Current Status Introducing Body:House Bill Number:3768 Ratification Number:249 Act Number:246 Primary Sponsor:Phillips Type of Legislation:GB Subject:Proprietary School Act Companion Bill Number:857 Date Bill Passed both Bodies:Jun 06, 1991 Computer Document Number:DKA/3291.AL Governor's Action:S Date of Governor's Action:Oct 01, 1991 Introduced Date:Apr 03, 1991 Date of Last Amendment:Jun 06, 1991 Last History Body:------ Last History Date:Oct 01, 1991 Last History Type:Act No. 246 Scope of Legislation:Statewide All Sponsors:Phillips Wright Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
3768 ------ Oct 01, 1991 Act No. 246
3768 ------ Oct 01, 1991 Signed by Governor
3768 ------ Sep 23, 1991 Ratified R 249
3768 House Jun 06, 1991 Concurred in Senate
amendment, enrolled for
ratification
3768 Senate Jun 06, 1991 Amended, read third time,
returned with amendment
3768 Senate Jun 06, 1991 Reconsidered vote whereby
read third time
3768 House Jun 06, 1991 Returned to Senate upon their
request
3768 Senate Jun 06, 1991 Recalled from House
3768 Senate Jun 05, 1991 Amended, read third time,
returned with amendment
3768 Senate May 30, 1991 Amended, read second time,
ordered to third reading with
notice of general amendments
3768 Senate May 29, 1991 Recalled from Committee 04
3768 Senate May 09, 1991 Introduced, read first time, 04
referred to Committee
3768 House May 09, 1991 Read third time, sent to
Senate
3768 House May 08, 1991 Amended, read second time
3768 House Apr 25, 1991 Committee Report: Favorable 21
with amendment
3768 House Apr 03, 1991 Introduced, read first time, 21
referred to Committee
View additional legislative information at the LPITS web site.
(A246, R249, H3768)
AN ACT TO AMEND CHAPTER 59, TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROPRIETARY SCHOOLS, SO AS TO TRANSFER AUTHORITY FROM THE STATE BOARD OF EDUCATION TO THE STATE COMMISSION ON HIGHER EDUCATION; TO PROVIDE FOR THE STATE COMMISSION ON HIGHER EDUCATION TO PROMULGATE REGULATIONS AND PROVIDE FOR INTERIM REGULATIONS; AND TO REPEAL CHAPTER 61, TITLE 59 RELATING TO REGULATIONS PERTAINING TO COURSES OF INSTRUCTION.
Be it enacted by the General Assembly of the State of South Carolina:
Proprietary School Act
SECTION 1. Chapter 59, Title 59 of the 1976 Code is amended to read:
Section 59-59-10. This chapter may be cited as `The Proprietary School Act'.
Section 59-59-20. Unless otherwise indicated by the context, the following words and phrases when used in this chapter have the following meaning:
(1) `Proprietary school' means a person offering resident or correspondence courses to students upon the payment of tuition or fees.
(2) The definition of a proprietary school does not include:
(a) a school or educational institution supported entirely or partly with state funds;
(b) a parochial or denominational school or institution or members of the South Carolina Independent School Association, Incorporated;
(c) a school or training program which offers instruction primarily in the field of an avocation, recreation, health, or entertainment, as determined by the Commission on Higher Education;
(d) courses of instruction or study sponsored by an employer for the training and preparation of its own employees;
(e) courses of instruction or study sponsored by recognized trade, business, or professional organizations for the instruction of their members;
(f) private colleges and universities which award an associate, baccalaureate, or higher degree;
(g) a school offering a program only for children twelve years of age or younger;
(h) a school which is regulated and licensed under an occupational licensing act of the State;
(i) courses of instruction or study where the tuition charge does not exceed twenty-five dollars for the complete course of instruction;
(j) private school offering courses of instruction to resident or day students of legal school age at the elementary and secondary level.
(3) `Commission' means the State Commission on Higher Education.
(4) `Commissioner' means the Commissioner of the State Commission on Higher Education.
(5) `Salesman', `agent', or `solicitor' means a person who, for remuneration, enrolls or seeks to enroll a resident of this State in courses of instruction or study offered by a proprietary school, or who otherwise holds himself out as representing a proprietary school for such purpose.
(6) `Agent's permit' means a nontransferable written authorization issued to a natural person, pursuant to the provisions of this chapter, to solicit a resident of this State to enroll in courses of instruction or study offered by a proprietary school.
(7) `Course' means organized units of subject matter in which instruction is offered within a given period of time and for which credit is given toward completion of training toward a predetermined occupational, academic, or educational objective.
Section 59-59-30. (A) The commission may license proprietary schools meeting the necessary standards and shall administer and enforce the provisions of this chapter. These standards include, but are not limited to, course offerings, adequate facilities, financial stability, competent personnel, and legitimate operating practices.
