COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 552
(By Senators Oliverio, Dugan and Bailey)
____________
[Originating in the Committee on Education;
reported March 3, 1998.]
____________
A BILL to amend and reenact section two, article one, chapter
eighteen-b of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; to amend and reenact section
five, article three of said chapter; to further amend said
article by adding thereto a new section, designated section
six; and to amend and reenact section two, article five,
chapter eighteen-c of said code, all relating to authority
of board of directors of the state college system over
proprietary education institutions; defining private post- secondary education institution; making private post- secondary education institutions subject to provisions of
permit process; limiting use of term "college" in
institutional names; providing that certain institutional
changes do not affect legal status; defining probationary status permits and rights of institutions so classified;
providing exceptions to permit requirements; directing that
the state and all its agencies and political subdivisions
accept comparable credentials of private post-secondary
education institution graduates for purposes of employment,
promotion, training, taking examinations and meeting
licensure requirements; authorizing use of job training
assistance or benefits to enroll in courses offered by
private post-secondary education institutions; prohibiting
discrimination against students and graduates of private
post-secondary education institutions; and making students
of private post-secondary education institutions eligible to
participate in the higher education grant program.
Be it enacted by the Legislature of West Virginia:
That section two, article one, chapter eighteen-b of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; that section five, article
three of said chapter be amended and reenacted; that said article
be further amended by adding thereto a new section, designated
section six; and that section two, article five, chapter
eighteen-c of said code be amended and reenacted, all to read as
follows:
CHAPTER 18B. HIGHER EDUCATION.
ARTICLE 1. GOVERNANCE.
§18B-1-2. Definitions.
The following words when used in this chapter and chapter
eighteen-c of this code shall have the meaning hereinafter
ascribed to them unless the context clearly indicates a different
meaning:
(a) "Governing board" or "board" means the university of West
Virginia board of trustees or the board of directors of the state
college system, whichever is applicable within the context of the
institution or institutions referred to in this chapter or in
other provisions of law;
(b) "Governing boards" or "boards" means both the board of
trustees and the board of directors;
(c) "Freestanding community colleges" means southern West
Virginia community and technical college and West Virginia
northern community and technical college, which shall not be
operated as branches or off-campus locations of any other state
institution of higher education;
(d) "Community college" or "community colleges" means
community and technical college or colleges as those terms are
defined in this section;
(e) "Community and technical college", in the singular or
plural, means the freestanding community and technical colleges,
community and technical education programs of regional campuses
of West Virginia university, and divisions of state institutions of higher education which have a defined community and technical
college district and offer community and technical college
education in accordance with the provisions of section three-a,
article three of this chapter;
(f) "Community and technical college education" means the
programs, faculty, administration and funding associated with the
mission of community and technical colleges as provided in
section three-a, article three of this chapter, and also shall
include post-secondary vocational education programs in the state
as those terms are defined in this section. Community and
technical college education shall be delivered through a system
which includes eleven community and technical college districts
assigned to state institutions of higher education under the
jurisdiction of the board of directors and the board of trustees,
respectively;
(g) "Directors" or "board of directors" means the board of
directors of the state college system created pursuant to article
three of this chapter or the members thereof;
(h) "Higher educational institution" means any institution as
defined by Sections 401(f), (g) and (h) of the federal Higher
Education Facilities Act of 1963, as amended;
(i) "Post-secondary vocational education programs" means any
college-level course or program beyond the high school level
provided through an institution of higher education which results in or may result in the awarding of a two-year associate degree,
under the jurisdiction of the board of directors;
(j) "Rule" or "rules" means a regulation, standard, policy or
interpretation of general application and future effect;
(k) "Senior administrator" means the person hired by the
governing boards in accordance with section one, article four of
this chapter, with powers and duties as may be provided for in
section two of said article;
(l) "State college" means Bluefield state college, Concord
college, Fairmont state college, Glenville state college,
Shepherd college, West Liberty state college or West Virginia
state college;
(m) "State college system" means the state colleges and
community and technical colleges, and also shall include post- secondary vocational education programs in the state as those
terms are defined in this section;
(n) "State college system community and technical colleges"
