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Citations Affected: IC 21-7; IC 21-18; IC 21-18.5; IC 22-4.1; IC 24-5.

Effective: Upon passage.

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Clere , Hale

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    January 17, 2013, read first time and referred to Committee on Education.
    January 28, 2013, amended, reported _ Do Pass.

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Digest Continued

in provisions relating to administration of postsecondary credit bearing proprietary institutions. Repeals definition of "accreditation". Adds definition of "authorization". Makes changes to the definition of "postsecondary credit bearing proprietary educational institution". Repeals requirements for the issuance of agent permits. Repeals definition of "agent's permit". Provides that a person who knowingly and intentionally makes certain misrepresentations regarding a postsecondary credit bearing proprietary educational institution is subject to action by the attorney general's office for making a deceptive consumer sale. Reduces from $1,000,000 to $500,000 the amount of money that must accumulate in the student assurance fund. Makes technical amendments.

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PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning higher education.

SOURCE: IC 21-7-13-13.5; (13)HB1314.1.1. -->     SECTION 1. IC 21-7-13-13.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.5. "Degree granting" refers to any institution that offers a degree program and offers instructional or educational services or training in Indiana.

SOURCE: IC 21-18-12; (13)HB1314.1.2. -->     SECTION 2. IC 21-18-12 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 12. Out-of-State Public and Not-for-Profit Institutions
    Sec. 1. All out-of-state public and not-for-profit degree granting institutions seeking to offer instructional or educational services or training in Indiana, and the instructional or educational services or training programs, including degree programs, offered by these institutions, whether on-site, online, or through any combination of these or other instructional modalities, must be authorized by

the executive officer of the commission, who may develop procedures for authorizing such institutions to offer such instructional programs in Indiana, and who may enter into interstate reciprocity agreements for this purpose.

SOURCE: IC 21-18.5-1-5; (13)HB1314.1.3. -->     SECTION 3. IC 21-18.5-1-5, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) The Indiana commission on proprietary education is abolished on July 1, 2012.
    (b) Unless otherwise specified in a memorandum of understanding described in subsection (e), the following are transferred on July 1, 2012, from the Indiana commission on proprietary education to the commission for higher education established by IC 21-18-2-1:
        (1) All real and personal property of the Indiana commission on proprietary education.
        (2) All assets and liabilities of the Indiana commission on proprietary education.
        (3) All appropriations to the Indiana commission on proprietary education.
    (c) All powers and duties of the Indiana commission on proprietary education before its abolishment pertaining to the accreditation of a postsecondary credit bearing proprietary educational institution are transferred to the board for proprietary education established by IC 21-18.5-5-1.
    (d) All powers and duties of the Indiana commission on proprietary education before its abolishment pertaining to the accreditation of a postsecondary proprietary educational institution (as defined in IC 22-4.1-21-9) are transferred to the state workforce innovation council established by IC 22-4-18.1-3.
    (e) The commission for higher education established by IC 21-18-2-1 may enter into a memorandum of understanding with the state workforce innovation council established by IC 22-4-18.1-3 to implement the transition of the responsibilities and obligations of the Indiana commission on proprietary education before its abolishment to the commission for higher education and the state workforce innovation council.
    (f) Rules that were adopted by the Indiana commission on proprietary education before July 1, 2012, shall be treated as though the rules were adopted by the state workforce innovation council established by IC 22-4-18.1-3 until the state workforce innovation council or the department of workforce development adopts rules under IC 4-22-2 to implement IC 22-4.1-21.
    (g) An accreditation granted or a permit issued under IC 21-17-3 by

the Indiana commission on proprietary education before July 1, 2012, shall be treated after June 30, 2012, as an accreditation authorization granted or a permit issued by the:
        (1) board for proprietary education established by IC 21-18.5-5-1 if the accreditation pertains to a postsecondary credit bearing proprietary educational institution (as defined in IC 21-18.5-2-12); or
        (2) state workforce innovation council department of workforce development if the accreditation pertains to a postsecondary proprietary educational institution (as defined in IC 22-4.1-21-9).
     (h) An accreditation granted or a permit issued before May 15, 2013, under IC 21-17-3 (repealed):
        (1) by the board for proprietary education established by IC 21-18.5-5-1 shall be treated as an authorization granted by the board for proprietary education; and
        (2) by the state workforce innovation council shall be treated as an authorization granted by the department of workforce development.
    (h) (i) Proceedings pending before the Indiana commission on proprietary education on July 1, 2012, shall be transferred from the Indiana commission on proprietary education to:
        (1) the board for proprietary education established by IC 21-18.5-5-1 for a proceeding pertaining to a postsecondary credit bearing proprietary educational institution (as defined in IC 21-18.5-2-12); or
        (2) the state workforce innovation council if the proceeding pertains to a postsecondary proprietary educational institution (as defined in IC 22-4.1-21-9).