(B) The commission shall formulate the criteria and standards for the approval of proprietary schools, provide for adequate investigation of all schools applying for licenses, issue licenses to those applicants meeting the standards, and maintain a list of schools which have been issued licenses.
(C) The commission shall formulate the standards for the approval of salesmen, agents, or representatives of proprietary schools and issue permits to those applicants meeting the standards.
Section 59-59-40. (A) No person shall operate or offer to operate a proprietary school, solicit the enrollment of students, or otherwise represent the school or its program in any manner unless a license or a permit is first secured from the commissioner.
(B) Applications for licenses must be filed in the manner and on the forms prescribed and furnished by the commissioner. Applications, properly verified, must be signed by the applicants and contain information as may be required.
(C) A license issued is restricted to the programs of instruction or courses specifically indicated in the application for a license. The holder of a license shall present a supplementary application as may be directed by the commissioner for approval of additional programs of instruction or courses in which it is desired to offer instruction during the effective period of the license.
Section 59-59-50. (A) The commission may set a reasonable license fee.
(B) Licenses are renewable annually on July first. An application for renewal must be filed in the form and manner prescribed by the commissioner, the renewal fee paid, and the school and its courses, facilities, faculty, and all other operations must meet the requirements for a school to secure an original license.
(C) After a license is issued, it is the school's responsibility to immediately notify the commissioner of any change, as may affect significantly the course of instruction offered.
(D) In the event of the sale of a school, the license is not transferable.
Section 59-59-60. Before the commissioner issues the license, the applicant shall execute a bond in an amount to be determined by the commission but in no event may the required bond be less than one thousand dollars, signed by a surety authorized to do business in this State, conditioned that the principal in the bond will comply with every contract entered into by the school, and will pay back to a student all amounts collected in tuition and fees in case of failure on the part of the applicant to obtain a license. The bond must be filed with the commissioner and submitted with the application for a license.
The surety on any bond may be relieved of liability upon giving thirty days' notice in writing to the commission.
Section 59-59-70. All contracts entered into by proprietary schools with students or prospective students, and all promissory notes, or other evidence of indebtedness taken instead of cash payments by proprietary schools, are void unless the schools have been issued a license as required by this chapter.
Section 59-59-80. (A) No person representing a proprietary school shall solicit or sell any course unless he first secures a permit from the commissioner. All enrollment agreements, contracts, or promissory notes solicited from students or prospective students are void unless the agent has been issued a permit as required by this chapter. The application for a permit must be accompanied by a fee to be set by the commission but not to exceed ten dollars.
(B) Before the commissioner issues a permit, the applicant shall execute a bond in the sum of one thousand dollars, signed by a surety authorized to do business in this State, conditioned to provide indemnification to a student suffering loss as a result of fraud or misrepresentation used in procuring their enrollments.
(C) A permit is valid for one year, renewable annually on July first upon filing an application for renewal accompanied by any fee as may be required by the commission.
(D) No person may be granted a permit unless he is of good moral character and the commission has investigated and is satisfied that the proprietary school, which employs the solicitor or salesman, meets the standards prescribed by the commission.
Section 59-59-90. A license or permit applied for pursuant to this chapter must be granted or denied within fifteen days of the receipt of a completed application. However, a temporary license or permit may be issued if a determination to issue or deny cannot be made within the specified time limit.
Proprietary schools currently in operation must be issued temporary licenses for a period not to exceed one hundred twenty days in order to give them time to obtain licenses as required by this chapter.
Section 59-59-100. The commission may refuse to issue or may suspend or revoke a license or permit but before doing so shall afford the applicant or license or permit holder an opportunity to be heard in person or by counsel. At least thirty days before the date set for the hearing the commission shall notify in writing the applicant or license or permit holder of the date of the hearing and the grounds for the action.
A person may appeal from the decision of the commission within thirty days after the filing of the decision to the court of common pleas of the county in which the school is located or the county in which the person aggrieved is a resident.
Section 59-59-110. The commission may adopt regulations necessary for the administration and enforcement of this chapter, and may establish an advisory committee of owners or operators of proprietary schools and of other persons with knowledge in the fields to which this chapter applies, to advise in its administration.
Section 59-59-120. A person who violates the provisions of this chapter is guilty of a misdemeanor and, upon conviction, must be fined not more than one hundred dollars or imprisoned not more than thirty days. Each day's violation constitutes a separate offense."
Regulations in effect
SECTION 2. Until the State Commission on Higher Education promulgates regulations pursuant to the provisions of Section 1, the regulations promulgated by the State Board of Education on proprietary schools in force on the effective date of this act continue to apply.
Repeal
SECTION 3. Chapter 61, Title 59 of the 1976 Code is repealed.
Funds and positions transferred
SECTION 4. All funds and positions in the Department of Education pursuant to this act shall be transferred to the Commission on Higher Education.
Time effective
SECTION 5. This act takes effect June 2, 1991, or upon approval by the Governor.
Approved the 1st day of October, 1991.