Enrolled Copy S.B. 180
1 PRIVATE POSTSECONDARY EDUCATION MODIFICATIONS
2 2023 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Curtis S. Bramble
5 House Sponsor: Stephen L. Whyte
6
7 LONG TITLE
8 General Description:
9 This bill repeals the Utah Postsecondary School State Authorization Act and repeals,
10 reenacts, and modifies provisions of the Utah Postsecondary Proprietary School Act as
11 the Utah Postsecondary School and State Authorization Act.
12 Highlighted Provisions:
13 This bill:
14 < repeals the Utah Postsecondary School State Authorization Act;
15 < repeals, reenacts, and modifies the Utah Postsecondary Proprietary School Act as
16 the Utah Postsecondary School and State Authorization Act;
17 < requires a postsecondary school operating in the state to file a registration statement
18 and obtain certain certificates from the Division of Consumer Protection (division);
19 < establishes qualifications for a procedure by which a postsecondary school may
20 obtain a registration certificate and state authorization certificate from the division;
21 < provides that, under certain circumstances, the division may deny, suspend, or
22 revoke a registration statement, registration certificate, or state authorization
23 certificate;
24 < provides procedures to enforce compliance with the provisions of this bill;
25 < permits the division to enter into an interstate reciprocity agreement;
26 < authorizes the Utah Board of Higher Education to make rules to implement an
27 interstate reciprocity agreement if the agreement includes institutions of higher
28 education;
29 < grants the division rulemaking authority;
S.B. 180 Enrolled Copy
30 < defines terms; and
31 < makes technical changes.
32 Money Appropriated in this Bill:
33 None
34 Other Special Clauses:
35 This bill provides a special effective date.
36 Utah Code Sections Affected:
37 AMENDS:
38 13-2-1 (Effective 12/31/23), as last amended by Laws of Utah 2022, Chapters 201, 462
39 13-53-102, as enacted by Laws of Utah 2018, Chapter 252
40 16-6a-401, as last amended by Laws of Utah 2022, Chapter 457
41 16-10a-401, as last amended by Laws of Utah 2022, Chapter 457
42 16-11-16, as last amended by Laws of Utah 2022, Chapter 457
43 42-2-6.6, as last amended by Laws of Utah 2022, Chapter 457
44 48-1d-1105, as last amended by Laws of Utah 2022, Chapter 457
45 48-2e-108, as last amended by Laws of Utah 2022, Chapter 457
46 48-3a-108, as last amended by Laws of Utah 2022, Chapter 457
47 ENACTS:
48 13-34-202, Utah Code Annotated 1953
49 13-34-203, Utah Code Annotated 1953
50 13-34-204, Utah Code Annotated 1953
51 13-34-205, Utah Code Annotated 1953
52 13-34-301, Utah Code Annotated 1953
53 13-34-302, Utah Code Annotated 1953
54 13-34-303, Utah Code Annotated 1953
55 REPEALS AND REENACTS:
56 13-34-101, as enacted by Laws of Utah 2002, Chapter 222
57 13-34-102, as enacted by Laws of Utah 2002, Chapter 222
-2-
Enrolled Copy S.B. 180
58 13-34-103, as last amended by Laws of Utah 2018, Chapter 276
59 13-34-104, as last amended by Laws of Utah 2010, Chapter 378
60 13-34-105, as last amended by Laws of Utah 2021, Chapter 266
61 13-34-106, as last amended by Laws of Utah 2014, Chapter 360
62 13-34-107, as last amended by Laws of Utah 2011, Chapter 221
63 13-34-108, as last amended by Laws of Utah 2011, Chapter 221
64 13-34-109, as enacted by Laws of Utah 2002, Chapter 222