SOURCE: IC 21-18.5-2-2; (13)HB1314.1.4. -->     SECTION 4. IC 21-18.5-2-2 IS REPEALED [EFFECTIVE UPON PASSAGE]. Sec. 2. "Accreditation", for purposes of IC 21-18.5-6, means certification of a status of approval or authorization by the board for proprietary education to conduct business as a postsecondary credit bearing proprietary educational institution.

SOURCE: IC 21-18.5-2-4; (13)HB1314.1.5. -->     SECTION 5. IC 21-18.5-2-4 IS REPEALED [EFFECTIVE UPON PASSAGE]. Sec. 4. "Agent's permit", for purposes of IC 21-18.5-6, means a nontransferable written authorization issued to a person by the board for proprietary education to solicit a resident of Indiana to enroll in a course offered or maintained by a postsecondary credit bearing proprietary educational institution.

SOURCE: IC 21-18.5-2-5; (13)HB1314.1.6. -->     SECTION 6. IC 21-18.5-2-5, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. "Application", for purposes of

IC 21-18.5-6, means a written request for accreditation or an agent's permit authorization on forms supplied by the board for proprietary education.

SOURCE: IC 21-18.5-2-5.5; (13)HB1314.1.7. -->     SECTION 7. IC 21-18.5-2-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5.5. "Authorization", for purposes of IC 21-18.5-6, means certification of a status of approval or authorization by the board for proprietary education to conduct business as a postsecondary credit bearing proprietary educational institution.

SOURCE: IC 21-18.5-2-12; (13)HB1314.1.8. -->     SECTION 8. IC 21-18.5-2-12, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. (a) "Postsecondary credit bearing proprietary educational institution" means a degree granting and credit bearing institution that provides instructional or educational services or training, in a technical, professional, mechanical, business, or industrial occupation, whether on-site, online, or through any combination of these or other instructional modalities, and is accredited by an accrediting agency recognized by the United States Department of Education or is seeking and progressing toward accreditation by an accrediting agency recognized by the United States Department of Education.
    (b) The term does not include the following:
        (1) An Indiana state educational institution or another Indiana educational institution established by law and financed in whole or in part by public funds.
        (2) A postsecondary proprietary educational institution approved or regulated by any other state regulatory board, agency, or commission other than the board for proprietary education.
        (3) An elementary or secondary school attended by students in kindergarten or grades 1 through 12 and supported in whole or in part by private tuition payments.
        (4) Any educational institution or educational training that:
            (A) is maintained or given by an employer or a group of employers, without charge, for employees or for individuals the employer anticipates employing;
            (B) is maintained or given by a labor organization, without charge, for its members or apprentices;
            (C) offers exclusively instruction that is clearly self-improvement, motivational, or avocational in intent (including instruction in dance, music, or self-defense, and private tutoring); or

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            (D) is a Montessori or nursery school.
        (5) A privately endowed two (2) or four (4) year degree granting institution that is regionally accredited and whose principal campus is located in Indiana.
         (6) Out-of-state public and not-for-profit degree granting institutions offering instructional or educational services or training in Indiana.
        (7) A religious institution that offers educational instruction or an educational program of a clearly religious nature.

SOURCE: IC 21-18.5-5-2; (13)HB1314.1.9. -->     SECTION 9. IC 21-18.5-5-2, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) The board for proprietary education consists of the following seven (7) members:
        (1) The state superintendent or the superintendent's designee.
        (2) The executive officer of the commission for higher education or the executive officer's designee.
        (3) Five (5) members appointed by the governor.
    (b) The members appointed by the governor under subsection (a) serve for a term of four (4) years.
    (c) Not more than three (3) of the members appointed by the governor may be members of the same political party.
    (d) Of the five (5) members appointed by the governor:
        (1) one (1) must have been engaged for a period of at least five (5) years immediately preceding appointment in an executive or a managerial position in a postsecondary proprietary educational institution subject to IC 21-18.5-6;
        (2) one (1) must have been engaged in administering or managing an industrial employee training program for a period of at least five (5) years immediately preceding appointment; and
        (3) three (3) must be representatives of the public at large who are not representatives of the types of postsecondary credit bearing proprietary educational institutions to be accredited. authorized.
For purposes of subdivision (3), an elected or appointed state or local official or a member of a private or public school may not be appointed as a representative of the public at large.
    (e) An appointment to fill a vacancy occurring on the board for proprietary education is for the unexpired term.

