Chapter 540 Oregon Laws 2003

AN ACT

SB 129

Relating to private career schools; creating new provisions; amending ORS 345.080 and 345.110; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 345.080 is amended to read:

345.080. (1) Before issuing any licenses under ORS 345.010 to 345.450, the Superintendent of Public Instruction shall collect the following nonrefundable, annual license fees:

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In-State Schools

Tuition Income Range Fee

$ 0 - 15,000 $ 450

[15,000] 15,001 - 50,000 600

[50,000] 50,001 - 125,000 750

[125,000] 125,001 - 250,000 1,050

[250,000] 250,001 - 500,000 1,350

[500,000] 500,001 - 750,000 1,650

[750,000] 750,001 - 1,000,000 1,950

Over 1,000,000 2,250

Out-of-State Schools

Tuition Income Range Fee

$ 0 - 50,000 $ 1,350

[50,000] 50,001 - 250,000 1,650

[250,000] 250,001 - 500,000 1,950

[500,000] 500,001 - 750,000 2,250

[750,000] 750,001 - 1,000,000 2,550

Over 1,000,000 2,850

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(2) The State Board of Education may adopt, by rule, fees for teacher registration and fees for providing copies of student transcripts maintained at the Department of Education.

[(2)] (3) All fees [so] collected under this section shall be paid to the credit of the department [of Education]. Such moneys are continuously appropriated to the department and shall be used for the administration of the licensing program under ORS 345.010 to 345.450.

SECTION 2. ORS 345.110 is amended to read:

345.110. (1) The Tuition Protection Fund is established separate and distinct from the General Fund. Interest earned by the [account] fund shall be credited to the [account] fund. Proceeds of the fund are continuously appropriated to the Department of Education to protect students when a career school ceases to provide educational services and for administrative expenses incurred under subsection (5) of this section.

(2) The Superintendent of Public Instruction shall maintain and administer the fund, and the State Board of Education shall adopt by rule procedures governing the administration and maintenance of the fund, including requirements relating to contributions to and claims against the fund.

(3) Each career school shall pay to the Tuition Protection Fund an initial capitalization deposit in amounts and within time limits established by rule of the board. Thereafter, each school shall make installment payments based on a matrix adopted by rule of the board. In establishing the amount and frequency of payments, the board may consider the enrollment and financial condition of each school and such other factors as the board considers appropriate. The superintendent may deny, suspend or revoke the license of a school which fails to make payments or fails to conform to other requirements of this section or rules adopted by the board under this section.

(4) The superintendent shall deposit moneys received under this section with the State Treasurer in the Tuition Protection Fund.

(5) The superintendent may disburse moneys from the fund by checks or orders drawn upon the State Treasurer in conformance with rules of the board and only for tuition protection purposes, including the superintendent’s costs in administering and maintaining the fund.

(6) The superintendent may enter into contracts to carry out the purposes of the fund. The provisions of ORS chapter 279 do not apply to contracts entered into under this subsection.

SECTION 3. The amendments to ORS 345.110 by section 2 of this 2003 Act first apply to contracts entered into by the Superintendent of Public Instruction on or after the effective date of this 2003 Act.

SECTION 4. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect July 1, 2003.

Approved by the Governor July 3, 2003

Filed in the office of Secretary of State July 3, 2003

Effective date July 3, 2003

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