65 13-34-110, as last amended by Laws of Utah 2014, Chapter 360
66 13-34-111, as last amended by Laws of Utah 2005, Chapter 242
67 13-34-112, as enacted by Laws of Utah 2002, Chapter 222
68 13-34-113, as last amended by Laws of Utah 2014, Chapter 360
69 13-34-201, as enacted by Laws of Utah 2002, Chapter 222
70 REPEALS:
71 13-34-114, as last amended by Laws of Utah 2018, Chapter 281
72 13-34a-101, as enacted by Laws of Utah 2014, Chapter 360
73 13-34a-102, as last amended by Laws of Utah 2021, Chapter 266
74 13-34a-103, as enacted by Laws of Utah 2014, Chapter 360
75 13-34a-104, as last amended by Laws of Utah 2020, Chapter 365
76 13-34a-201, as enacted by Laws of Utah 2014, Chapter 360
77 13-34a-202, as enacted by Laws of Utah 2014, Chapter 360
78 13-34a-203, as enacted by Laws of Utah 2014, Chapter 360
79 13-34a-204, as last amended by Laws of Utah 2021, Chapter 266
80 13-34a-205, as enacted by Laws of Utah 2014, Chapter 360
81 13-34a-206, as enacted by Laws of Utah 2014, Chapter 360
82 13-34a-207, as last amended by Laws of Utah 2017, Chapter 98
83 13-34a-301, as enacted by Laws of Utah 2014, Chapter 360
84 13-34a-302, as enacted by Laws of Utah 2014, Chapter 360
85 13-34a-303, as enacted by Laws of Utah 2014, Chapter 360
-3-
S.B. 180 Enrolled Copy
86 13-34a-304, as enacted by Laws of Utah 2014, Chapter 360
87 13-34a-305, as enacted by Laws of Utah 2014, Chapter 360
88 13-34a-306, as enacted by Laws of Utah 2014, Chapter 360
89
90 Be it enacted by the Legislature of the state of Utah:
91 Section 1. Section 13-2-1 (Effective 12/31/23) is amended to read:
92 13-2-1 (Effective 12/31/23). Consumer protection division established --
93 Functions.
94 (1) There is established within the Department of Commerce the Division of Consumer
95 Protection.
96 (2) The division shall administer and enforce the following:
97 (a) Chapter 5, Unfair Practices Act;
98 (b) Chapter 10a, Music Licensing Practices Act;
99 (c) Chapter 11, Utah Consumer Sales Practices Act;
100 (d) Chapter 15, Business Opportunity Disclosure Act;
101 (e) Chapter 20, New Motor Vehicle Warranties Act;
102 (f) Chapter 21, Credit Services Organizations Act;
103 (g) Chapter 22, Charitable Solicitations Act;
104 (h) Chapter 23, Health Spa Services Protection Act;
105 (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
106 (j) Chapter 26, Telephone Fraud Prevention Act;
107 (k) Chapter 28, Prize Notices Regulation Act;
108 (l) Chapter 32a, Pawnshop, Secondhand Merchandise, and Catalytic Converter
109 Transaction Information Act;
110 [(m) Chapter 34, Utah Postsecondary Proprietary School Act;]
111 [(n) Chapter 34a, Utah Postsecondary School State Authorization Act;]
112 (m) Utah Postsecondary School and State Authorization Act;
113 [(o)] (n) Chapter 41, Price Controls During Emergencies Act;
-4-
Enrolled Copy S.B. 180
114 [(p)] (o) Chapter 42, Uniform Debt-Management Services Act;
115 [(q)] (p) Chapter 49, Immigration Consultants Registration Act;
116 [(r)] (q) Chapter 51, Transportation Network Company Registration Act;
117 [(s)] (r) Chapter 52, Residential Solar Energy Disclosure Act;
118 [(t)] (s) Chapter 53, Residential, Vocational and Life Skills Program Act;
119 [(u)] (t) Chapter 54, Ticket Website Sales Act;
120 [(v)] (u) Chapter 56, Ticket Transferability Act;
121 [(w)] (v) Chapter 57, Maintenance Funding Practices Act; and
122 [(x)] (w) Chapter 61, Utah Consumer Privacy Act.
