75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
 
                            Enrolled
 
                         House Bill 2108
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Superintendent of Public
  Instruction Susan Castillo for Department of Education)
 
 
                     CHAPTER ................
 
 
                             AN ACT
 
 
Relating to career schools; creating new provisions; and amending
  ORS 345.015, 345.030 and 345.080.
 
Be It Enacted by the People of the State of Oregon:
 
  SECTION 1.  { + Section 2 of this 2009 Act is added to and made
a part of ORS 345.010 to 345.450. + }
  SECTION 2.  { + When a school that is licensed under ORS
345.010 to 345.450 is approved by the Oregon Student Assistance
Commission through the Office of Degree Authorization to confer
or offer to confer an academic degree under ORS 348.606 and the
school continues to offer a course or program that does not lead
to an academic degree:
  (1) The school must continue to be licensed as a career school
and meet the requirements of ORS 345.010 to 345.450 until:
  (a) All courses or programs offered by the school are approved
by the commission; and
  (b) All students who were first enrolled in the school when the
school was licensed as a career school have:
  (A) Completed the course or program for which the student
contracted with the career school; or
  (B) Terminated enrollment in the career school for any reason.
  (2) A student who is enrolled in a course or program for which
a school must be licensed under ORS 345.010 to 345.450 is
eligible for moneys from the Tuition Protection Fund established
under ORS 345.110 if the student:
  (a) Qualifies for moneys under rules adopted by the State Board
of Education under ORS 345.110; and
  (b) Was first admitted to the school when the school was
licensed as a career school under ORS 345.010 to 345.450.
  (3) When a course or program that did not lead to an academic
degree is approved by the commission to lead to an academic
degree, the regulatory authority for that course or program
transfers to the commission upon the approval. + }
  SECTION 3. ORS 345.015 is amended to read:
  345.015. ORS 345.010 to 345.450 do not apply to:
  (1) Instruction or training solely avocational or recreational
in nature or to institutions offering such education exclusively.
    { - (2) Schools that the Superintendent of Public Instruction
determines are adequately regulated by other means, including but
not limited to accreditation by the Northwest Association of
Schools and Colleges. - }
 
 
Enrolled House Bill 2108 (HB 2108-A)                       Page 1
 
 
 
    { - (3) - }   { + (2) + } Instruction or training sponsored
or offered by a bona fide trade, business, professional or
fraternal organization or by a business solely for the
organization's membership or the business's employees.
    { - (4) - }   { + (3) + } Instruction or training sponsored,
offered or contracted by organizations, institutions or agencies,
if the instruction or training is advertised or promoted to be in
the nature of professional self-improvement   { - but - }
 { + or personal self-improvement and the instruction or training
 + }is not { + :
  (a) + } Advertised or promoted as leading to or fulfilling the
requirements for licensing, certification, accreditation or
education credentials  { - . - }  { + ; or
  (b) Leading to an occupation, employment or other activity for
which a person may reasonably expect financial compensation. + }
    { - (5) Any school approved by the Oregon Student Assistance
Commission to confer or offer to confer academic degrees under
ORS 348.606 or any school described in ORS 348.597. - }
    { - (6) Schools offering only review instruction to prepare a
student to take an examination to enter a profession, where the
student has completed prior training related to that
profession. - }
    { - (7) - }   { + (4) + } Courses offered in hospitals
 { - which - }   { + that + } meet standards prescribed by the
American Medical Association or national accrediting associations
for nursing.
   { +  (5) Courses, instruction or training offered for a
limited number of hours, as defined by rule of the State Board of
Education. + }
    { - (8) - }   { + (6) + } Schools offering only courses of an
advanced training or continuing educational nature when offered
solely to licensed practitioners and people previously qualified
or employed in   { - a related - }   { + the + } profession
 { - . - }  { +  for which a course is being offered.
  (7) Schools that the Superintendent of Public Instruction
determines are adequately regulated by other means that guarantee
the school meets the standards of ORS 345.325.
  (8) Schools offering only review instruction to prepare a
student to take an examination to enter a profession, where the
student has completed prior training related to the profession.
  (9) Schools described in ORS 348.597 and, except as provided in
section 2 of this 2009 Act, schools approved by the Oregon
Student Assistance Commission to confer or offer to confer
academic degrees under ORS 348.606. + }
    { - (9) - }   { + (10) + } Any parochial or denominational
institution providing instruction or training relating solely to
religion and
  { - which - }   { + that + } does not grant degrees.
  SECTION 4. ORS 345.030 is amended to read:
  345.030. (1)   { - No person shall - }   { + A person may
not + } open, conduct or do business as a career school in this
state without obtaining a license under ORS 345.010 to 345.450.
  (2)  { + Except as provided in subsection (8) of this section,
the Superintendent of Public Instruction may issue + } a license
to conduct a career school   { - shall be granted - }  only after
the applicant has presented proof satisfactory to the
superintendent
  { - of Public Instruction - }  or the representative
 { - thereof - }   { + of the superintendent + } that the
applicant complies with applicable standards adopted under ORS
 
 
Enrolled House Bill 2108 (HB 2108-A)                       Page 2
 
 
 
