75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 512
 
                         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)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Requires school that confers or offers to confer academic
degree to be licensed as career school for course or program that
does not lead to academic degree.
  Allows Superintendent of Public Instruction to consider prior
history of applicant when granting license for career school.
  Directs superintendent to require criminal records checks on
applicant for licensure or renewal of license as career school if
school offers courses to minors.
 
                        A BILL FOR 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 has been approved by the
Oregon Student Assistance Commission to confer or offer to confer
academic degrees under ORS 348.606 also offers a course or
program that does not lead to an academic degree:
  (1) The school must be licensed as a career school and meet the
requirements of ORS 345.010 to 345.450 and rules adopted by the
State Board of Education under ORS 345.010 to 345.450.
  (2) A student enrolled in the course or program 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;
  (b) Was first admitted to the school when the school was
licensed as a career school under ORS 345.010 to 345.450; and
  (c) Continuously attended the career school until the career
school ceased providing educational services. + }
  SECTION 3.  { + Section 2 of this 2009 Act applies to courses
or programs started on or after the effective date of this 2009
Act. + }
  SECTION 4. 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.
  (3) 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) 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 is not advertised or promoted
as leading to or fulfilling the requirements for licensing,
certification, accreditation or education credentials.
  (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 { + , unless
the school offers a course or program as described in section 2
of this 2009 Act + }.
  (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) Courses offered in hospitals which meet standards
prescribed by the American Medical Association or national
accrediting associations for nursing.
  (8) 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 profession.
  (9) Any parochial or denominational institution providing
instruction or training relating solely to religion and which
does not grant degrees.
   { +  (10) Courses, instruction or training offered for a
limited number of hours, as defined by rule of the State Board of
Education. + }
  SECTION 5. 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)  { + The Superintendent of Public Instruction may only
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
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.
  (c) If the career school will be enrolling or does enroll
persons who are under 18 years of age, fingerprints of
individuals who hold positions of authority or control in the
operation of the school and faculty members and agents of the
school. Fingerprints acquired under this paragraph may be used
only for the purpose of requesting a state or nationwide criminal
records check under ORS 181.534. + }
    { - (4) - }   { + (6) + }   { - The - }   { + A career + }
school license is nontransferable.  The licensee must give 30
days prior notification to the Department of Education when
transferring ownership { +  of a career school + }.
    { - (5) - }   { + (7) + } 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 6.  { + The amendments to ORS 345.030 by section 5 of
this 2009 Act apply to applications for issuance or renewal of a
license that are submitted on or after the effective date of this
2009 Act. + }
  SECTION 7. 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
 
____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
criminal background check under ORS 181.534. The fees 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.
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