DAR File No. 29144

Commerce, Consumer Protection

R152-34-5

Rules Relating to Institutions Exempt Under Section 13-34-105

NOTICE OF PROPOSED RULE

DAR File No.: 29144
Filed: 10/20/2006, 04:15
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of the proposed amendment is to clarify the exemption set out in Subsection 13-34-105(1)(f).

Summary of the rule or change:

The proposed amendment clarifies that the exemption set out in Subsection 13-34-105(1)(f) includes organizations, associations, societies, labor unions, and franchise systems which meet the following requirements: 1) the organization, association, society, labor union, or franchise system does not recruit students; 2) the organization, association, society, labor union, or franchise system provides courses of instruction only to students who are currently employed; 3) the cost of the course of instruction is paid for by the employer, not the student; and 4) enrollment in each course of instruction is limited to those who are bona fide employees of the employer.

State statutory or constitutional authorization for this rule:

Subsection 13-2-5(1)

Anticipated cost or savings to:

the state budget:

There are no anticipated costs or savings to the state budget because the proposed amendment merely clarifies which institutions are exempt under Subsection 13-34-105(1)(f).

local governments:

The proposed amendment does not impact local governments; therefore, no costs or savings are anticipated.

other persons:

There are no anticipated costs or savings to other persons because the proposed amendment merely clarifies which institutions are exempt under Subsection 13-34-105(1)(f).

Compliance costs for affected persons:

There are no compliance costs because the proposed amendment merely clarifies which institutions are exempt under Subsection 13-34-105(1)(f).

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule filing clarifies the standards regarding exempt organizations. No fiscal impact to businesses is anticipated as a result of this filing. Francine A. Giani, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Commerce
Consumer Protection
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Thomas Copeland at the above address, by phone at 801-530-6601, by FAX at 801-530-6001, or by Internet E-mail at tcopeland@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/15/2006

This rule may become effective on:

12/22/2006

Authorized by:

Kevin V Olsen, Director

R152. Commerce, Consumer Protection.

R152-34. Postsecondary Proprietary School Act Rules.

R152-34-5. Rules Relating to Institutions Exempt Under Section 13-34-105.

(1) Institutions that provide nonprofessional review courses, such as law enforcement and civil service, are not exempt, unless they are considered as workshops or seminars within the meaning of Section 13-34-105(h).

(2) In order for the church or religious denomination to be "bona fide" such that the institution is exempt from registration, the institution may not be the church or religious denomination's primary purpose, function or asset.

(3) Any institution which claims an accreditation exemption must furnish acceptable documentation to the division upon request.

(4) To be exempt under Section 13-34-105(f)[,]:

(a) the training or instruction shall not be the primary activity of the organization, association, society, labor union, or franchise system[.] or;

(b) the organization, association, society, labor union, or franchise system shall meet the following requirements:

(i) the organization, association, society, labor union, or franchise system does not recruit students;

(ii) the organization, association, society, labor union, or franchise system provides courses of instruction only to students who are currently employed;

(iii) the cost of the course of instruction is paid for by the employer of the student, not the student; and

(iv) enrollment in each individual course of instruction is limited to those who are bona fide employees of the employer.

(5) The division shall determine an institution's status in accordance with the categories contained in this section.

(6) An exempt institution shall notify the division within thirty (30) days of a material change in circumstances which may affect its exempt status as provided in this section and shall follow the procedure outlined in Section 13-34-107.

(7) An exempted institution which voluntarily applies for a certificate by filing a registration statement shall comply with all rules as though such institution were nonexempt.

(8) To apply for a certificate of registration, an accredited institution shall submit a completed registration statement application and a copy of such portions of its current accreditation self-evaluation report as are specified by the division.

 

KEY: education, postsecondary proprietary school, registration

Date of Enactment or Last Substantive Amendment: 2006

Authorizing, and Implemented or Interpreted Law: 13-2-5(1)