File No. 36905
This rule was published in the October 15, 2012, issue (Vol. 2012, No. 20) of the Utah State Bulletin.
Commerce, Consumer Protection
Postsecondary Proprietary School Act Rules
Notice of Proposed Rule
DAR File No.: 36905
Filed: 10/01/2012 05:48:19 PM
Purpose of the rule or reason for the change:
The Utah Postsecondary Proprietary School Act was amended the prior legislative session (S.B. 210), thus requiring amendments to the administrative rules.
Summary of the rule or change:
The licensing requirements and standards for establishing an exemption from the licensing requirements were amended and clarified.
State statutory or constitutional authorization for this rule:
- Section 13-2-5
Anticipated cost or savings to:
the state budget:
The state budget will be impacted by the adjustments to the manner in which registration fees are calculated. The nature of the impact cannot be fully known until the fee calculation amendments are in force and applied by postsecondary schools in future registrations.
Local government will not be affected by the changes in licensing and exemption requirement amendments.
Small businesses that operate postsecondary proprietary schools will be required to meet the new licensing requirements for registration or the standards for establishing an exemption from the licensing requirements. The intent and design of these amendments should clarify the process for these businesses and allow them to register or establish an exemption in a simpler, more streamlined process. The fee calculations may raise or lower the registration fees for these businesses, depending on the amount of tuition they collect.
persons other than small businesses, businesses, or local governmental entities:
The interests of students and other consumers will be better protected by the requirements and prohibitions set forth in the amendments.
Compliance costs for affected persons:
The fee calculations may raise or lower the registration fees for postsecondary proprietary schools, depending on the amount of tuition they collect. The clarifications to the registration process and standards for establishing an exemption from registration should simplify the registration process for postsecondary proprietary schools.
Comments by the department head on the fiscal impact the rule may have on businesses:
As stated in the rule analysis, the proposed amendments clarify the process by which a school may establish that it is exempt from the licensing requirement. These amendments derive from statutory changes made in the 2012 General Session, S.B. 210. It is not anticipated that this filing will have any fiscal impact to businesses beyond that considered by the Legislature in passing the bill.
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
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316
Direct questions regarding this rule to:
- Angela Hendricks at the above address, by phone at 801-530-6035, by FAX at 801-538-6001, or by Internet E-mail at firstname.lastname@example.org
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:
This rule may become effective on:
Traci Gundersen, Director
R152. Commerce, Consumer Protection.
R152-34. Postsecondary Proprietary School Act Rules.
These rules are promulgated under the authority of Section 13-2-5(1) to administer and enforce the Postsecondary Proprietary School Act. These rules provide standards by which institutions and their agents who are subject to the Postsecondary Proprietary School Act are required to operate consistent with public policy.
The statutory references that are made in these rules are to Title 13, Chapter 34, Utah Code Annotated 1953.
R152-34-3. Definitions in Addition to Those Found in Section 13-34-103.
(1) "Branch" and "extension" mean a freestanding location that is apart from the main campus, where resident instruction is provided on a regular, continuing basis.
(2) "Correspondence institution"
means an institution that is conducted predominantly through the
means of home study[
(3) "Course" means a unit subject within a program of education that must be successfully mastered before an educational credential can be awarded.
(4) "Division" means the Division of Consumer Protection.
(5) "Probation" means a negative
action of the [
division] that specifies a stated period for an institution
to correct stipulated deficiencies[ ;] but does not imply any impairment of operational
(6) "Program of education" consists of a series of courses that lead to an educational credential when completed.
(7) "Resident institution" means an institution where the courses and programs offered are predominantly conducted in a classroom or a class laboratory, with an instructor.
(8) "Revocation" means a
negative action of the [
division] that orders an institution to surrender its
certificate and cease operations, including advertising, enrolling
students and teaching classes, [ for whatever reason].
(9) "Suspension" means a
negative action of the [
division] that impairs an institution's operational
authority for a stated period of time during which the deficiencies
must be corrected or the certificate may be revoked.
R152-34-4. Rules Relating to the Responsibilities of Proprietary Schools as Outlined in Section 13-34-104.
(1) In order to be able to award a degree or certificate, a proprietary school must meet the following general criteria:
Its program] must meet the following generally accepted minimum
number of semester/quarter credit hours required to complete a
standard college degree: associate, 60/90; bachelor's, 120/180;
master's, 150/225; and doctorate, approximately 200/300.
