the method
used. The school catalog shall show the number of clock hours or credit hours
for each subject offered and the minimum clock hours or credit hours a student
shall carry for full-time enrollment. Courses offered on a credit-hour basis
shall show class hours, laboratory hours, and credit hours.
(f) The ratio between student and instructor shall be
reasonable at all times and in keeping with generally accepted delivery modes,
including technology and course content.
(g) Class period shall permit a minimum of 50 minutes net
instruction. Class shall not be scheduled for more than two consecutive class
periods without a break.
(h) Certificates and diplomas shall be issued only upon
successful completion of a standard program of study.
(i) Students enrolled in diploma or certificate programs
shall not be enrolled except at the beginning of each term or within the
drop/add period which shall not exceed 10 percent of a semester course or 25
percent of quarters or clock hour courses. This provision is not applicable to
classes offered on a multi-entry basis.
History Note: Authority G.S. 115D-89; 115D-90;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0109 INSTRUCTIONAL PERSONNEL
(a) An application for approval to teach in a licensed
proprietary school shall be made on forms provided for this purpose. The
application shall be filed prior to an instructor's beginning date for teaching
in a proprietary school.
(b) An instructor shall be found to be qualified by
education or work experience background and must meet the following
qualifications as minimum requirements:
(1) Be a person of good moral character;
(2) Be at least 18 years of age;
(3) Be a graduate of a college or university
accredited by an agency that is recognized by the U.S. Department of Education,
and hold at least an associate degree in a related field or meet the
requirements of other occupational licensing, certification, or approval bodies
requested to approve instructor adequacy; and,
(4) Personnel who possess and can document
qualifications which are equivalent to the requirements prescribed herein for
instructor, may be approved on an individual basis by the North Carolina
Community College System President or his designee.
History Note: Authority G.S. 115D-89; 115D-90;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0110 FINANCIAL STABILITY
(a) A school licensed under G.S. 115D, Article 8, shall
have sufficient finances to establish and carry out a program of education on a
continuing basis.
(b) The North Carolina Community College System Office may request
a credit report.
History Note: Authority G.S. 115D-89; 115D-90;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0111 ETHICS
(a) Schools licensed under Article 8 of Chapter 115D of the
General Statutes of North Carolina shall not offer premiums or special
inducement to prospective students or enrollees. Scholarships may be offered
provided terms of scholarship are published in the school catalog.
(b) Failure to maintain tuition rates as published is
grounds for suspension or revocation of the license of a school.
(c) No officer or representative of the school shall
solicit any student to leave any school in which the student is enrolled or
attends.
(d) A school representative shall not guarantee positions
or employment to prospective students.
History Note: Authority G.S. 115D-89; 115D-90; 115D-93;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0112 REVOKING A LICENSE
The license of a proprietary school may be revoked in
accordance with G.S. 150B, Article 3, when it is found that the school has
failed to comply with the requirements of the law and the rules adopted by the
State Board of Community Colleges.
History Note: Authority G.S. 115D-93; 150B-22 thru
150B-37;
Eff. September 1, 1993;
Amended Eff. December 1, 2004.
23 NCAC 03A .0113 STUDENT REFUND
(a) Any proprietary school that is licensed by the State
Board of Community Colleges is subject to the following refund policies. A
refund shall not be made except under the following circumstances: A 100
percent refund shall be made if the student officially withdraws prior to the
first day of class(es) as noted in the school calendar. Also, a student is
eligible for a 100 percent refund if the class(es) in which the student is
officially registered is cancelled due to insufficient enrollment.
(b) To comply with applicable federal regulations regarding
refunds; federal regulations regarding refunds will supercede state refund
regulations in this Rule.
(c) Proprietary schools are not required to deposit funds
collected for tuition with the State Treasurer's Office.
History Note: Authority G.S. 115D-89; 115D-90.
Eff. April 1, 1997;
Amended Eff. July 1, 2007; December 1, 2004.
23 NCAC 03A .0114 BUSINESS SCHOOL; SPECIFIC REGULATIONS
History Note: Authority G.S. 115D-89; 115D-90;
Eff. September 1, 1993;
Repealed Eff. December 1, 2004.
23 NCAC 03A .0115 TEACH-OUT PLAN AND RECORDS
PRESERVATION
(a) Each proprietary school shall adopt a teach-out plan.
The plan shall be kept on file in the school's administrative office. A copy
of the plan shall be submitted to the North Carolina Community College System
Office, Office of Proprietary Schools, with the application for license.
