GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	3 

HOUSE BILL 293
Committee Substitute Favorable 4/14/99
Senate Education/Higher Education Committee Substitute Adopted 6/3/99

Short Title:  Proprietary Sch./Civil Penalties/AB.	(Public)

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Sponsors:

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Referred to: 

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March 4, 1999

A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE STATE BOARD OF COMMUNITY COLLEGES TO ASSESS MONETARY PENALTIES AGAINST PROPRIETARY SCHOOLS THAT OPERATE WITHOUT A LICENSE OR OPERATE OUTSIDE THE SCOPE OF THEIR LICENSE.
The General Assembly of North Carolina enacts:
Section 1.  Article 8 of Chapter 115D of the General Statutes is amended by adding a new section to read:
"§ 115D-93.1.  Operation without a license or outside scope of license; penalty.
Upon its determination that a person is in violation of this Article, the State Board shall immediately notify the person and may assess a civil penalty not to exceed one thousand dollars ($1,000) against that person.  In determining the amount of this penalty, the State Board shall consider the degree and extent of harm or potential harm caused by the violation.  In addition, beginning on the thirtieth day following the date the Board makes this determination and sends the required notification, the person is liable for a civil penalty of one hundred dollars ($100.00) for each day the person continues to be in violation of this Article.  A person is in violation of this Article if the person owns or operates a proprietary school (i) that is operating in the State without a license as required under this Article or (ii) that is offering a program of instruction, course, or subject that is not specifically indicated in the school's application for a license under this Article.  Civil penalties assessed under this section may be in addition to any other penalties or sanctions the State Board may impose for violation of this Article.  This section is subject to Articles 3 and 4 of Chapter 150B of the General Statutes.  The clear proceeds of civil penalties assessed under this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2."
Section 2.  G.S. 115D-87 is amended by adding a new subdivision to read:
"(3a)	'Proprietary school' means a correspondence school, a proprietary business school, a proprietary trade school, or a proprietary technical school as defined in this section."
Section 3.  This act becomes effective October 1, 1999, and applies to offenses occurring on or after that date.