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4818Ratification Number: 361Act Number: 284Type of Legislation: General Bill GBIntroducing Body: HouseIntroduced Date: 20020227Primary Sponsor: StilleAll Sponsors: StilleDrafted Document Number: l:\council\bills\gjk\21037sd02.docDate Bill Passed both Bodies: 20020509Governor's Action: SDate of Governor's Action: 20020528Subject: Nonpublic Post-Secondary Institution License Act, provisions regardingHistory Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20020613 Act No. A284 ------ 20020528 Signed by Governor ------ 20020522 Ratified R361 Senate 20020509 Read third time, enrolled for ratification Senate 20020508 Read second time Senate 20020507 Committee report: Favorable 04 SED Senate 20020328 Introduced, read first time, 04 SED referred to Committee House 20020328 Read third time, sent to Senate House 20020326 Read second time, unanimous consent for third reading on Thursday, 20020328 House 20020321 Committee report: Favorable 21 HEPW House 20020227 Introduced, read first time, 21 HEPW referred to Committee Versions of This Bill Revised on March 21, 2002 - Word format Revised on May 7, 2002 - Word format
(A284, R361, H4818)
AN ACT 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 ADD CERTAIN DEFINITIONS; TO AMEND SECTION 59-58-30, RELATING TO EXCLUSIONS FROM THE DEFINITION OF "NONPUBLIC EDUCATIONAL INSTITUTION", SO AS TO FURTHER PROVIDE FOR THOSE ACTIVITIES, COURSES, OR INSTITUTIONS THAT COME WITHIN THIS EXCLUSION; TO AMEND SECTION 59-58-50, RELATING TO LICENSE REQUIREMENTS FOR NONPUBLIC INSTITUTIONS, SO AS TO PROVIDE THAT LICENSES MAY BE GRANTED TO NONDEGREE GRANTING INSTITUTIONS FOR LESS THAN TWELVE MONTHS; TO AMEND SECTION 59-58-60, RELATING TO USE OF THE TERM "COLLEGE" OR "UNIVERSITY" IN A NAME, SO AS TO REVISE THE CIRCUMSTANCES WHEN THESE TERMS MAY AND MAY NOT BE USED; TO AMEND SECTION 59-58-70, RELATING TO FEES, SO AS TO PROVIDE FOR FURTHER SITUATIONS WHEN PENALTIES MAY BE IMPOSED; TO AMEND SECTION 59-58-100, RELATING TO ENROLLMENT CONTRACTS AND OTHER AGREEMENTS BEING VOID WITHOUT A LICENSE, SO AS TO CORRECT A GRAMMATICAL REFERENCE; AND TO AMEND SECTION 59-58-110, RELATING TO DENIAL, REVOCATION, OR SUSPENSION OF LICENSES, SO AS TO FURTHER PROVIDE FOR WHEN THE COMMISSION ON HIGHER EDUCATION MAY PROCEED WITH A DENIAL OR REVOCATION AND TO AUTHORIZE THE COMMISSION TO ALSO IMPOSE PROBATION AND DELAY A NEW CLASS TERM.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 59-58-20 of the 1976 Code, as added by Act 497 of 1992, is amended by adding:
"(17) 'Operating or soliciting' means having actual presence within the State and includes for the purposes of application of this chapter:
(a) an instructional site within South Carolina whether owned, leased, rented, or provided without charge;
(b) instruction whether theoretical or clinical within or originating from South Carolina utilizing teachers, trainers, counselors, advisors, sponsors, or mentors;
(c) an agent, recruiter, in-state liaison personnel, institution, or business that solicits for enrollment or credits or for the award of an educational credential; and
(d) advertising, promotional material, or public solicitation in any form that targets South Carolina residents through distribution or advertising in the State.
(18) 'Religious or theological training' is the awarding of nonacademic degrees, diplomas, or certificates with a specific theological, biblical, divinity, or other religious designation."
SECTION 2. Section 59-58-30 of the 1976 Code, as added by Act 497 of 1992, is amended to read:
"Section 59-58-30. The definition of 'nonpublic educational institution' does not include:
(1) any degree-granting school, institute, college, junior college, university, or entity chartered by the Secretary of State before 1953;
(2) institutions that:
(a) are independent or church-related,
(b) are two or four-year degree granting,
(c) have their primary emphasis on liberal arts,
(d) are accredited by the Southern Association of Colleges and Schools,
(e) are nonprofit, and
(f) have their primary place of business in South Carolina.