Amendments or revisions to the plan shall be submitted to the Office of
Proprietary Schools as they are made.
(b) The plan shall include the procedure for notifying
students of a pending school closure and the teach-out arrangements with other
educational or training institutions. The teach-out arrangements shall include
provisions for students to complete their programs, to transfer to other
equivalent programs at other institutions, and to be refunded that portion of
their prepaid tuition and fees not earned by the school.
(c) Each student shall be given a minimum 30-day written
notice of the school's intent to close. Prior to closure, school officials shall
assist students with:
(1) completing their programs at the school;
(2) identifying equivalent programs at other
institutions;
(3) transferring to other institutions, and
(4) receiving refunds.
(d) Prior to closure, a school shall file a copy of all student
permanent academic and financial aid records with the Department of Cultural
Resources.
History Note: Authority G.S. 115D-90;
Eff. December 1, 2004.
23 NCAC 03A .0116 ADMINISTRATION OF THE STUDENT
PROTECTION FUND
(a) The State Board of Community Colleges, acting by and
through the President of the Community College System, shall administer the
Student Protection Fund.
(b) If the Student Protection Fund balance is equal to or
exceeds the Student Protection Fund cap amount, the State Board of Community
Colleges shall suspend payments into the Student Protection Fund for schools
that have been continuously licensed in North Carolina for more than eight
years. The State Board of Community Colleges shall require schools to resume
payments into the Student Protection Fund if the balance of the Student
Protection Fund is less than the catastrophic loss amount.
(c) If claims against the Student Protection Fund exceed
the catastrophic loss amount, the State Board of Community Colleges may assess
additional fees to compensate students qualified for repayment under the
Student Protection Fund. The amount of the catastrophic assessment shall not
exceed one-half of the amount of the annual revenue payment required by G.S.
115D-95.1. If the amount of the catastrophic assessment will be insufficient
to cover qualified claims, the State Board of Community Colleges shall allocate
funds among claims proportional to the amount of student loss and the amount in
the Student Protection Fund.
(d) A student, or the student's parent or guardian, who has
suffered a loss of tuition, fees, or any other instruction-related expenses
paid to a proprietary school licensed under G.S. 115D-90 by reason of the
school ceasing to operate for any reason, including, but not limited to the
suspension, revocation, or nonrenewal of a school's license, bankruptcy, or
foreclosure, may qualify for repayments under the Student Protection Fund. The
State Board of Community Colleges must first issue repayment from the guaranty
bonds and alternatives to the guaranty bond issued under G.S. 115D-95. If the
Student Protection Fund is insufficient to cover the qualified claims, the
State Board of Community Colleges must allocate funds among claims proportional
to the amount of student loss and the amount in the Student Protection Fund.
(e) The Student Protection Fund Advisory Committee shall
meet once per year to review the Fund adjustments or as needed in order to
respond to other matters related to the Fund.
History Note: Authority G.S. 115D-89; 115D-95.1;
Eff. July 1, 2010.
SECTION .0200 - CORRESPONDENCE SCHOOLS
23 NCAC 03A .0201 LICENSING PROPRIETARY CORRESPONDENCE
SCHOOLS
23 NCAC 03A .0202 STANDARDS
23 NCAC 03A .0203 ORGANIZATION AND NATURE OF
CORRESPONDENCE COURSES
23 NCAC 03A .0204 INSTRUCTION
23 NCAC 03A .0205 FINANCIAL STABILITY
23 NCAC 03A .0206 THE OFFICIAL BULLETIN OR CATALOGUE23
NCAC 03A .0207 RESPONSIBILITY FOR PERSONNEL AND AGENTS
23 NCAC 03A .0208 CONTRACT WITH STUDENT23 NCAC 03A .0209 RESIDENT
TRAINING23 NCAC 03A .0210 STANDARDS FOR ENROLLMENT
23 NCAC 03A .0211 RECORDS
23 NCAC 03A .0212 UNFAIR PRACTICES
23 NCAC 03A .0213 REVOKING A LICENSE
23 NCAC 03A .0214 APPLICATION FOR RENEWAL OF LICENSE
History Note: Authority G.S. 115D-87; 115D-87.97;
115D-89; 115D-90; 115D-91; 115D-92; 115D-93; 115D-95; 115D-96; 150B-21.6;
150B-22 thru 150B-37;
Eff. September 1, 1993;
Repealed Eff. December 1, 2004.