SOURCE: IC 21-18.5-6-2; (13)HB1314.1.10. -->     SECTION 10. IC 21-18.5-6-2, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. A person may not do business as a postsecondary credit bearing proprietary educational institution in Indiana without having obtained accreditation authorization by the

board for proprietary education under this chapter, except for a religious institution that offers educational instruction or an educational program of a clearly religious nature.

SOURCE: IC 21-18.5-6-2.5; (13)HB1314.1.11. -->     SECTION 11. IC 21-18.5-6-2.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.5. A person may not do business as a degree-granting institution in Indiana unless:
         (1) the institution is accredited by an accrediting agency recognized by the United States Department of Education or is seeking and progressing toward accreditation by an accrediting agency recognized by the United States Department of Education; or
        (2) the institution is a religious institution that offers educational instruction or an educational program of a clearly religious nature.

SOURCE: IC 21-18.5-6-3; (13)HB1314.1.12. -->     SECTION 12. IC 21-18.5-6-3, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. Applications for accreditation authorization under this chapter must be filed with the board for proprietary education and accompanied by an application fee of at least one hundred dollars ($100) for processing the application and evaluating the postsecondary credit bearing proprietary educational institution.

SOURCE: IC 21-18.5-6-4; (13)HB1314.1.13. -->     SECTION 13. IC 21-18.5-6-4, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. An application for accreditation authorization under this chapter must include at least the following information:
        (1) The name and address of the postsecondary credit bearing proprietary educational institution and the institution's officers.
        (2) The places where the courses are to be provided.
        (3) The types of courses to be offered, the form of instruction to be followed with the class, shop, or laboratory, and the hours required for each curriculum.
        (4) The form of certificate, diploma, or degree to be awarded.
        (5) A statement of the postsecondary credit bearing proprietary educational institution's finances.
        (6) A description of the postsecondary credit bearing proprietary educational institution's physical facilities, including classrooms, laboratories, library, machinery, and equipment.
        (7) An explicit statement of policy with reference to:
            (A) solicitation of students;

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            (B) payment and amount of student fees; and
            (C) conditions under which students are entitled to a refund in part or in full of fees paid, including a statement concerning the existence of the career college student assurance fund established under section 6 of this chapter.
        (8) Provisions for liability insurance of students.
        (9) Maximum student-teacher ratio to be maintained.
        (10) Minimum requirements for instructional staff.

SOURCE: IC 21-18.5-6-5; (13)HB1314.1.14. -->     SECTION 14. IC 21-18.5-6-5, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. The board for proprietary education shall require each postsecondary credit bearing proprietary educational institution to include in each curriculum catalog and promotional brochure the following:
        (1) A statement indicating that the postsecondary credit bearing proprietary educational institution is regulated authorized by the board for proprietary education under this chapter.
        (2) The board for proprietary education's mailing address and telephone number.

SOURCE: IC 21-18.5-6-6; (13)HB1314.1.15. -->     SECTION 15. IC 21-18.5-6-6, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) The career college student assurance fund is established to provide indemnification to a student or an enrollee of a postsecondary credit bearing proprietary educational institution who suffers loss or damage as a result of:
        (1) the failure or neglect of the postsecondary credit bearing proprietary educational institution to faithfully perform all agreements, express or otherwise, with the student, enrollee, one (1) or both of the parents of the student or enrollee, or a guardian of the student or enrollee as represented by the application for the institution's accreditation authorization and the materials submitted in support of that application;
        (2) the failure or neglect of the postsecondary credit bearing proprietary educational institution to maintain and operate a course or courses of instruction or study in compliance with the standards of this chapter; or
        (3) an agent's misrepresentation in procuring the student's enrollment.
    (b) The board for proprietary education shall administer the fund.
    (c) The expenses of administering the fund shall be paid from money in the fund.
    (d) The treasurer of state shall invest the money in the fund not

currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.
    (e) Money in the fund at the end of a state fiscal year does not revert to the state general fund but remains available to be used for providing money for reimbursements allowed under this chapter.
    (f) Upon the fund acquiring fifty thousand dollars ($50,000), the balance in the fund must not become less than fifty thousand dollars ($50,000). If:
        (1) a claim against the fund is filed that would, if paid in full, require the balance of the fund to become less than fifty thousand dollars ($50,000); and
        (2) the board for proprietary education determines that the student is eligible for a reimbursement under the fund;
the board for proprietary education shall prorate the amount of the reimbursement to ensure that the balance of the fund does not become less than fifty thousand dollars ($50,000), and the student is entitled to receive that balance of the student's claim from the fund as money becomes available in the fund from contributions to the fund required under this chapter.
    (g) The board for proprietary education shall ensure that all outstanding claim amounts described in subsection (f) are paid as money in the fund becomes available in the chronological order of the outstanding claims.
    (h) A claim against the fund may not be construed to be a debt of the state.

