NC Board of Proprietary Schools.
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HB 327 — NC Board of Proprietary Schools.
Last action — Regular Message Sent To Senate
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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3Passed House
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4Passed Senate
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5To Executive
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6Enacted
This bill died with 2017-2018 Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
633 added · 698 removedPlain-language change summary
The latest version of House Bill 327 includes new identification for the bill and references its movement through the legislative process, along with a format change in how the bill is presented. Some previous text has been removed, likely for clarity or to streamline the bill. These changes are important because they help ensure that the bill is up-to-date with legislative standards and easy for lawmakers and the public to follow.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 21 HOUSE BILL 327* Committee Substitute Favorable 4/19/17 Short Title:
Representatives Blackwell, Fraley, and R.
Turner (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Education - Community Colleges, if favorable, Finance, if favorable, Appropriations March 14, 2017 A BILL TO BE ENTITLED AN ACT TO ESTABLISH THE NORTH CAROLINA PROPRIETARY SCHOOL LICENSURE ACT.
This Chapter shall be known as the "North Carolina Proprietary School Licensure Act." "§ 115F-5.115F-2.
"§ 115F-10.115F-3.
115F-35.115F-8.
Delivery systems employed by a proprietary school may include any(i) ofcorrespondence, the(ii) following:classroom instruction, (iii) instruction provided in hotels or other temporary dwelling units or areas, or (iv) electronic communications.
a.*H327-v-1* General Assembly Of North Carolina Session 2017 (5) Fund cap amount.
Correspondence.
b.
Classroom instruction.
c.
Instruction provided in hotels or other temporary dwelling units or areas.
*H327-v-2* General Assembly Of North Carolina Session 2017 d.
Electronic communications.
(5) Fund cap amount.
– Any individual, association, partnership, or corporationcorporation, and includes any director, receiver, referee, trustee, executor, or administrator,administrator as well as a natural person.
115F-60.115F-13.
"§ 115F-15.115F-4.
Page 2 House Bill 327*-Second Edition General Assembly Of North Carolina Session 2017 (7) Any established university, professional, or liberal arts college, public or private school regulated or recognized pursuant to Chapter 115C of the General Statutes or by any other State agency, or any State institution which has offered, Page 2 House Bill 327*-First Edition General Assembly Of North Carolina Session 2017 or which may offer, one or more courses covered in this Chapter, provided that the tuition, fees, and charges, if any, made by such university, college, high school, or State institution shall be collected by their regular officers in accordance with the rules prescribed by the board of trustees or governing body of such university, college, high school, or State institution.
"§ 115F-20.115F-5.
House Bill 327*-Second Edition Page 3 General Assembly Of North Carolina Session 2017 (g) The Board shall meet at stated times established by the Board but not less frequently than four times a year.
House Bill 327*-First Edition Page 3 General Assembly Of North Carolina Session 2017 (h) Members of the Board shall receive such per diem compensation and necessary travel and subsistence expenses while engaged in the official discharge of the official duties as provided in G.S.
"§ 115F-25.115F-6.
(9) Oversee the proprietary schools in the State in order to protect the health, safety, and welfare of the public by requiring the proprietary schools to maintain adequate, safe, and sanitary school locations, sufficient and proper facilities and equipment, sufficient and qualified teaching and administrative Page 4 House Bill 327*-Second Edition General Assembly Of North Carolina Session 2017 staff, and satisfactory programs of operation and instruction and to require proprietary schools to carry out advertised promises and contracts made with its students and patrons.
Under these rules, the board or agency shall pass on the adequacy of Page 4 House Bill 327*-First Edition General Assembly Of North Carolina Session 2017 equipment, curricula, and instructional personnel.
"§ 115F-30.115F-7.
(a) The Board shall establish an Office of Proprietary Schools as its principal administrative unit staffed with full-time State employees as provided by this section.
"§ 115F-35.115F-8.
(a) The Board shall establish reasonable fees for applications, initial licensure, license renewal, and inspections performed of proprietary schools pursuant to this Chapter in accordance with Article 2A of Chapter 150B of the General StatutesStatutes. not to exceed the following:
(1)All Initialfees license.and other moneys collected and received by the Board shall be used for the purposes of implementing this Chapter.
– Three thousand five hundred twenty dollars ($3,520), plus fifty-five dollars ($55.00) per program submitted for licensure.