(3) institutions offering courses of instruction only at the kindergarten through high school level;
(4) institutions whose sole purpose is religious or theological training;
(5) institutions offering noncredit bearing courses exclusively for avocational purposes, as determined by the commissioner;
(6) institutions directly supported, entirely or partly, by the State of South Carolina;
(7) aviation institutions or instructors that offer flight training with the statement or implication that their primary objective is to train persons for personal or recreational purposes and not for gainful employment;
(8) courses or programs regulated and licensed or approved under an occupational licensing law of the State of South Carolina;
(9) noncredit bearing courses or programs sponsored by employers solely for the training of their employees if:
(a) the training is conducted by an employee of the sponsoring employer or if the sponsoring employer contracts with a provider to conduct the training;
(b) the sponsoring employer bears the expense of providing the training by paying the training provider directly, and this provision does not mean paying the employee after the employee pays; and
(c) the sponsoring employer allows employees to attend the training on company time if the training takes place during regular work hours.
(10) noncredit bearing courses or programs that do not prepare or qualify individuals for employment in any occupation or trade sponsored by recognized trade, business, or professional organizations solely for the instruction of their members;
(11) institutions that offer only noncredit bearing intensive review courses such as those designed to prepare students for certified public accountancy tests, law school aptitude tests, bar examinations, medical college admissions tests, and other license preparation tests;
(12) out-of-state institutions that formally collaborate with public South Carolina institutions in offering distance education coursework in this State and where the South Carolina institution offers the degree;
(13) institutions that offer programs and courses on federal military installations."
Licenses for less than twelve months
SECTION 3. Section 59-58-50(F) of the 1976 Code, as added by Act 497 of 1992, is amended to read:
"(F) Licenses for nondegree-granting institutions shall normally be granted for twelve months, renewable annually from date of issue, or other date in excess of twelve months set by the commission to stagger the renewal dates of all institutions. The commission may issue licenses to nondegree-granting institutions for less than twelve months as circumstances justify. Licenses and renewal of licenses for degree-granting institutions may be granted for periods not to exceed five years. Renewal is contingent upon filing appropriate applications for renewal with the commissioner. The institution and its courses or programs, facilities, faculty, and all other operations must meet the requirements for an original license at the effective date of the renewal."
Use of term "college" or "university"
SECTION 4. Section 59-58-60 of the 1976 Code, as added by Act 497 of 1992, is amended to read:
"Section 59-58-60. No individual, school, board, association, corporation, business, institution, or other entity may use the term 'college' or 'university' or use any other name, title, literature, catalogs, pamphlets, or descriptive matter which implies that it is an institution of higher learning or that it may grant educational credentials or credit or academic or professional degrees, except as follows:
(A) An institution the commission licenses may use the term 'college' in its name only if it offers at least one program leading to an associate or higher degree.
(B) An institution may use the term 'university' in its name if the institution is:
(1) operating and licensed in South Carolina and using the term 'university' in its name before the effective date of this chapter, or
(2) an out-of-state institution that is chartered or licensed in its home state using the term 'university' in its name.
Any other institution must petition the commission for approval to use the term 'university' in its name."
SECTION 5. Section 59-58-70 of the 1976 Code, as added by Act 497 of 1992, is amended to read:
"Section 59-58-70. The commission may set reasonable fees for administration of this chapter including, but not limited to, licenses, agent permits, renewals, penalties for late renewals, penalties for failure to provide information as required, penalties for repeat violations, consultants, complaint investigations, and supplementary applications for amendments of the license."
SECTION 6. Section 59-58-100 of the 1976 Code, as added by Act 497 of 1992, is amended to read:
"Section 59-58-100. All enrollment agreements, contracts, and promissory notes or other evidence of indebtedness entered into by nonpublic educational institutions with students or prospective students are void unless the institution holds a valid license, and the agent enrolling the student holds a valid permit as required by this chapter."
License denial, revocation, probation, and delay
SECTION 7. Section 59-58-110 of the 1976 Code, as added by Act 497 of 1992, is amended to read:
"Section 59-58-110. (A) Before a final proceeding to deny, revoke, or suspend a license or permit, the commission shall give to the person to be affected by the decision notice of facts and conduct which warrant the intended action and an opportunity to show compliance with the minimum requirements for a license or permit. If the commission determines that the violations are habitual, wilful, and therefore likely to reoccur, the commission may proceed with denial or revocation though the institution complies or agrees to comply with the standards for licensure.
(B) In any final agency proceeding to deny a license or permit to any person properly applying for one, or to revoke or suspend the license or permit of any licensee or permit holder, the commission shall give the person to be affected by the intended action notice an opportunity for a hearing as provided in the Administrative Procedures Act.
(C) The commission may give the institution a period of probation if in its judgment any unsatisfactory condition can reasonably be corrected within such time. The commission may also require that an institution delay a new class term."
SECTION 8. This act takes effect upon approval by the Governor.
Ratified the 22nd day of May, 2002.
Approved the 28th day of May, 2002.
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