SOURCE: IC 21-18.5-6-8; (13)HB1314.1.16. -->     SECTION 16. IC 21-18.5-6-8, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) Upon receipt of an application for accreditation authorization under this chapter, the board for proprietary education shall make an investigation to determine the accuracy of the statements in the application to determine if the postsecondary credit bearing proprietary educational institution meets the minimum standards for accreditation. authorization.
    (b) During the investigation under subsection (a), the board for proprietary education may grant a temporary status of accreditation. authorization. The temporary status of accreditation authorization is sufficient to meet the requirements of this chapter until a determination on accreditation authorization is made.

SOURCE: IC 21-18.5-6-11; (13)HB1314.1.17. -->     SECTION 17. IC 21-18.5-6-11, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. Full accreditation authorization under this chapter may not be issued unless and until the board for proprietary

education finds that the postsecondary credit bearing proprietary educational institution meets minimum standards that are appropriate to that type or class of postsecondary credit bearing proprietary educational institution, including the following minimum standards:
        (1) The postsecondary credit bearing proprietary educational institution has a sound financial structure with sufficient resources for continued support.
        (2) The postsecondary credit bearing proprietary educational institution has satisfactory training or educational facilities with sufficient tools, supplies, or equipment and the necessary number of work stations or classrooms to adequately train, instruct, or educate the number of students enrolled or proposed to be enrolled.
        (3) The postsecondary credit bearing proprietary educational institution has an adequate number of qualified instructors or teachers, sufficiently trained by experience or education, to give the instruction, education, or training contemplated.
        (4) The advertising and representations made on behalf of the postsecondary credit bearing proprietary educational institution to prospective students are truthful and free from misrepresentation or fraud.
        (5) The charge made for the training, instruction, or education is clearly stated and based upon the services rendered.
        (6) The premises and conditions under which the students work and study are sanitary, healthful, and safe according to modern standards.
        (7) The postsecondary credit bearing proprietary educational institution has and follows a refund policy approved by the board for proprietary education.
        (8) The owner or chief administrator of the postsecondary credit bearing proprietary educational institution is subject to a background check by the board for proprietary education and has not been convicted of a felony.
        (9) The owner or chief administrator of the postsecondary credit bearing proprietary educational institution has not been the owner or chief administrator of a postsecondary credit bearing proprietary educational institution that has had its accreditation authorization revoked or has been closed involuntarily in the five (5) year period preceding the application for accreditation. authorization. However, if the owner or chief administrator of the postsecondary credit bearing proprietary educational institution has been the owner or chief administrator of a

postsecondary credit bearing proprietary educational institution that has had its accreditation authorization revoked or has been closed involuntarily more than five (5) years before the application for accreditation, authorization, the board for proprietary education may issue full accreditation authorization at the board for proprietary education's discretion.

SOURCE: IC 21-18.5-6-12; (13)HB1314.1.18. -->     SECTION 18. IC 21-18.5-6-12, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. (a) After an investigation and a finding that the information in the application is true and that the postsecondary credit bearing proprietary educational institution meets the minimum standards, the commission on postsecondary proprietary education board for proprietary education shall issue an accreditation authorization to the postsecondary credit bearing proprietary educational institution upon payment of an additional fee of at least twenty-five dollars ($25). An applicant's market research may not be considered or required by the board for proprietary education as a condition for accrediting authorizing or renewing the accreditation of or for approval authorization of the programs of a postsecondary credit bearing proprietary educational institution.
    (b) The board for proprietary education may waive inspection of a postsecondary credit bearing proprietary educational institution that has been accredited authorized by an accrediting unit agency recognized by the United States Department of Education whose standards are approved by the board for proprietary education as meeting or exceeding the requirements of this chapter.
    (c) A valid license, approval authorization to operate, or other form of accreditation authorization issued to a postsecondary credit bearing proprietary educational institution by another state may be accepted, instead of inspection, if:
        (1) the requirements of that state meet or exceed the requirements of this chapter; and
        (2) the other state will, in turn, extend reciprocity to postsecondary credit bearing proprietary educational institutions accredited authorized by the board for proprietary education.
     (d) The board for proprietary education may join interstate reciprocity agreements and authorize an institution to operate in Indiana, if the:
        (1) institution; and
        (2) state in which both the institution's:
            (A) principal campus is located; and
            (B) institutional accreditation is provided;