(2) Annual license renewal.
– One thousand eight hundred seventy dollars ($1,870), plus fifty-five dollars ($55.00) per licensed program renewed and two hundred twenty dollars ($220.00) for each new program submitted for licensure.
A late fee of five hundred fifty dollars ($550.00) may be assessed for any license renewal application postmarked after March 15.
House Bill 327*-Second Edition Page 5 General Assembly Of North Carolina Session 2017 (3) Program additions submitted outside of the annual license renewal period.
– Two hundred twenty dollars ($220.00).
(4) Program revisions.
Show all 128 changed lines (88 more)
– Two hundred twenty dollars ($220.00).
(5) School relocations.
– Five hundred fifty dollars ($550.00).
(6) Remote sites.
– One thousand one hundred dollars ($1,100) initial site fee, plus an annual renewal fee of eight hundred twenty-five dollars ($825.00).
(7) Site assessments of verify compliance with statutes or rules or to approve program additions of changes.
– Five hundred fifty dollars ($550.00).
(b) All fees and other moneys collected and received by the Board shall be used for the purposes of implementing this Chapter.
(c)(b) There is established the Commercial Education Fund as a special fund consisting of fees collected pursuant to this Chapter.
(d)(c) No fee shall be refunded in the event an application is rejected or if a license is suspended or revoked.
"§ 115F-40.115F-9.
House Bill 327*-First Edition Page 5 General Assembly Of North Carolina Session 2017 (b) If a proprietary school has physical locations and offers classes in more than one county in the State, the school's operation in each county shall constitute a separate proprietary school for the purposes of licensure under this Chapter.
Page 6 House Bill 327*-Second Edition General Assembly Of North Carolina Session 2017 e.
This policy must define (i) the grading system of the school, (ii) the minimum grades considered satisfactory, (iii) conditions for interruption for unsatisfactory grades or progress and description of the probationary period, if any, allowed by the school, and (iv) conditions of reentrance for those students dismissed for unsatisfactory progress.
The policy must define the following:
1.
The grading system of the school.
2.
The minimum grades considered satisfactory.
3.
Conditions for interruption for unsatisfactory grades or progress.
4.
Description of the probationary period, if any, allowed by the school.
5.
Conditions of reentrance for those students dismissed for unsatisfactory progress.
Page 6 House Bill 327*-First Edition General Assembly Of North Carolina Session 2017 2.
House Bill 327*-Second Edition Page 7 General Assembly Of North Carolina Session 2017 (4) The school maintains a written record of the previous education and training of the student.
(5) A copy of the course outline, schedule of tuition, fees,fees and other charges, regulations pertaining to absences, grading policy, and the rules of operation and conduct shall be furnished to the student upon enrollment.
(7) Adequate records,records as prescribed by the Board,Board are kept to show student attendance, progress, or grades, and that satisfactory standards relating to attendance, progress, and conduct are enforced.
(10) The school does not exceed its enrollment limitation,limitation as established by the Board.
The holder of a license shall present a supplementary application,application as may be directed by the Board,Board for approval of additional programs of instruction, courses, or subjects in which it seeks to offer instruction during the effective period of the license.
"§ 115F-45.115F-10.
House Bill 327*-First Edition Page 7 General Assembly Of North Carolina Session 2017 (b) Unless otherwise prescribed by the Board, licenses shall be renewable annually on July 1 of each year if all of the following conditions are met:
(c) After a license is granted to any proprietary school by the Board on the basis of its application, the school shall notify the Board immediately of any material changes to the operation of the school or its courses or programs as set forth in the application, including changes in the ownership, administration, location, faculty, or the instructional program,program or other changes as may affect significantly the course of instruction offered.
The Board may issue a 90-day90-day, temporary operating license to a proprietary school upon its sale or transfer if the school held a valid, current license prior to the Page 8 House Bill 327*-Second Edition General Assembly Of North Carolina Session 2017 sale or transfer and if the Board finds that the school is likely to qualify after the sale or transfer for a license under this Chapter.
"§ 115F-50.115F-11.
Page 8 House Bill 327*-First Edition General Assembly Of North Carolina Session 2017 (8) During the licensure period, failed to provide and maintain adequate premises, equipment, materials, or supplies or exceeded the maximum enrollment for which the school or class was licensed.