means the freestanding community and technical colleges and
community and technical colleges operated on the campuses of
state colleges under the jurisdiction of the board of directors
of the state college system and all of their associated branches,
centers and off-campus locations;
(o) "State institution of higher education" means any
university, college or community and technical college in the state university system or the state college system as those
terms are defined in this section;
(p) "Trustees" and "board of trustees" means the university of
West Virginia board of trustees created pursuant to article two
of this chapter or the members thereof;
(q) "University", "university of West Virginia" and "state
university system" means the multicampus, integrated university
of the state, consisting of West Virginia university, including
West Virginia university at Parkersburg, Potomac state college of
West Virginia university, West Virginia university institute of
technology and the West Virginia university school of medicine;
Marshall university, including the Marshall university school of
medicine, and the Marshall university community and technical
college, the Marshall university graduate college; and the West
Virginia school of osteopathic medicine
;
(r) "University system community and technical colleges" means
Marshall university community and technical college, community
and technical education programs at West Virginia university at
Parkersburg, community and technical education programs at
Potomac state college of West Virginia university and West
Virginia university institute of technology community and
technical college under the jurisdiction of the university of
West Virginia board of trustees and all their associated
branches, centers and off-campus locations;
(s) "Regional campus" means West Virginia university at
Parkersburg, Potomac state college of West Virginia university,
and West Virginia university institute of technology. The chief
executive officer of a regional campus shall be known as "campus
president", shall serve at the will and pleasure of the president
of West Virginia university, and shall report to the president of
West Virginia university or his or her designee in the method
specified by West Virginia university. The board of advisors for
West Virginia university established pursuant to section one,
article six of this chapter shall serve as the advisory board for
West Virginia university and its regional campuses. The advisory
boards previously appointed for each regional campus shall be
known as "boards of visitors" and shall provide guidance to the
regional campus presidents. Each regional campus shall adopt
separate strategic plans required by section one-c of this
article;
and
(t) The advisory board previously appointed for the West
Virginia graduate college shall be known as the "board of
visitors" and shall provide guidance to Marshall university
graduate college;
and
(u) "Private post-secondary education institution" means an
institution that has provided education programs in West Virginia
for at least twenty years; has been accredited by an accrediting
agency recognized by the United States department of education under the Higher Education Act of 1965, as amended, for a total
of at least twenty years; has offered associate degree education
programs at a campus in West Virginia for a total of at least
fifteen years; has been authorized to operate in West Virginia
under section five, article three of this chapter for a total of
at least fifteen years; and has been owned and operated by a
private entity that has not undergone a change of ownership
resulting in a change of majority control in the last five years,
unless the new majority ownership has previously held an
ownership interest in a private post-secondary education
institution for at least five years. Additional campuses or
locations owned and supervised by an education institution that
meets the definition of a private post-secondary education
institution are deemed to qualify under the main campus for
purposes of meeting such definition, notwithstanding that the
additional campuses or locations may not meet all five of the
above stated standards. An accredited private post-secondary
education institution that offers associate degree programs, and
that has owned and supervised one or more West Virginia campuses
under permit issued pursuant to section five, article three of
this chapter for at least ten years prior to the first of July,
one thousand nine hundred ninety-eight, is deemed to meet the
standards required above.
ARTICLE 3. BOARD OF DIRECTORS OF THE STATE COLLEGE SYSTEM.
§18B-3-5. Permits required for West Virginia private post-
secondary education institutions,
correspondence, business, occupational and trade
schools; surety bonds and fees; issuance,
renewal and revocation of permit; reports;
rules; penalty and enforcement.
(a) It
shall be is unlawful for any person representing a
West
Virginia private post-secondary education institution
(hereinafter "private post-secondary education institution"), or
a correspondence, business, occupational or trade school inside
or outside this state, as such shall be defined by the board of
directors
of the state college system (hereinafter the "board")
by rule promulgated in accordance with article three-a, chapter
twenty-nine-a of this code
(all collectively called
"institutions" or "institution"), to solicit, sell or offer to
sell courses of instruction to any resident of this state for
consideration or remuneration unless the
school institution first
applies for a permit, or obtains a permit, from the
West Virginia
board of directors board in the manner and on the terms herein
prescribed.