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are members of the interstate reciprocity agreement.
    (d) (e) An accreditation authorization issued under this section expires one (1) year following the accreditation's authorization's issuance.
    (e) (f) An accredited authorized postsecondary credit bearing proprietary educational institution may renew the institution's accreditation authorization annually upon:
        (1) the payment of a fee of at least twenty-five dollars ($25); and
        (2) continued compliance with this chapter.

SOURCE: IC 21-18.5-6-13; (13)HB1314.1.19. -->     SECTION 19. IC 21-18.5-6-13, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13. Accreditation Authorization may be revoked by the board for proprietary education:
        (1) for cause upon notice and an opportunity for a hearing before the board for proprietary education; and
        (2) for the accredited authorized postsecondary credit bearing proprietary educational institution failing to make the appropriate quarterly contributions to the career college student assurance fund not later than forty-five (45) days after the end of a quarter.

SOURCE: IC 21-18.5-6-14; (13)HB1314.1.20. -->     SECTION 20. IC 21-18.5-6-14, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 14. (a) A postsecondary credit bearing proprietary educational institution, after notification that the institution's accreditation authorization has been refused, revoked, or suspended, may apply for a hearing before the board for proprietary education concerning the institution's qualifications. The application for a hearing must be filed in writing with the board for proprietary education not more than thirty (30) days after receipt of notice of the denial, revocation, or suspension.
    (b) The board for proprietary education shall give a hearing promptly and with not less than ten (10) days notice of the date, time, and place. The postsecondary credit bearing proprietary educational institution is entitled to be represented by counsel and to offer oral and documentary evidence relevant to the issue.
    (c) Not more than fifteen (15) days after a hearing, the board for proprietary education shall make written findings of fact, a written decision, and a written order based solely on the evidence submitted at the hearing, either granting or denying accreditation authorization to the postsecondary credit bearing proprietary educational institution.

SOURCE: IC 21-18.5-6-15; (13)HB1314.1.21. -->     SECTION 21. IC 21-18.5-6-15, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. A postsecondary credit bearing

proprietary educational institution's accreditation authorization shall be suspended at any time if the accredited authorized postsecondary credit bearing proprietary educational institution denies enrollment to a student or makes a distinction or classification of students on the basis of race, color, or creed.

SOURCE: IC 21-18.5-6-17; (13)HB1314.1.22. -->     SECTION 22. IC 21-18.5-6-17, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 17. (a) A person representing a postsecondary credit bearing proprietary educational institution doing business in Indiana by offering courses may not sell a course or solicit students for the institution unless the person first secures an agent's permit from the board for proprietary education. If the agent represents more than one (1) postsecondary credit bearing proprietary educational institution, a separate agent's permit must be obtained for each institution that the agent represents.
    (b) Upon approval of an agent's permit, the board for proprietary education shall issue a pocket card to the person that includes:
        (1) the person's name and address;
        (2) the name and address of the postsecondary credit bearing proprietary educational institution that the person represents; and
        (3) a statement certifying that the person whose name appears on the card is an authorized agent of the postsecondary credit bearing proprietary educational institution.
    (c) The application must be accompanied by a fee of at least ten dollars ($10).
    (d) An agent's permit is valid for one (1) year from the date of its issue. An application for renewal must be accompanied by a fee of at least ten dollars ($10).
    (e) A postsecondary credit bearing proprietary educational institution is liable for the actions of the institution's agents.

SOURCE: IC 21-18.5-6-18; (13)HB1314.1.23. -->     SECTION 23. IC 21-18.5-6-18 IS REPEALED [EFFECTIVE UPON PASSAGE]. Sec. 18. (a) An application for an agent's permit must be granted or denied by the board for proprietary education not more than fifteen (15) working days after the receipt of the application. If the board for proprietary education has not completed a determination with respect to the issuance of a permit under this section within the fifteen (15) working day period, the board for proprietary education shall issue a temporary permit to the applicant. The temporary permit is sufficient to meet the requirements of this chapter until a determination is made on the application.
    (b) A permit issued under this chapter may, upon ten (10) days notice and after a hearing, be revoked by the board for proprietary

education:
        (1) if the holder of the permit solicits or enrolls students through fraud, deception, or misrepresentation; or
        (2) upon a finding that the permit holder is not of good moral character.