345.325 { +  and 670.280 + }.  { + For the purpose of this
subsection, + } ORS 670.280 applies to individuals who hold
positions of authority or control in the operation of the school
and to its faculty members and agents.
  (3) A career school licensed in any other state must be
licensed in this state before establishing a physical presence in
this state such as offices or agents, or both, for the purpose of
solicitation of students.
   { +  (4) In determining whether to issue a license to a career
school, the superintendent may consider the prior history of the
applicant in operating other career schools. The prior history of
operating other career schools includes, but is not limited to:
  (a) Conduct by the applicant that is cause for probation of a
licensee or for suspension or revocation of a license as provided
in ORS 345.120 (2);
  (b) Failure to comply with ORS 345.010 to 345.450 or rules
adopted under ORS 345.010 to 345.450; and
  (c) The history of the applicant in operating career schools in
other states.
  (5) The superintendent may not issue a license to or renew the
license of a career school until the applicant provides all of
the following to the superintendent:
  (a) A financial statement, certified true and accurate and
signed by the owner of the school;
  (b) Proof of compliance with the tuition protection policy
established by the State Board of Education pursuant to ORS
345.110; and
  (c) Fingerprints of individuals as described in subsection (6)
of this section.
  (6)(a) Except as provided in paragraph (c) of this subsection,
an applicant for an initial issuance of a license or a renewal of
a license must provide to the superintendent the fingerprints of
faculty members and agents of the school and individuals who hold
positions of authority or control in the operation of the school
if the career school will be enrolling or does enroll persons
under 18 years of age.
  (b) In addition to requirements provided under paragraph (a) of
this subsection, the superintendent may require a career school
to provide the fingerprints of any agents of the school who will
have contact with persons under 18 years of age on behalf of the
career school.
  (c) An applicant is not required to provide fingerprints under
paragraph (a) or (b) of this subsection if the Department of
Education has conducted a state or nationwide criminal records
check on the person within the three years preceding the date of
the application.
  (d) Fingerprints acquired under this subsection may be used
only for the purpose of requesting a state or nationwide criminal
records check under ORS 181.534.
  (7) Notwithstanding ORS 345.325 (10), the superintendent may
place a school on probation or deny, suspend or revoke a license
if the superintendent finds that an individual who holds a
position of authority or control in the operation of the school
was convicted of a crime listed in ORS 342.143.
  (8) The superintendent may issue a conditional license to a
career school that meets the requirements of subsection (5) of
this section but that does not comply with the applicable
standards adopted by rule under ORS 345.325. A conditional
license issued under this subsection is effective for a period
prescribed by the department, which may not exceed 90 days. + }
 
 
Enrolled House Bill 2108 (HB 2108-A)                       Page 3
 
 
 
    { - (4) - }   { + (9)(a)  + }  { - The - }   { + Except as
provided in paragraph (b) of this subsection, a career + } school
license is nontransferable. The licensee must give 30 days
 { - prior notification - }   { + of notice + } to the Department
of Education when transferring ownership { +  of a career
school + }.
   { +  (b) The department may transfer a career school license
or allow the ownership of a career school to transfer with less
than 30 days of notice if:
  (A) The owner of the school dies, is incapacitated or is
incarcerated; or
  (B) Other circumstances render the owner unable to operate the
career school. + }
    { - (5) - }   { + (10) + } Each career school shall display
its license in a prominent place.
    { - (6) No career school shall be issued a license or have
its license renewed until the applicant furnishes the
superintendent a financial statement, certified true and accurate
and signed by the owner of the school. - }
    { - (7) No career school shall be issued a license or have
its license renewed until the applicant provides proof of
compliance with the tuition protection policy established by the
State Board of Education pursuant to ORS 345.110. - }
  SECTION 5. 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:
_________________________________________________________________
 
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
 In-State Schools
Tuition Income Range       Fee
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
   $    0 -15,000        $ 450
   15,001 -50,000          600
   50,001 125,000          750
  125,001 250,000        1,050
  250,001 500,000        1,350
  500,001 750,000        1,650
  750,001,000,000        1,950
     Ove1,000,000        2,250
 
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
Out-of-State Schools
Tuition Income Range       Fee
 
 
Enrolled House Bill 2108 (HB 2108-A)                       Page 4
 
 
 
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
   $    0 -50,000        1,350
   50,001 250,000        1,650
  250,001 500,000        1,950
  500,001 750,000        2,250
  750,001,000,000        2,550
     Ove1,000,000        2,850
_________________________________________________________________
 
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
  (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.
   { +  (3) The board may adopt, by rule, fees for conducting a
state or nationwide criminal background check under ORS 181.534
and may collect fees for each criminal records check. Fees
collected as provided by this subsection are in addition to any
other fees collected by the department. + }
    { - (3) - }   { + (4) + } All fees collected under this
section shall be paid to the credit of the department. 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 6.  { + The amendments to ORS 345.030 and 345.080 by
sections 4 and 5 of this 2009 Act apply to applications for
issuance or renewal of a license that are submitted to the
Department of Education on or after the effective date of this
2009 Act. + }
                         ----------
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 2108 (HB 2108-A)                       Page 5
 
 
 
 
 
Passed by House May 7, 2009
 
 
      ...........................................................
                                             Chief Clerk of House
 
      ...........................................................
                                                 Speaker of House
 
Passed by Senate May 21, 2009
 
 
      ...........................................................
                                              President of Senate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 2108 (HB 2108-A)                       Page 6
 
 
 
 
 
Received by Governor:
 
......M.,............., 2009
 
Approved:
 
......M.,............., 2009
 
 
      ...........................................................
                                                         Governor
 
Filed in Office of Secretary of State:
 
......M.,............., 2009
 
 
      ...........................................................
                                               Secretary of State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 2108 (HB 2108-A)                       Page 7