All private training or education
al institutions, schools or
academies or other organizations shall apply for a permit from
the board
of directors of the state college system on forms provided by the board. This section does not apply to private
organizations that offer only tax return preparation courses.
Each initial application shall be accompanied by a nonrefundable
fee of two thousand dollars. The board may also assess an
additional fee based on any additional expense required to
evaluate the application. The board shall make a determination
on the initial permit application within ninety days after
receipt of the application and fee. An applicant for an initial
permit shall show proof at the time of filing an application that
adequate facilities are available and ready for occupancy and
that all instructional equipment, books and supplies and
personnel are in place and ready for operation. A representative
of the board shall make an on-site visit to all new applicants'
facilities to confirm its readiness for operation prior to
issuance of the initial permit if the facilities are located in
West Virginia.
A school An institution is considered to be established under
the provisions of this article on the date it first begins to
lawfully operate. An established
school institution is not
required to reapply for a permit as a result of changes in
governance; administration; ownership or form of operation.
After the first permit year an annual fee of five hundred dollars
is imposed on each
school institution for each campus it operates
in this state.
(b) Each application shall be accompanied by a surety bond in
the penal sum of thirty-five thousand dollars for any
school
institution which has its physical facilities located in this
state and which has operated in this state for at least ten
years:
Provided, That if the
school institution has changed
ownership within the last ten years by transfer of ownership
control to a person who is a spouse, parent, sibling, child or
grandchild of the previous owner, the surety bond shall continue
in the penal sum of thirty-five thousand dollars:
Provided,
however, That any
school institution which has operated in West
Virginia for less than ten years, including those
schools
institutions which have changed ownership within the last ten
years except those
schools institutions noted above who have
transferred ownership control to a spouse, parent, sibling, child
or grandchild of the previous owner within the last ten years and
any
schools institution located in another state which applies
for a permit hereunder, shall provide a surety bond of fifty
thousand dollars:
Provided further, That any
schools institution
may be required to increase its bond to one hundred fifty
thousand dollars if its accreditation is terminated for cause or
if the
school's institution's institutional eligibility under the
Higher Education Act of 1965, as amended, has been terminated for
cause:
And provided further, That expiration, nonrenewal or
voluntary relinquishment of accreditation or institutional eligibility under said act, or failure to meet the requirements
of one or more programs under said act, shall not be deemed a
termination for cause.
In addition, any
school institution may be required to
increase its bond to an amount not to exceed four hundred
thousand dollars if, in accordance with the standards of the
American institute of certified public accountants, the
school's
institution's audited financial statements are qualified because
the
school's institution's continued financial viability as an
ongoing concern is in doubt, and the board
of directors
determines an increased bond is reasonably necessary to protect
the financial obligations legally due the students then enrolled
at the institution.
A school An institution may be required to
maintain the increased bonding requirements described above until
all students attending classes at the date of termination either
graduate or withdraw. The bond may be continuous and shall be
conditioned to provide indemnification to any student suffering
loss as a result of any fraud or misrepresentation used in
procuring the student's enrollment; failure of the
school
institution to meet contractual obligations; or failure of the
school institution to meet the requirements of this section. The
bond shall be given by the
school institution itself as a blanket
bond covering all of its representatives. The surety on any such
bond may cancel the same upon giving thirty days' notice in writing to the principal on said bond and to the
state board of
directors board and thereafter shall be relieved of liability for
any breach of condition occurring after the effective date of
said cancellation.
(c) A permit shall be valid for one year corresponding to the
effective date of the bond and, upon application, accompanied by
the required fee and the surety bond as herein required, may be
renewed. All fees collected for the issuance or renewal of such
permit shall be deposited in the state treasury to the credit of
the board.
of directors.