(b) The areas of study, the methods of instruction, and the level of effort required of the student for a degree or certificate must be commensurate with reasonable standards established by recognized accrediting agencies and associations.
(c) In order for the proprietary school to award a degree or certificate, the faculty must be academically prepared in the area of emphasis at the appropriate level, or as to vocational-technical programs, must have equivalent job expertise based on reasonable standards established by recognized accrediting agencies and associations. This notwithstanding, credit may be awarded toward degree completion based on
(1)] transfer of credit from other accredited and recognized
(2)] recognized proficiency exams (CLEP, AP, etc.), and
(3)] in-service competencies as evaluated and recommended
by recognized national associations such as the American Council on
Education. Such credit for personal experiences shall be limited to
not more than one year's worth of work (30 semester credit
hours/45 quarter credit hours).
(d) In order to offer a program of study, either degree or non-degree, it must be of such a nature and quality as to make reasonable the student's expectation of some advantage in enhancing or pursuing employment, as opposed to a general education or non-vocational program which is excluded from registration under 13-34-105(g).
(i) If the purpose of an offered program of study is to prepare students for entry into fields of employment which require licensure by any licensing agency or to prepare students for entry into fields of employment for which it would be impracticable to have reasonable expectations of employment without accreditation and/or certification by any trade and/or industry association and/or accrediting and/or certifying body, the entity offering, or desiring to offer, the program of study must provide the Division:
(A) information regarding the type of license, accreditation and/or certification that students completing the program of study must obtain in order to have a reasonable expectation of employment;
(B) the name and contact information of the agency, trade and/or industry association and/or accrediting and/or certifying body;
(C) evidence that the curriculum for the offered program of study has been reviewed by the appropriate entity from subsection (B) above; and,
(D) evidence that the instructors teaching students enrolled in the program of study are licensed by the appropriate agency from subsection (B) above, or have earned the accreditation and/or certification from the appropriate entity from subsection (B) above to teach and/or practice in the field for which the students are being prepared.
(2) The faculty member shall assign work, set standards of accomplishment, measure the student's ability to perform the assigned tasks, provide information back to the student as to his or her strengths and deficiencies, and as appropriate, provide counseling, advice, and further assignments to enhance the student's learning experience. This requirement does not preclude the use of computer assisted instruction or programmed learning techniques when appropriately supervised by a qualified faculty member.
(3) As appropriate to the program or
course of study to be pursued, the proprietary school shall
evaluate the prospective student's experience, background, and
ability to succeed in that program through review of educational
records and transcripts, tests or examinations, interviews, and
counseling. This evaluation shall include a finding that the
prospective student (1) is beyond the age of compulsory high school
attendance, as prescribed by [
Utah law]; and (2) has
received either a high school diploma or a General Education
Development certificate, or has satisfactorily completed a national
or industry developed competency-based test or an entrance
examination that establishes the individual's ability to
benefit. Based on this evaluation, before admitting the prospective
student to the program, the institution must have a reasonable
expectation that the student can successfully complete the program,
and that if he or she does so complete, that there is a reasonable
expectation that he or she will be qualified and be able to find
appropriate employment based on the skills acquired through the
(4) Each proprietary school shall prepare for the use of prospective students and other interested persons a catalog or general information bulletin that contains the following information:
(a) The legal name, address, and telephone number of the institution, also any branches and/or extension locations;
(b) The date of issue;
(c) The names, titles, and qualifications of administrators and faculty;
(d) The calendar, including scheduled state and federal holidays, recess periods, and dates for enrollment, registration, start of classes, withdrawal and completion;
(e) The admission and enrollment prerequisites, both institutional and programmatic, as provided in R152-34-8(1);
(f) The policies regarding student conduct, discipline, and probation for deficiencies in academics and behavior;
(g) The policies regarding attendance and absence, and any provision for make-up of assignments;
(h) The policies regarding dismissal and/or interruption of training and of reentry;
(i) The policies explaining or describing the records that are to be maintained by the institution, including transcripts;
(j) The policies explaining any credit granted for previous education and experience;
(k) The policies explaining the grading system, including standards of progress required;
(l) The policies explaining the provision to students of interim grade or performance reports;
(m) The graduation requirements and the credential awarded upon satisfactory completion of a program;
(n) The schedule of tuition, any other fees, books, supplies and tools;
(o) The policies regarding refunds of any unused charges collected as provided in R152-34-8(3);
(p) The student assistance available,
including scholarships and loans[
(q) The name, description, and length of each program offered, including a subject outline with course titles and approximate number of credit or clock hours devoted to each course;
(r) The placement services available and any variation by program;
(s) The facilities and equipment available;
(t) An explanation of whether and to what
extent that the credit hours earned by the student are transferable
to other institutions;[
Such other information as the division may reasonably
require from time to time.]
