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Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
April 18, 2007
S. 321
S. Printed 4/18/07--H.
Read the first time March 13, 2007.
To whom was referred a Bill (S. 321) to amend Section 59-58-20, Code of Laws of South Carolina, 1976, relating to definitions in regard to the South Carolina Nonpublic Post Secondary Institution License Act, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
DANIEL T. COOPER for Committee.
EXPLANATION OF IMPACT:
This bill would have no impact on the General Fund of the State, or on federal and/or other funds. This bill only alters how existing funds can be spent and aligns statutory authority with existing administrative policy.
Approved By:
Harry Bell
Office of State Budget
TO AMEND SECTION 59-58-20, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS IN REGARD TO THE SOUTH CAROLINA NONPUBLIC POST SECONDARY INSTITUTION LICENSE ACT, SO AS TO REVISE CERTAIN DEFINITIONS; TO AMEND SECTION 59-58-30, RELATING TO EXCLUSIONS FROM THE DEFINITION OF A "NONPUBLIC EDUCATIONAL INSTITUTION" FOR PURPOSES OF THE ACT, SO AS TO PROVIDE FOR FURTHER EXCLUSIONS; AND TO AMEND SECTION 59-58-80, RELATING TO BONDS OR COLLATERAL FOR THE PROTECTION OF STUDENT TUITION AND FEES, SO AS TO FURTHER PROVIDE FOR THE PURPOSE FOR WHICH THE PROCEEDS OF A SURETY BOND AND MONIES IN THE TUITION GUARANTY FUND, RENAMED THE STUDENT RECOVERY FUND, MAY BE USED.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-58-20(10) of the 1976 Code is amended to read:
"(10) 'Salesman', 'agent', or 'solicitor' means any a person who, for remuneration, enrolls or seeks to enroll, away from the nonpublic educational institution's premises, a resident of South Carolina in courses or programs of instruction or study offered by the nonpublic educational institution. Administrators and faculty who make informational public appearances to include appearances at high school recruiting fairs, but whose primary task does not include service as a paid recruiter, are exempted from this definition."
SECTION 2. Section 59-58-30 of the 1976 Code is amended by adding:
"(13) institutions that offer programs and courses on federal military installations. ; and
(14) degree-granting institutions accredited by an accrediting agency recognized by the United States Department of Education that conduct occasional or incidental recruiting activities to include activities at high school recruiting fairs or through seasonal recruitment advertising rather than continuing and regular activities that would otherwise establish an actual presence in South Carolina as defined in this chapter."
SECTION 3. Section 59-58-80 of the 1976 Code is amended to read:
"Section 59-58-80. (A) Before an institution is licensed under this chapter, the commission may require that a surety bond be provided by the institution in an amount in compliance with the regulations prescribed by the commission. The obligation of the bond is that the institution, its officers, agents, and employees shall faithfully perform the terms and conditions of contracts for tuition and other instructional fees entered into between the institution and persons enrolling as students. The bond must be issued by a company authorized to do business in the State of South Carolina. The bond must be to the commission, in that form as approved by the commission, and is to be used only for payment of a refund of tuition and instructional fees due a student or potential student for the benefit of students who suffer financial losses of tuition and fees prepaid to an institution as a result of the closing of the institution. The commission may use the funds for these purposes to pay refunds to these students for unearned tuition and fees, to pay for or subsidize the cost of providing facilities and instruction for these students to complete their programs, or to pay expenses to store and maintain student records of these students.
(B) The bond company may not be relieved of liability on the bond unless it gives the institution and the commission ninety days' written notice of the company's intent to cancel the bond. If at any time the company that issued the bond cancels or discontinues the coverage, the institution's license is revoked as a matter of law on the effective date of the cancellation or discontinuance of bond coverage, unless a replacement bond is obtained and provided to the commissioner.
(C) Instead of the surety bond required in subsection (A), the institution may pledge other means of collateral acceptable to the State Treasurer, in an aggregate market value of the required bond. The commission shall deliver a safekeeping receipt of collateral to the State Treasurer to be held until the commission serves notice for its release to the commission.
(D) The commission may promulgate regulations establishing a student tuition guaranty recovery fund for nonpublic educational institutions. The fund must be used to reimburse benefit students because an institution has failed to perform faithfully its contractual obligations for tuition and instructional fees in the event of an institution institution's closing. The commission may use the funds for these purposes to pay refunds to these students for unearned tuition and prepaid fees, to pay for or subsidize the cost of providing facilities and instruction for these students to complete their programs, or to pay expenses to store and maintain student records of these students."
SECTION 4. This act takes effect upon approval by the Governor.
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