The board may refuse a permit to any
school institution if the
board finds that the
school institution engages in practices
which are inconsistent with this section or with rules
and
regulations issued pursuant thereto. A permit issued hereunder,
upon fifteen days' notice and after a hearing, if a hearing is
requested by the
school institution may be suspended or revoked
by the board
of directors for fraud or misrepresentation in
soliciting or enrolling students, for failure of the
school
institution to fulfill its contract with one or more students who
are residents of West Virginia, or for violation of or failure to
comply with any provision of this section or with any regulation
of the
state board of directors board pertinent thereto. Prior
to the board taking any adverse action, including refusal,
suspension or revocation of a permit, the
school institution shall be given reasonable opportunity to take corrective
measures. Any refusal, suspension or revocation of a permit, or
any other adverse action against
a school an institution, shall
comply with all constitutional provisions, including due process,
relating to the protection of property rights.
(d) All
private post-secondary education institutions,
correspondence, business, occupational or trade schools which
have been issued a permit shall make annual reports to the board
of directors on forms furnished by the board and shall provide
such appropriate information as the board reasonably may require.
All
private post-secondary education institutions,
correspondence, business, occupational or trade schools which
have been issued a permit shall furnish to the board
of directors
a list of its official representatives. Each school shall be
issued a certificate of identification by the board
of directors
for each of its official representatives.
(e) The issuance of a permit pursuant to this section does not
constitute approval or accreditation of any course or
school
institution. No
school institution nor any representative of
a
an school institution shall may make any representation stating,
asserting or implying that a permit issued pursuant to this
section constitutes approval or accreditation by the state of
West Virginia,
state board of directors board or any other
department or agency of the state.
The board
of directors is hereby authorized to adopt rules and
conduct on-site reviews to evaluate academic standards maintained
by
schools institutions for the awarding of certificates,
diplomas and specialized associate degrees, which standards may
include curriculum, personnel, facilities, materials and
equipment:
Provided, That in the case of accredited
private
post-secondary education institutions, correspondence, business,
occupational and trade schools under permit on the first day of
July, one thousand nine hundred seventy-nine, having their
physical facilities located in this state, and which are
accredited by
the appropriate nationally recognized a national or
regional accrediting agency or association
approved recognized by
the United States department of education, the accrediting
agency's standards, procedures and criteria shall be accepted as
meeting applicable laws, standards and rules of the board of
directors:
Provided, however, That institutions, which are
institutionally accredited by accrediting agencies that are
recognized by the United States department of education to
establish academic standards for post-secondary education, may
offer post-secondary education
al programs leading to (and upon
successful completion of such programs award graduates)
certificates, diplomas and associate degrees in accordance with
the academic standards required by such accrediting agency. If
a review undertaken by the board indicates there may be deficiencies in the academic standards the institution maintains
in its education
al programs, that are of such a material nature
as to jeopardize continued accreditation, the board shall notify
the institution. If the board and the institution are unable to
agree on the deficiencies or the steps necessary to correct the
deficiencies, the board shall consult with the institution's
accrediting agency regarding an academically appropriate
resolution, which resolution may include a joint on-site review
by the board and the accrediting agency. The board may also
review the academic standards of unaccredited institutions and
may require such institutions to maintain recognized academic
standards that are reasonably appropriate to the nature of the
institution and the training offered. The board
of directors may
authorize an investigation of written student complaints alleging
a violation of this section, board rules or accreditation
standards and may take appropriate action based on the findings
of such an investigation. All evaluations or investigations of
private post-secondary education institutions, correspondence,
business, occupational and trade schools, and actions resulting
from such evaluations or investigations, shall be made in
accordance with rules promulgated by the board
of directors
pursuant to article three-a, chapter twenty-nine-a of this code.
For the purposes of this section,
proprietary schools private
post-secondary education institutions that award specialized associate degrees shall be defined as
institutions of higher
education private post-secondary education institutions, and
specialized associate degrees shall mean degrees awarded by
such
private post-secondary education institutions pursuant to a
program of not less than two academic years:
Provided, That
nothing herein shall be construed to qualify the said proprietary
schools institutions for additional state moneys not otherwise
qualified for under other provisions of this code.