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
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.
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
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
R152-34-6. Rules Relating to the Registration Statement Required under Section 13-34- 106.
(1) The registration statement application shall provide the following information and statements made under oath:
(a) The institution's name, address, and telephone number;
(b) The names of all persons involved in
the operation of the institution and a stipulation that the resumes
are on file at the institution and available to the students[
(c) The name of the agent authorized to
respond to student[
s] inquiries if the registrant is a branch
institution whose parent is located outside of the state of
(d) A statement that its articles of incorporation have been registered and accepted by the Utah Department of Commerce, Division of Corporations and Commercial Code and that it has a local business license, if required;
(e) A statement that its facilities, equipment, and materials meet minimum standards for the training and assistance necessary to prepare students for employment;
(f) A statement that it maintains accurate attendance records, progress and grade reports, and information on tuition and fee payments appropriately accessible to students;
(g) A statement that its maintenance and operation is in compliance with all ordinances, laws, and codes relative to the safety and health of all persons upon the premises;
(h) A statement that there is sufficient student interest in Utah for the courses that it provides and that there is reasonable employment potential in those areas of study in which credentials will be awarded;
(i) If the registration statement is filed
pursuant to Section 13-34-107(3)(b), a detailed description of any
material modifications to be made in the institution's
operations, identification of those programs that are offered in
whole or in part in Utah and a statement of whether the student can
complete his or her program without having to take residence at the
(j) A statement that it maintains adequate
insurance continuously in force to protect its assets[
(k) A disclosure as required by
(l) If the registrant is a correspondence institution, whether located within or without the state of Utah, a demonstration that the institution's educational objectives can be achieved through home study; that its programs, instructional material, and methods are sufficiently comprehensive, accurate, and up-to-date to meet the announced institutional course and program objectives; that it provides adequate interaction between the student and instructor, through the submission and correction of lessons, assignments, examinations, and such other methods as are recognized as characteristic of this particular learning technique; and that any degrees and certificates earned through correspondence study meet the requirements and criteria of R152-34-4(1).
(2) The institution shall provide with its registration statement application copies of the following documents:
(a) A sample of the credential(s) awarded upon completion of a program;
(b) A sample of current advertising including radio, television, newspaper and magazine advertisements, and listings in telephone directories;
(c) A copy of the student enrollment agreement; and
A financial statement, as described in R152-34-7(8) and
(3) If any information contained in the
registration statement application becomes incorrect or incomplete,
the registrant shall, within thirty (30) days after the information
becomes incorrect or incomplete, correct the application or file
the complete information as required by the [
(4) An institution ceasing its operations shall immediately
inform the division and provide the division with student records
in accordance with Section 13-34-109.
R152-34-7. Rules Relating to the Operation of Proprietary Schools under Section 13-34- 107.
An authorized officer of the institution to be registered
under this chapter shall sign a disclosure as to whether the
institution or an owner, officer, director, administrator, faculty
member, staff member, or agent of the institution has violated
laws, federal regulations or state rules as determined in a
criminal, civil or administrative proceeding.]
The Division shall refuse to register an institution when
the Division: (a) determines that the institution or an owner, officer,
director, administrator, faculty member, staff member, or agent
of the institution has violated laws, federal regulations or
state rules, as determined in a criminal, civil or administrative
(b) determines the violation(s) to be relevant to the
appropriate operation of the school; and
(c) has a reasonable doubt that the institution will
function in accordance with these laws and rules or provide
students with an appropriate learning experience].
A change in the ownership of an institution, as defined in
Section 13-34-103(8), occurs when there is a merger or change in
the controlling interest of the entity or if there is a transfer of
more than 50 percent of the its assets within a three-year period.
When this occurs the following information is submitted to the
Division for its review: (a) a copy of any new articles of incorporation;
(b) a current financial statement, as outlined in
subsection (8) below;
(c) a listing of all institutional personnel that have
changed as a result of the ownership transaction, together with
complete resumes and qualifications;
(d) a detailed description of any material modifications
to be made in the operation of the institution; and
(e) payment of the appropriate fee.