"§ 115F-55.115F-12.
(b) An applicant for a proprietary school license shall file a bond with the Board executed by the applicant as a principal and by a bonding company authorized to do business in House Bill 327*-Second Edition Page 9 General Assembly Of North Carolina Session 2017 this State.
Notwithstanding the amounts set forth in this subsection, the Board may require any licensed school to increase its bond if it determines the increase is necessary to provide indemnification to House Bill 327*-First Edition Page 9 General Assembly Of North Carolina Session 2017 any student or a student's parent or legal guardian who may suffer a loss of tuition, fees, or any other instructional-related expenses paid to the school.
(2) A certificate of deposit (i) that is executed by a state or federal savings and loan association, state bank, or national bank that is doing business in North Carolina and whose accounts are insured by a federal depositors corporation, Page 10 House Bill 327*-Second Edition General Assembly Of North Carolina Session 2017 (ii) that is payable to North Carolina, (iii) that, if a negotiable certificate of deposit, is unrestrictedly endorsed to the Board or, if a nonnegotiable certificate of deposit, is assigned to the Board in a form satisfactory to the Board, and (iv) for which access to the certificate of deposit in favor of the State is subject to the same conditions as for a bond in subsection (c) of this section.
"§ 115F-60.115F-13.
Annual Gross Tuition Revenue Amount of Assessment $1.00 – $25,000 $200.00 $25,001 – $50,000 $250.00 $50,001 – $100,000 $300.00 $100,001 – $200,000 $400.00 $200,001 – $300,000 $500.00 $300,001 – $400,000 $600.00 $400,001 – $500,000 $700.00 $500,001 – $750,000 $1,000 $750,001 – $1,000,000 $1,250 $1,000,001 – $1,500,000 $1,500 $1,500,001 – $2,000,000 $2,000 Greater than $2,000,000 $2,000 plus one-twentieth of one percent Page 10 House Bill 327*-First Edition General Assembly Of North Carolina Session 2017 (.05%) of annual gross tuition revenue over $2,000,000.
House Bill 327*-Second Edition Page 11 General Assembly Of North Carolina Session 2017 (g) No payment to the Student Protection Fund shall be refunded in the event that a school's license application is rejected or a school's license is suspended or revoked.
115F-55.115F-12.
"§ 115F-65.115F-14.
"§ 115F-70.115F-15.
115F-55,115F-12, and paying the assessments into the Student Protection Fund under G.S.
115F-60115F-13 shall be guilty of a Class 3 misdemeanor.
"§ 115F-75.115F-16.
The Board shall establish a schedule of civil House Bill 327*-First Edition Page 11 General Assembly Of North Carolina Session 2017 penalties for violations of this Chapter.
(d) The Board may assess the costs of enforcement actions taken under this Chapter, including reasonable attorneys' fees, and transcriptions of a disciplinary hearing held by the Board or the Office of Administrative Hearings, to include the recording of the hearing by a Page 12 House Bill 327*-Second Edition General Assembly Of North Carolina Session 2017 court reporter and transcription of the proceeding against any person found to be in violation of this Chapter or rules adopted by the Board." SECTION 3.
115F-55.115F-12.
115F-55."115F-12." SECTION 4.
115F-55.115F-12.
115F-55."115F-12." SECTION 5.
115F-55.115F-12.
115F-55."115F-12." SECTION 6.
115F-40115F-9 to conduct courses other than those real estate courses described herein shall not be considered to be a private real estate school." SECTION 7.
Page 12 House Bill 327*-First Edition General Assembly Of North Carolina Session 2017 (a1) The General Assembly of North Carolina in recognition of the importance of higher education and of the particular significance attached to the personal credentials accessible through higher education and in consonance with statutory law of this State making unlawful any "unfair or deceptive acts or practices in the conduct of any trade or commerce," hereby declares it the policy of this State that all institutions conducting post-secondary degree activity in this State that are not subject to Chapter 115 or 115D115C,115D115, 115D, or 115F of the General Statutes, nor some other section of Chapter 116 of the General Statutes shall be subject to licensure under this section except as the institution or a particular activity of the institution may be exempt from licensure by one or another provision of this section.
House Bill 327*-Second Edition Page 13 General Assembly Of North Carolina Session 2017 If the institution has provided a bond pursuant to G.S.