(f) In regard to private,
post-secondary education
institutions and other proprietary
educational institutions
operating under this section of the code
which are accredited by
a national or regional accrediting agency or association
recognized by the United States department of education and which
provide training at a campus located in this state:
(1) Any rule or standard which is authorized by this or any
section of the code or other law and which is now in effect or
promulgated hereafter by the board
of directors (or other agency
with jurisdiction) shall be clearly, specifically and expressly
authorized by narrowly construed enabling law and shall be
unenforceable and without legal effect unless authorized by an
act of the Legislature under the provisions of article three-a,
chapter twenty-nine-a of this code.
(2) Notwithstanding any other provision of this section or
other law to the contrary, the institution's accrediting agency standards, procedures and criteria shall be accepted as the
standards and rules of the board
of directors (or other agency
with jurisdiction) and as meeting other law or legal requirements
relating to the operation of
proprietary institutions private
post-secondary education institutions or correspondence,
business, occupational and trade schools which such board or
other agency has the legal authority to enforce under any section
of the code or other law:
Provided, That nothing in this section
shall be construed to deny students the use of remedies that
would otherwise be available under state or federal consumer laws
or federal law relating to federal college financial assistance
programs.
(3) Accredited institutions operating hereunder are hereby
recognized as post-secondary. Academic progress shall be
measured and reported in credit hours and all reports/documents
filed on a credit hour basis unless the institution notifies the
board that it utilizes clock hours as its unit of measurement.
(g) A representative of any
school institution who solicits,
sells or offers to sell courses of instruction to any resident of
this state for consideration or remuneration unless the
school
institution first applies for a permit, or obtains a permit,
shall be is guilty of a misdemeanor and, upon conviction thereof,
shall be fined not more that two hundred dollars per day per
violation, or imprisoned in the county jail not more than sixty days, or both fined and imprisoned. No
private post-secondary
education institution, correspondence, business, occupational or
trade school
shall may maintain an action in any court of this
state to recover for services rendered pursuant to a contract
solicited by the
school institution if the
school institution did
not hold a valid permit at the time the contract was signed by
any of the parties thereto. The attorney general or any county
prosecuting attorney, at the request of the board or upon his or
her own motion, may bring any appropriate action or proceeding in
any court of competent jurisdiction for the enforcement of the
provisions of this section relating to permits, bonds and
sureties.
(h) In regard to institutions operating under this section,
all substantive standards and procedural requirements established
by the board
of directors (or the West Virginia state program
review entity or other agency with jurisdiction over institutions
operating hereunder) shall meet all substantive and procedural
standards of due process relating to the protection of an
individual citizen's property rights as provided for under the
United States constitution, and shall follow the substantive
standards and procedural requirements established by or under
authority of this section.
(i) The following provisions are applicable to certain
institutions authorized to operate under this section:
(1) An institution may use the term "college" in its name
only if it offers at least one associate degree program, such as
a specialized associate or occupational associate degree, or
associate of science or arts degree, at a campus or location in
this state: Provided, That any West Virginia institution using
the term "college" in its name on the first day of January, one
thousand nine hundred ninety-eight, may continue using the term
"college" in its name or in any future name, revision or
designation. A West Virginia branch campus or additional
location, or other training facility established by an
institution originating in and licensed by another state that is
not authorized to use the term "college" in its state of origin
may not use the term "college" in its West Virginia operations.
(2) Institutional changes, such as the addition of a new
campus or training facility, the relocation of the main campus,
appointment of new members to the private post-secondary
education institution board of directors or other controlling
body, appointment of a new president or other officers or
administrators, changes in the level of program offerings, or any
other such changes, may not cause the institution to be deemed to
be a new institution or otherwise adversely alter the
institution's legal status or rights granted under any section of
the code or other law unless specifically provided for therein.
(3) An institution that has not operated a campus in this state under permit issued by the board for at least three years
shall be issued a "probationary status permit". Probationary
status institutions must receive board approval prior to offering
any program of one year in length or longer and shall not offer
associate degree programs unless the campus is a subsidiary or
division of another education institution already authorized to
award associate degrees in West Virginia: Provided, That any
institution which has offered associate degree programs, or
nondegree programs longer than one year in length, at a campus in
this state on or after the first day of January, one thousand
nine hundred ninety-two, may continue to offer such programs.