(i) The Division collects the following fees in
accordance with U.C.A. Section 13-34-107(5):
(A) Initial registration application fees will be based
on the expected gross income of the registered program during the
first year of operation. The initial application fee shall be
computed as one-half of one percent of the gross tuition income
of the registered program(s) expected during the first year, but
not less than $100 or more than $2,000. The institution shall
provide documentation to substantiate the amount of the fee, in a
form specified by the Division.
(B) The Division also collects annual registration fees
computed as one-half of one percent of the gross tuition income
of the registered program(s) during the previous year, but not
less than $100 or more than $2,000. The institution shall provide
documentation to substantiate the amount of the fee, in a form
specified by the Division. The annual registration fee is due on
the anniversary date of the institution's certificate of
(C) All registration fees collected by the Division will be
used to enhance the administration of the Act and Rules].
The institution shall submit to the Division its renewal
registration statement application, along with the appropriate fee,
no later than thirty (30) days prior to the expiration date of the
current certificate of registration]
In addition to the annual registration fee, an institution
failing to file a renewal registration application by the due date
or filing an incomplete registration application or renewal shall
pay an additional fee of $25 for each month or part of a month
after the date on which the registration statement application or
renewal were due to be filed].
Within thirty (30) days after receipt of an initial or
renewal registration statement application and its attachments, the
Division shall do one of the following]:
issue a certificate of registration];
request further information and, if needed, conduct a site
visit to the institution as detailed in R152-34-10(1); or]
refuse to accept the registration statement based on
Sections 13-34-107 and 113].
Although a certificate of registration is valid for two (2)
years, the Division may periodically request updates of financial
statements, surety requirements and the following statistical
The number of students enrolled from September 1 through
The number of students who completed and received a
credential; (c) The number of students who terminated or
(d) The number of administrators, faculty, supporting
staff, and agents; and (e) The new catalog, information bulletin, or
] (8) [
The institution shall have, in addition to other criteria
contained in this rule, sufficient financial resources to fulfill
its commitments to students and staff members, and to meet its
other obligations as evidenced by the following financial
A current financial statement prepared in accordance with
generally accepted accounting principles including a balance sheet,
an income statement, a statement of stockholders' equity, and a
statement of cash flows for the most recent fiscal year with all
applicable footnotes; and either: (i) A certified fiscal audit of the institution's
financial statement performed by a certified or licensed public
(ii) A review of the institution's financial statement
performed by a certified or licensed public accountant.]
If the institution has been determined to be bond exempt
under Subsection (14) and has total gross tuition income that does
not exceed $50,000, the institution may, in lieu of the financial
statements set forth in Subsection (8)(a), provide to the
Division; (i) a copy of the institution's most recently filed
federal tax return; or
(ii) if the institution is not required to file a return,
then a copy of the owner's most recently filed federal tax
(9)(a) A satisfactory surety in the form of a bond, certificate of deposit, or irrevocable letter of credit shall be provided by the institution before a certificate of registration will be issued by the Division.
(b) The obligation of the surety will be that the institution, its officers, agents, and employees will:
(i) faithfully perform the terms and conditions of contracts for tuition and other instructional fees entered into between the institution and persons enrolling as students; and
(ii) conform to the provisions of the Utah Postsecondary Proprietary School Act and Rules.
(c) The bond, certificate of deposit, or letter of credit shall be in a form approved by the Division and issued by a company authorized to do such business in Utah.
(d)(i) The bond, certificate of deposit, or letter of credit shall be payable to the Division to be used for creating teach-out opportunities or for refunding tuition, book fees, supply fees, equipment fees, and other instructional fees paid by a student or potential student, enrollee, or his or her parent or guardian.
(ii) In each instance the Division may determine:
(A) which of the uses listed in Subsection (9)(d)(i) are appropriate; and
(B) if the Division creates teach-out opportunities, the appropriate institution to provide the instruction.
(e) An institution that closes or otherwise discontinues operations shall maintain the institution's surety until:
(i) at least one year has passed since the institution has notified the Division in writing that the institution has closed or discontinued operation; and
(ii) the institution has satisfied the requirements of Section R152-34-9.