SOURCE: IC 21-18.5-6-21; (13)HB1314.1.24. -->     SECTION 24. IC 21-18.5-6-21, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 21. An obligation, negotiable or nonnegotiable, providing for payment for a course or courses of instruction is void if the postsecondary credit bearing proprietary educational institution is not accredited authorized to operate in Indiana.

SOURCE: IC 21-18.5-6-22; (13)HB1314.1.25. -->     SECTION 25. IC 21-18.5-6-22, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 22. The issuance of an agent's permit or any accreditation authorization may not be considered to constitute approval endorsement of a course, a person, or an institution. A representation to the contrary is a misrepresentation.

SOURCE: IC 21-18.5-6-22.5; (13)HB1314.1.26. -->     SECTION 26. IC 21-18.5-6-22.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 22.5. A person who knowingly and intentionally violates section 16 or 22 of this chapter commits a deceptive act that is actionable by the attorney general under IC 24-5-0.5 and is subject to the penalties and remedies available to the attorney general under IC 24-5-0.5.

SOURCE: IC 21-18.5-6-24; (13)HB1314.1.27. -->     SECTION 27. IC 21-18.5-6-24, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 24. An action of the board for proprietary education concerning the issuance, denial, or revocation of a permit or accreditation an authorization under this chapter is subject to review under IC 4-21.5.

SOURCE: IC 21-18.5-6-26; (13)HB1314.1.28. -->     SECTION 28. IC 21-18.5-6-26, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 26. (a) As used in this section, "fund" means the postsecondary credit bearing proprietary educational institution accreditation authorization fund established by subsection (b).
    (b) The postsecondary credit bearing proprietary educational institution accreditation authorization fund is established.
    (c) The fund shall be administered by the commission (as defined in IC 21-18.5-2-7.).
    (d) Money in the fund at the end of a state fiscal year does not revert to the general fund.

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    (e) All fees collected by the board for proprietary education under this chapter shall be deposited in the fund.
    (f) Money in the fund shall be used by the board for postsecondary proprietary education to administer this chapter.

SOURCE: IC 22-4.1-21-10; (13)HB1314.1.29. -->     SECTION 29. IC 22-4.1-21-10, AS ADDED BY P.L.107-2012, SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) The office for career and technical schools is established to carry out the responsibilities of the council under this chapter.
    (b) The council may employ and fix compensation for necessary administrative staff with the approval of the department.
    (c) The council department may adopt reasonable rules under IC 4-22-2 to implement this chapter.
    (d) The council may adopt and use a seal, the description of which shall be filed with the office of the secretary of state, and which may be used for the authentication of the acts of the council.

SOURCE: IC 22-4.1-21-16; (13)HB1314.1.30. -->     SECTION 30. IC 22-4.1-21-16, AS ADDED BY P.L.107-2012, SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 16. (a) Subject to subsections (b), (d), and (e), the council shall determine the penal sum of each surety bond required under section 15 of this chapter based upon the following guidelines:
        (1) A postsecondary proprietary educational institution that has no annual gross tuition charges assessed for the previous year shall secure a surety bond in the amount of twenty-five thousand dollars ($25,000).
        (2) If at any time the postsecondary proprietary educational institution's projected annual gross tuition charges are more than two hundred fifty thousand dollars ($250,000), the institution shall secure a surety bond in the amount of fifty thousand dollars ($50,000).
    (b) After June 30, 2006, and except as provided in:
        (1) section 19 of this chapter; and
        (2) subsection (e);
and upon the fund achieving at least an initial one million five hundred thousand dollar ($1,000,000) ($500,000) balance, a postsecondary proprietary educational institution that contributes to the fund when the initial quarterly contribution is required under this chapter after the fund's establishment is not required to make contributions to the fund or submit a surety bond.
    (c) The council shall determine the number of quarterly contributions required for the fund to initially accumulate one million five hundred thousand dollars ($1,000,000). ($500,000).