§18B-3-6. Students of private post-secondary education
institutions eligible for state employment and job training opportunities provided by or on behalf of the state of West Virginia under equal protection of the law; private post-secondary education institution defined.
(a) Students and graduates of private post-secondary education
institutions are entitled to equal protection of the laws as
provided by the constitution of the United States and the
constitution of the state of West Virginia.
(b) For purposes of qualifying an individual for employment,
promotion or training opportunities offered by or through the state of West Virginia, and all of its agencies and political
subdivisions, the education and training achievements attained by
students and graduates of private post-secondary education
institutions, including academic credits, credentials and degrees
awarded shall be recognized and accepted to the same extent as
education and training achievements attained by students at
public community colleges or other education institutions:
Provided, That the academic credits, credentials and degrees
awarded are comparable to the education and training achievements
attained by students at public community colleges or other
education institutions. This subsection also includes
recognition of academic and job training credits, credentials,
degrees, and education accomplishments for purposes of qualifying
an individual to take civil service examinations, or licensing
examinations for licensure or legal authorization required for
employment opportunities in the private sector, or for meeting
the education requirements for a licensure or legal
authorization.
(c) Individuals who are eligible for job training assistance
or benefits through state, federal or joint state and federal job
training and assistance programs administered by or on behalf of
the state of West Virginia or any agency or political subdivision
of the state may use such job training assistance or benefits to
enroll in any job training program offered by a private post-secondary education institution or institutions to the extent
allowed by federal law or by the requirements of the job
assistance program, funding or benefit. This subsection applies
to any other type of assistance, benefits, or program that may be
used by an individual along with job training benefits,
regardless of whether the program is administered by or on behalf
of the department of labor, or any other department or agency.
(d) In regard to carrying out the provisions of subsections
(b) and (c) of this section, individuals shall be judged on their
own needs, merits, and accomplishments and shall not be treated
differently because of the type of education institution they
seek to attend or attended, or on any other basis that is not
clearly relevant. Rules, procedures, policies and practices that
result in a disparate impact upon individuals seeking to attend
private post-secondary education institutions or upon their
students or graduates, as compared to similarly situated
individuals at other private or public education or job training
institutions, are violations of this subsection.
(e) An institution that meets the standards to qualify as a
private post-secondary education institution as defined by
section two, article one of this chapter shall be designated as
a "West Virginia Private Post-secondary Education Institution,"
and the annual permit issued by the board shall identify the
institution utilizing only such designation and referring only to this section of the code:
Provided, That, except as may be
otherwise provided for in this section, the institution shall
continue operating under the provisions of section five of this
article, and the designation does not affect the legal rights and
legal responsibilities applicable to the institution under
section five nor may the designation cause any other legal
mandates, obligations or requirements to be applied to the
private post-secondary education institutions under any other
provision of this code.
CHAPTER 18C. STUDENT LOANS; SCHOLARSHIPS AND STATE AID.
ARTICLE 5. HIGHER EDUCATION GRANT PROGRAM.
§18C-5-2. Definitions.
(a) "Approved institution of higher education" means a state
institution of higher education as defined in section two,
article one, chapter eighteen-b of this code, and Alderson- Broaddus college, Appalachian bible college, Bethany college, the
college of West Virginia, Davis and Elkins college, Ohio Valley
college, Salem-Teikyo College university, the university of
Charleston, West Virginia Wesleyan college and Wheeling Jesuit
College university, all in West Virginia, and any other
institution of higher education in this state, public or private,
approved by the senior administrator. Effective the first day of
July, one thousand nine hundred ninety-nine, "approved institution of higher education" also means a private post- secondary education institution as defined in section two,
article one, chapter eighteen-b of this code: Provided, That it
is the intent of the Legislature that funding for the grant
program be increased so that making private post-secondary
education institution students eligible does not substantially
erode the availability of grant program funds to students at
approved institutions of higher education as defined herein.
(b) "Grant" or "grant program" means a grant or the grant
program authorized and established by the provisions of this
article.
(c) "Senior administrator" means the senior administrator
defined in section two, article one, chapter eighteen-b of this
code.