(10)(a) The surety company may not be relieved of liability on the surety unless it gives the institution and the Division ninety calendar days notice by certified mail of the company's intent to cancel the surety.
(b) The cancellation or discontinuance of surety coverage after such notice does not discharge or otherwise affect any claim filed by a student, enrollee or his/her parent or guardian for damage resulting from any act of the institution alleged to have occurred while the surety was in effect, or for an institution's ceasing operations during the term for which tuition had been paid while the surety was in force.
(c) If at any time the company that issued the surety cancels or discontinues the coverage, the institution's registration is revoked as a matter of law on the effective date of the cancellation or discontinuance of surety coverage unless a replacement surety is obtained and provided to the Division.
(11)(a) Before an original registration is issued, and except as otherwise provided in this rule, the institution shall secure and submit to the Division a surety in the form of a bond, certificate of deposit or letter of credit in an amount of one hundred and eighty-seven thousand, five- hundred dollars ($187,500) for schools expecting to enroll more than 100 separate individual students (non-duplicated enrollments) during the first year of operation, one hundred and twenty-five thousand dollars ($125,000) for schools expecting to enroll between 50 and 99 separate individual students during the first year, and sixty-two thousand, five- hundred dollars ($62,500) for institutions expecting to enroll less than 50 separate individual students during the first year.
(b) Institutions that submit evidence acceptable to the Division that the school's gross tuition income from any source during the first year will be less than twenty-five thousand dollars ($25,000) may provide a surety of twelve thousand, five hundred dollars ($12,500) for the first year of operation.
(12)(a) Except as otherwise provided in this rule, the minimum amount of the required surety to be submitted annually after the first year of operation will be based on twenty-five percent of the annual gross tuition income from registered program(s) for the previous year (rounded to the nearest $1,000), with a minimum surety amount of twelve thousand, five hundred dollars ($12,500) and a maximum surety amount of three hundred thousand dollars ($300,000).
(b) The surety shall be renewed each year by the anniversary date of the school's certificate of registration, and also included as a part of each two-year application for registration renewal.
(c) No additional programs may be offered without appropriate adjustment to the surety amount.
(13)(a) The institution shall provide a statement by a school official regarding the calculation of gross tuition income and written evidence confirming that the amount of the surety meets the requirements of this rule.
(b) The Division may require that such statement be verified by an independent certified public accountant if the Division determines that the written evidence confirming the amount of the surety is questionable.
(14) An institution with a total cost per program of five hundred dollars or less or a length of each such program of less than one month shall not be required to have a surety.
(15) The Division will not register a program at a proprietary school if it determines that the educational credential associated with the program may be interpreted by employers and the public to represent the undertaking or completion of educational achievement that has not been undertaken and earned.
(16) Acceptance of registration statements and the issuing of certificates of registration to operate a school signifies that the legal requirements prescribed by statute and regulations have been satisfied. It does not mean that the Division supervises, recommends, nor accredits institutions whose statements are on file and who have been issued certificates of registration to operate.
R152-34-8. Rules Relating to Fair and Ethical Practices Set Forth in Section 13-34-108.
(1) An institution, as part of its assessment for enrollment, shall consider the applicant's basic skills, aptitude, and physical qualifications, as these relate to the choice of program and to anticipated employment and shall not admit a student to a program unless there is a reasonable expectation that the student will succeed, as prescribed by R152-34-4(3).
(2) Financial dealings with students shall reflect standards of ethical practice.
(3) The institution shall adopt a fair and equitable refund policy including:
(a) A three-business-day cooling-off period, commencing with the day an enrollment agreement with the applicant is signed or an initial deposit or payment toward tuition and fees of the institution is made, until midnight of the third business day following such date or from the date that the student first visits the institution, whichever is later, shall be applicable and during this time the contract may be rescinded by the student and all money paid refunded.
(b) A student enrolled in a correspondence institution may withdraw from enrollment following the cooling off period, prior to submission by the student of any lesson materials or prior to receipt of course materials, whichever comes first, and effective upon deposit of a written statement of withdrawal for delivery by mail or other means, and the institution shall be entitled to retain no more than $200 in tuition or fees as registration charges or an alternative amount that the institution can demonstrate to have been expended in preparation for that particular student's enrollment.
(c) A clear and unambiguous written statement of the institution's refund policy for students who desire a refund after the three-business-day cooling-off period or after a student enrolled in a correspondence institution has submitted lesson materials or been in receipt of course materials.