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    (d) Except as provided in section 19 of this chapter and subsection (e), a postsecondary proprietary educational institution that begins making contributions to the fund after the initial quarterly contribution as required under this chapter is required to make contributions to the fund for the same number of quarters as determined by the council under subsection (c).
    (e) If, after the fund acquires one million five hundred thousand dollars ($1,000,000), ($500,000), the balance in the fund becomes less than five two hundred fifty thousand dollars ($500,000), ($250,000), all postsecondary proprietary educational institutions not required to make contributions to the fund as described in subsection (b) or (d) shall make contributions to the fund for the number of quarters necessary for the fund to accumulate one million five hundred thousand dollars ($1,000,000). ($500,000).

SOURCE: IC 24-5-0.5-3; (13)HB1314.1.31. -->     SECTION 31. IC 24-5-0.5-3, AS AMENDED BY P.L.226-2011, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) The following acts, and the following representations as to the subject matter of a consumer transaction, made orally, in writing, or by electronic communication, by a supplier, are deceptive acts:
        (1) That such subject of a consumer transaction has sponsorship, approval, performance, characteristics, accessories, uses, or benefits it does not have which the supplier knows or should reasonably know it does not have.
        (2) That such subject of a consumer transaction is of a particular standard, quality, grade, style, or model, if it is not and if the supplier knows or should reasonably know that it is not.
        (3) That such subject of a consumer transaction is new or unused, if it is not and if the supplier knows or should reasonably know that it is not.
        (4) That such subject of a consumer transaction will be supplied to the public in greater quantity than the supplier intends or reasonably expects.
        (5) That replacement or repair constituting the subject of a consumer transaction is needed, if it is not and if the supplier knows or should reasonably know that it is not.
        (6) That a specific price advantage exists as to such subject of a consumer transaction, if it does not and if the supplier knows or should reasonably know that it does not.
        (7) That the supplier has a sponsorship, approval, or affiliation in such consumer transaction the supplier does not have, and which the supplier knows or should reasonably know that the supplier

does not have.
        (8) That such consumer transaction involves or does not involve a warranty, a disclaimer of warranties, or other rights, remedies, or obligations, if the representation is false and if the supplier knows or should reasonably know that the representation is false.
        (9) That the consumer will receive a rebate, discount, or other benefit as an inducement for entering into a sale or lease in return for giving the supplier the names of prospective consumers or otherwise helping the supplier to enter into other consumer transactions, if earning the benefit, rebate, or discount is contingent upon the occurrence of an event subsequent to the time the consumer agrees to the purchase or lease.
        (10) That the supplier is able to deliver or complete the subject of the consumer transaction within a stated period of time, when the supplier knows or should reasonably know the supplier could not. If no time period has been stated by the supplier, there is a presumption that the supplier has represented that the supplier will deliver or complete the subject of the consumer transaction within a reasonable time, according to the course of dealing or the usage of the trade.
        (11) That the consumer will be able to purchase the subject of the consumer transaction as advertised by the supplier, if the supplier does not intend to sell it.
        (12) That the replacement or repair constituting the subject of a consumer transaction can be made by the supplier for the estimate the supplier gives a customer for the replacement or repair, if the specified work is completed and:
            (A) the cost exceeds the estimate by an amount equal to or greater than ten percent (10%) of the estimate;
            (B) the supplier did not obtain written permission from the customer to authorize the supplier to complete the work even if the cost would exceed the amounts specified in clause (A);
            (C) the total cost for services and parts for a single transaction is more than seven hundred fifty dollars ($750); and
            (D) the supplier knew or reasonably should have known that the cost would exceed the estimate in the amounts specified in clause (A).
        (13) That the replacement or repair constituting the subject of a consumer transaction is needed, and that the supplier disposes of the part repaired or replaced earlier than seventy-two (72) hours after both:
            (A) the customer has been notified that the work has been

completed; and
            (B) the part repaired or replaced has been made available for examination upon the request of the customer.
        (14) Engaging in the replacement or repair of the subject of a consumer transaction if the consumer has not authorized the replacement or repair, and if the supplier knows or should reasonably know that it is not authorized.
        (15) The act of misrepresenting the geographic location of the supplier by listing a fictitious business name or an assumed business name (as described in IC 23-15-1) in a local telephone directory if:
            (A) the name misrepresents the supplier's geographic location;
            (B) the listing fails to identify the locality and state of the supplier's business;
            (C) calls to the local telephone number are routinely forwarded or otherwise transferred to a supplier's business location that is outside the calling area covered by the local telephone directory; and
            (D) the supplier's business location is located in a county that is not contiguous to a county in the calling area covered by the local telephone directory.
        (16) The act of listing a fictitious business name or assumed business name (as described in IC 23-15-1) in a directory assistance database if:
            (A) the name misrepresents the supplier's geographic location;
            (B) calls to the local telephone number are routinely forwarded or otherwise transferred to a supplier's business location that is outside the local calling area; and
            (C) the supplier's business location is located in a county that is not contiguous to a county in the local calling area.
        (17) The violation by a supplier of IC 24-3-4 concerning cigarettes for import or export.
        (18) The act of a supplier in knowingly selling or reselling a product to a consumer if the product has been recalled, whether by the order of a court or a regulatory body, or voluntarily by the manufacturer, distributor, or retailer, unless the product has been repaired or modified to correct the defect that was the subject of the recall.
        (19) The violation by a supplier of 47 U.S.C. 227, including any rules or regulations issued under 47 U.S.C. 227.
        (20) The violation by a supplier of the federal Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), including any