115F-55,115F-12, the Board may waive the bond requirement under this subsection.
115F-55(d).115F-12(d).
115F-30."115F-7." SECTION 9.
115F-20,115F-5, as enacted by this act, and Article 8 of Chapter 115D of the General Statutes, the members serving on the State Board of Proprietary Schools as of the date this act becomes law who were appointed pursuant to G.S.
115F-20,115F-5, as enacted by this act.
115F-35,115F-8, formerly administered under G.S.
115F-60,115F-13, formerly administered under G.S.
Notwithstanding G.S.115F-35, as enacted by this act, the fees for applications, initial licensure, license renewal, and inspections performed of proprietary schools pursuant to this Chapter for the North Carolina Board of Proprietary Schools shall be as follows, until fees are established under G.S.
115F-35 in accordance with Article 2A of Chapter 150B of the General Statutes:
(1) Initial license.
– Three thousand two hundred dollars ($3,200), plus fifty dollars ($50.00) per program submitted for licensure.
(2) Annual license renewal.
– One thousand seven hundred dollars ($1,700), plus fifty dollars ($50.00) per licensed program renewed and two hundred dollars ($200.00) for each new program submitted for licensure.
A late fee of five hundred dollars ($500.00) may be assessed for any license renewal application postmarked after March 15.
(3) Program additions submitted outside of the annual license renewal period.
– Two hundred dollars ($200.00).
(4) Program revisions.
– Two hundred dollars ($200.00).
(5) School relocations.
– Five hundred dollars ($500.00).
(6) Remote sites.
– One thousand dollars ($1,000) initial site fee, plus an annual renewal fee of seven hundred fifty dollars ($750.00).
Page 14 House Bill 327*-Second Edition General Assembly Of North Carolina Session 2017 (7) Site assessments of verify compliance with statutes or rules or to approve program additions of changes.
– Five hundred dollars ($500.00).
SECTION 12.
The remainder of this act is effective when itthis act becomes law and applies to any person applying for an initial license or the renewal of a license for a proprietary school on or after that date.
House Bill 327*-Second327*-First Edition Page 1513
Show all 128 changed rows (88 more)
Action History
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Regular Message Sent To Senate
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Regular Message Received From House
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Passed 1st Reading
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Ref To Com On Rules and Operations of the Senate
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Passed 2nd Reading
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Passed 3rd Reading
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Reptd Fav Com Sub 2
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Cal Pursuant Rule 36(b)
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Placed On Cal For 04/26/2017
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Reptd Fav Com Substitute
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Re-ref Com On Finance
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Serial Referral To Finance Stricken
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Serial Referral To Appropriations Stricken
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Passed 1st Reading
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Ref to the Com on Education - Community Colleges, if favorable, Finance, if favorable, Appropriations
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Filed
Sponsors
- Fraley · Primary
- Hugh Blackwell · Primary
- Brian Turner · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 1 co-sponsors · 176 not signed on
Sponsors (2)
- Fraley
- Hugh Blackwell Republican
Co-sponsors (1)
- Brian Turner Democratic
Not signed on (176)
176 members have not signed on to this bill.