(d) There shall be a written enrollment agreement, to be signed by the student and a representative of the institution, that clearly describes the cooling-off period, nonrefundable registration fee, and refund policy and schedule, including the rights of both the student and the institution, with copies provided to each.
(e) There shall be complete written information on repayment obligations to all applicants for financial assistance before an applicant student assumes such responsibilities.
(f) A pay-as-you-learn payment schedule that limits a student's prospective contractual obligation(s),at any one time, to the institution for tuition and fees to four months of training, plus registration or start-up costs not to exceed $200 or an alternative amount that the institution can demonstrate to have spent in undertaking a student's instruction. This restriction applies regardless of whether a contractual obligation is paid to the institution by:
(i) the student directly; or
(ii) a lender or any other entity on behalf of the student.
(g) The payment of a refund within 30 calendar days of a request for a refund if the person requesting the refund is entitled to the refund:
(i) under any provision of:
(A) the Utah Postsecondary Proprietary School Act, Utah Code Title 13, Chapter 34;
(B) the Postsecondary Proprietary School Act Rules, R152-34; or
(C) a contract or other agreement between the institution and the person requesting the refund; or
(ii) because of the institution's failure to fulfill its obligations to the person requesting the refund.
(4) Following the satisfactory completion of his or her training and education, a student is provided with appropriate educational credentials that show the program in which he or she was enrolled, together with a transcript of courses completed and grades or other performance evaluations received.
(5) No institution shall use the designation of 'college' nor 'university' in its title nor in conjunction with its operation unless it actually confers a standard college degree as one of its credentials, unless the use of such designation had previously been approved by the Board of Regents prior to July 1, 2002.
(6) The name of the institution shall not contain any reference that could mislead potential students or the general public as to the type or nature of its educational services, affiliations or structure.
(7) Advertising standards consist of the following:
(a) The institution's chief administrative officer assumes all responsibility for the content of public statements made on behalf of the institution and shall instruct all personnel, including agents, as to this rule and other appropriate laws regarding the ethics of advertisement and recruitment;
(b) Advertising shall be clear, factual, supportable, and shall not include any false or misleading statements with respect to the institution, its personnel, its courses and programs, its services, nor the occupational opportunities for its graduates;
The institution] shall not advertise
in conjunction with any other business
or establishment, nor [ advertise] in "help wanted" [ n]or [ in] "employment opportunity" columns of
newspapers, magazines or similar [ publications] in such a way as to lead readers to believe that they
are applying for employment rather than education and training. [ It must disclose that it is primarily operated for
educational purposes, if this is not apparent from its legal
(d) An institution, its employees and agents, shall refrain from other forms of ambiguous or deceptive advertising, such as:
(i) claims as to endorsement by manufacturers or businesses or organizations until and unless written evidence supporting this fact is on file; and
(ii) representations that students completing a course or program may transfer either credits or credentials for acceptance by another institution, state agency, or business, unless written evidence supporting this fact is on file;
(e) An institution shall maintain a file of all promotional information and related materials for a period of three (3) years;
(f) The [
division] may require an institution to submit its
advertising prior to its use; and
(g) An institution cannot advertise that its organization or program is endorsed by the state of Utah other than to state that the school is 'Registered under the Utah Postsecondary Proprietary School Act'.
i]) An institution shall include the following registration
and disclaimer statements in its catalog, student information
bulletin, and enrollment agreements:
A]) REGISTERED UNDER THE UTAH POSTSECONDARY PROPRIETARY
SCHOOL ACT (Title 13, Chapter 34, Utah Code).
B]) Registration under the Utah Postsecondary Proprietary
School Act does not mean that the State of Utah supervises,
recommends, nor accredits the institution. It is the student's
responsibility to determine whether credits, degrees, or
certificates from the institution will transfer to other
institutions or meet employers' training requirements. This may
be done by calling the prospective school or employer.
C]) The institution is not accredited by a regional or
national accrediting agency recognized by the United States
Department of Education.
(8) Recruitment standards include the following:
(a) Recruiting efforts shall be conducted in a professional and ethical manner and free from 'high pressure' techniques; and
(b) An institution shall not use loans, scholarships, discounts, or other such enrollment inducements, where such result in unfair or discriminatory practices.
(9) An agent or sales representative may not be directly or indirectly be portrayed as 'counselor,' 'advisor,' or any other similar title to disguise his or her sales function.
