Section .0100 - Business, Trade And Technical Schools

Link to law: http://reports.oah.state.nc.us/ncac/title 23 - community colleges/chapter 03 - miscellaneous programs/subchapter a/subchapter a rules.html
Published: 2015

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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.