Show all 176 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 71 | 2 | 0 | 3 |
| Democratic | 15 | 0 | 0 | 0 |
| Republican | 27 | 0 | 0 | 1 |
| U | 1 | 0 | 0 | 0 |
| Total | 114 | 2 | 0 | 4 |
| % of votes cast | 95% | 2% | 0% | 3% |
How each member voted (120)
| Member | Party | Vote |
|---|---|---|
| Lewis | — | Yea |
| McNeill | — | Yea |
| Michaux | — | Nay |
| Millis | — | Yea |
| Rogers | — | Yea |
| Steinburg | — | Yea |
| Szoka | — | Yea |
| Zachary | — | Yea |
| Autry | — | Yea |
| Boswell | — | Yea |
| Conrad | — | Yea |
| Dobson | — | Yea |
| Dulin | — | Yea |
| Faircloth | — | Yea |
| Farmer-Butterfield | — | Yea |
| Fisher | — | Yea |
| Floyd | — | Yea |
| Fraley | — | Yea |
| Garrison | — | Yea |
| Gill | — | Yea |
| G.Adcock | — | Yea |
| DuaneHall | — | Yea |
| C.Graham | — | Yea |
| G.Graham | — | Yea |
| Jackson | — | Yea |
| G.Martin | — | Yea |
| R.Moore | — | Yea |
| B.Richardson | — | Yea |
| W.Richardson | — | Yea |
| B.Turner | — | Yea |
| J.Bell | — | Yea |
| Brawley | — | Yea |
| DestinHall | — | Yea |
| K.Hall | — | Yea |
| Beasley | — | Yea |
| Black | — | Yea |
| Boles | — | Yea |
| Bradford | — | Yea |
| Bumgardner | — | Yea |
| Burr | — | Yea |
| Cleveland | — | Yea |
| Collins | — | Yea |
| Dollar | — | Yea |
| Earle | — | Yea |
| Elmore | — | Yea |
| Goodman | — | Yea |
| Grange | — | Yea |
| Hanes | — | Yea |
| Hardister | — | Yea |
| Henson | — | Yea |
| Holley | — | Yea |
| Hunter | — | Yea |
| Insko | — | Yea |
| Lucas | — | Yea |
| Terry | — | Yea |
| Wray | — | Yea |
| Johnson | — | Yea |
| Malone | — | Yea |
| S.Martin | — | Yea |
| Stone | — | Yea |
| R.Turner | — | Yea |
| L.Bell | — | Nay |
| BrendenJones | — | Not Voting |
| T.Moore(Speaker) | — | Not Voting |
| BertJones | — | Not Voting |
| Horn | — | Yea |
| Hurley | — | Yea |
| Jordan | — | Yea |
| McElraft | — | Yea |
| McGrady | — | Yea |
| Murphy | — | Yea |
| Presnell | — | Yea |
| Saine | — | Yea |
| Speciale | — | Yea |
| Williams | — | Yea |
| Yarborough | — | Yea |
| Amos L. Quick, III | Democratic | Yea |
| Becky Carney | Democratic | Yea |
| Cecil Brockman | Democratic | Yea |
| Cynthia Ball | Democratic | Yea |
| Dante Pittman | Democratic | Yea |
| Deb Butler | Democratic | Yea |
| Eric Ager | Democratic | Yea |
| Garland E. Pierce | Democratic | Yea |
| Graig Meyer | Democratic | Yea |
| Joe John | Democratic | Yea |
| Marcia Morey | Democratic | Yea |
| Mary Belk | Democratic | Yea |
| Pricey Harrison | Democratic | Yea |
| Robert T. Reives, II | Democratic | Yea |
| Shelly Willingham | Democratic | Yea |
| Carl Ford | Republican | Yea |
| Dean Arp | Republican | Yea |
| Dennis Riddell | Republican | Yea |
| Donna McDowell White | Republican | Yea |
| Donny Lambeth | Republican | Yea |
| Frank Iler | Republican | Yea |
| Harry Warren | Republican | Yea |
| Hugh Blackwell | Republican | Yea |
| Jay Adams | Republican | Yea |
| Jimmy Dixon | Republican | Not Voting |
| John A. Torbett | Republican | Yea |
| John M. Blust | Republican | Yea |
| John Sauls | Republican | Yea |
| Julia C. Howard | Republican | Yea |
| Kelly E. Hastings | Republican | Yea |
| Kevin Corbin | Republican | Yea |
| Larry C. Strickland | Republican | Yea |
| Larry W. Potts | Republican | Yea |
| Mark Brody | Republican | Yea |
| Mike Clampitt | Republican | Yea |
| Mitchell S. Setzer | Republican | Yea |
| Phil Shepard | Republican | Yea |
| Sam Watford | Republican | Yea |
| Sarah Stevens | Republican | Yea |
| Stephen M. Ross | Republican | Yea |
| Ted Davis, Jr. | Republican | Yea |
| W. Ted Alexander | Republican | Yea |
| William D. Brisson | Republican | Yea |
| Carla D. Cunningham | U | Yea |
Subjects
Frequently asked questions
- Who sponsors HB 327?
- HB 327 is sponsored by Fraley, Hugh Blackwell (Republican), and Brian Turner (Democratic).
- What is the current status of HB 327?
- This bill died with 2017-2018 Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track HB 327?
- Track HB 327 free on One Click Politics — get push/email alerts when it moves.
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