(10) An agent or representative is responsible to have a clear understanding and knowledge of the programs and courses, tuition, enrollment requirements, enrollment agreement, support services, and the general operational procedures thereof.
(11) An institution shall indemnify any student from loss or other injury as a result of any fraud or other form of misrepresentation used by an agent in the recruitment process.
(12) An institution operating in Utah but domiciled outside the state shall designate a Utah resident as its registered agent for purposes of service of legal process.
(13) An institution shall provide a student with all of the student's school records, as described in R152-34-9(2), within five business days after a written or verbal request by a student for the student's school records. The institution may not charge a student more than the actual copying costs for the student's school records.
R152-34-9. Rules Relating to Discontinuance of Operations Pursuant to Section 13-34- 109.
(1) Institutional closure procedures consist of the
following: (a) The chief administrative officer of each institution
subject to the Postsecondary Proprietary Schools Act shall
prepare a written plan for access to and the preservation of
permanent records in the event the institution closes for
whatever reason; and
(b) In the event an institution closes with students
enrolled who have not completed their programs, a list of such,
including the amount of tuition paid and the proportion of their
program completed, shall be submitted to the division, with all
(2) School records consist of the following permanent
scholastic records for all students who are admitted, even though
withdrawn or terminated:
(a) appropriate entrance and admission acceptance
(b) attendance and performance information, including
transcripts which consist of no less than the program for which
he enrolled, each course attempted and the final grade
(c) graduation or termination dates of students;
(d) enrollment agreements, tuition payments, refunds, and
any other financial transactions.
(3) The division shall not release a surety required
under R152-34-7(11) and/or R152-34-7(12) until one year after the
date that the institution has complied with the requirements of
(1) and (2) above, or until such time as the institution provides
documentation acceptable to the division to show that the
institution has complied with (1) and (2) above and has satisfied
all possible claims for refunds that may be made against the
institution by students of the institution at the time the
institution discontinued operations and by persons who were
students of the institution within one year prior to the date
that the institution discontinued operations, whichever is
R152-34-10. Rules Relating to Suspension, Termination or Refusal to Register under Section 13-34-111.
(1) The [
division] may perform on-site evaluations to verify
information submitted by an institution or an agent, or to
investigate complaints filed with the Division.
(2) The [
division] may, in accordance with Title 63G, Chapter 4,
Administrative Procedures Act, issue an order to deny, suspend, or
revoke a registration, upon a finding that:
(a) the award of credentials by a
nonexempt institution without having first duly registered with the
division] and having obtained the requisite surety;
(b) a registration statement application that contains material representations which are incomplete, improper, or incorrect;
(c) failure to maintain facilities and equipment in a safe and healthful manner;
(d) failure to perform the services or provide materials as represented by the institution, failure to perform any commitment made in the registration statement or permit application, offering programs or services not contained in the registration statement currently on file, or violations of the conditions of the certificate of registration;
(e) failure to maintain sufficient financial capability, as set forth in section R152-34-7;
(f) to confer, or attempt to confer, a fraudulent credential, as set forth in 13-34-201;
(g) employment of students for commercial gain, if such fact is not contained in the current registration statement;
(h) promulgation to the public of fraudulent or misleading statements relating to a program or service offered;
g]) [ noncompliance of] the Postsecondary Proprietary Schools
Act or these rules;
h]) withdrawal of the authority to operate in the home state
of an institution whose parent campus or headquarters is not
domiciled in this state;
i]) failure to comply with applicable laws in this state or
another state where the institution is doing business; and
j]) failure to provide reasonable information to the [ division] as requested from time to time.
R152-34-11. Rules Relating to Fraudulent Educational Credentials under Section 13-34- 201.
(1) A person may not represent him or herself in a deceptive or misleading way, such as by using the title "Dr." or "Ph.D." if he or she has not satisfied accepted academic or scholastic requirements.
KEY: consumer protection, education, postsecondary proprietary schools, registration
Date of Enactment or Last Substantive Amendment: [
August 9, 2010]
Notice of Continuation: June 14, 2012
Authorizing, and Implemented or Interpreted Law: 13-2-5(1)
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at http://www.rules.utah.gov/publicat/bull-pdf/2012/b20121015.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Angela Hendricks at the above address, by phone at 801-530-6035, by FAX at 801-538-6001, or by Internet E-mail at email@example.com.