rules or regulations issued under the federal Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.).
        (21) A violation of IC 24-5-7 (concerning health spa services), as set forth in IC 24-5-7-17.
        (22) A violation of IC 24-5-8 (concerning business opportunity transactions), as set forth in IC 24-5-8-20.
        (23) A violation of IC 24-5-10 (concerning home consumer transactions), as set forth in IC 24-5-10-18.
        (24) A violation of IC 24-5-11 (concerning home improvement contracts), as set forth in IC 24-5-11-14.
        (25) A violation of IC 24-5-12 (concerning telephone solicitations), as set forth in IC 24-5-12-23.
        (26) A violation of IC 24-5-13.5 (concerning buyback motor vehicles), as set forth in IC 24-5-13.5-14.
        (27) A violation of IC 24-5-14 (concerning automatic dialing-announcing devices), as set forth in IC 24-5-14-13.
        (28) A violation of IC 24-5-15 (concerning credit services organizations), as set forth in IC 24-5-15-11.
        (29) A violation of IC 24-5-16 (concerning unlawful motor vehicle subleasing), as set forth in IC 24-5-16-18.
        (30) A violation of IC 24-5-17 (concerning environmental marketing claims), as set forth in IC 24-5-17-14.
        (31) A violation of IC 24-5-19 (concerning deceptive commercial solicitation), as set forth in IC 24-5-19-11.
        (32) A violation of IC 24-5-21 (concerning prescription drug discount cards), as set forth in IC 24-5-21-7.
        (33) A violation of IC 24-5-23.5-7 (concerning real estate appraisals), as set forth in IC 24-5-23.5-9.
        (34) A violation of IC 24-5-26 (concerning identity theft), as set forth in IC 24-5-26-3.
        (35) A violation of IC 24-5.5 (concerning mortgage rescue fraud), as set forth in IC 24-5.5-6-1.
        (36) A violation of IC 24-8 (concerning promotional gifts and contests), as set forth in IC 24-8-6-3.
         (37) A violation of IC 21-18.5-6 (concerning representations made by a postsecondary credit bearing proprietary educational institution), as set forth in IC 21-18.5-6-22.5.
    (b) Any representations on or within a product or its packaging or in advertising or promotional materials which would constitute a deceptive act shall be the deceptive act both of the supplier who places such representation thereon or therein, or who authored such materials, and such other suppliers who shall state orally or in writing that such

representation is true if such other supplier shall know or have reason to know that such representation was false.
    (c) If a supplier shows by a preponderance of the evidence that an act resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid the error, such act shall not be deceptive within the meaning of this chapter.
    (d) It shall be a defense to any action brought under this chapter that the representation constituting an alleged deceptive act was one made in good faith by the supplier without knowledge of its falsity and in reliance upon the oral or written representations of the manufacturer, the person from whom the supplier acquired the product, any testing organization, or any other person provided that the source thereof is disclosed to the consumer.
    (e) For purposes of subsection (a)(12), a supplier that provides estimates before performing repair or replacement work for a customer shall give the customer a written estimate itemizing as closely as possible the price for labor and parts necessary for the specific job before commencing the work.
    (f) For purposes of subsection (a)(15) and (a)(16), a telephone company or other provider of a telephone directory or directory assistance service or its officer or agent is immune from liability for publishing the listing of a fictitious business name or assumed business name of a supplier in its directory or directory assistance database unless the telephone company or other provider of a telephone directory or directory assistance service is the same person as the supplier who has committed the deceptive act.
    (g) For purposes of subsection (a)(18), it is an affirmative defense to any action brought under this chapter that the product has been altered by a person other than the defendant to render the product completely incapable of serving its original purpose.

SOURCE: ; (13)HB1314.1.32. -->     SECTION 32. An emergency is declared for this act.