123 Section 2. Section 13-34-101 is repealed and reenacted to read:
124 CHAPTER 34. UTAH POSTSECONDARY SCHOOL AND STATE AUTHORIZATION
125 ACT
126 Part 1. General Provisions
127 13-34-101. Definitions.
128 As used in this chapter:
129 (1) "Accredited postsecondary school" means a postsecondary school that is accredited
130 by an accrediting agency.
131 (2) "Accrediting agency" means a private educational association that:
132 (a) is recognized by the United States Department of Education;
133 (b) develops education criteria; and
134 (c) conducts evaluations to assess whether a postsecondary school meets the criteria
135 described in Subsection (2)(b).
136 (3) "Agent" means a person who:
137 (a) owns an interest in a postsecondary school;
138 (b) is employed by a postsecondary school;
139 (c) enrolls or attempts to enroll a Utah resident in a postsecondary school;
140 (d) offers to award an educational credential on behalf of a postsecondary school; or
141 (e) holds oneself out to a Utah resident as representing a postsecondary school for any
-5-
S.B. 180 Enrolled Copy
142 purpose.
143 (4) "Apprentice" means the same as that term is defined in Section 35A-6-102.
144 (5) "Apprenticeship" means the same as that term is defined in Section 35A-6-102.
145 (6) "Distance postsecondary education" means the same as that term is defined in 20
146 U.S.C. Sec. 1003(7).
147 (7) "Division" means the Division of Consumer Protection.
148 (8) "Educational credential" means a degree, diploma, certificate, transcript, report,
149 document, letter of designation, mark, or series of letters, numbers, or words that represent
150 enrollment, attendance, or satisfactory completion of the requirements or prerequisites of an
151 educational program.
152 (9) "Longstanding nonprofit accredited postsecondary school" means an accredited
153 postsecondary school that:
154 (a) is a nonprofit organization; and
155 (b) has operated continuously as a nonprofit for at least 20 years.
156 (10) "Nonprofit organization" means a nonprofit corporation or foreign nonprofit
157 corporation as those terms are defined in Section 16-6a-102.
158 (11) "Operate" means to:
159 (a) maintain a physical presence in the state; or
160 (b) provide postsecondary education to an individual who resides in the state.
161 (12) "Physical presence" means:
162 (a) to maintain in the state a physical location where a student receives postsecondary
163 education; or
164 (b) to provide to a student distance postsecondary education from a location in this
165 state.
166 (13) (a) "Postsecondary education" means education or educational services offered
167 primarily to an individual who:
168 (i) has completed or terminated their secondary or high school education; or
169 (ii) is beyond the age of compulsory school attendance.
-6-
Enrolled Copy S.B. 180
170 (b) "Postsecondary education" does not include instruction at or below the 12th grade
171 level.
172 (14) "Postsecondary school" means a person that offers postsecondary education:
173 (a) in exchange for payment of tuition, fees, or other consideration; and
174 (b) for the purpose of attaining educational, professional, or vocational objectives.
175 (15) "Principal" means a postsecondary school's owner, officer, director, trustee, or
176 administrator.
177 (16) "Public postsecondary school" means a postsecondary school that is:
178 (a) (i) an institution listed in Section 53B-1-102; or
179 (ii) established by another state or other governmental entity; and
180 (b) substantially supported with government funds.
181 (17) "Reciprocity agreement" means an agreement the division enters into with another
182 state in accordance with Section 13-34-303.
183 (18) (a) "Registration certificate" means approval from the division to operate a
184 postsecondary school in accordance with this chapter, and with rules adopted in accordance
185 with this chapter.
186 (b) "Registration certificate" does not mean an approval or endorsement of the
187 postsecondary school by the division or the state.
188 (19) "Registration statement" means an application and accompanying documentation
189 required under this chapter for:
190 (a) a registration certificate; or
191 (b) a state authorization certificate.
192 (20) (a) "State authorization certificate" means a certificate that the division issues to
193 an accredited postsecondary school in accordance with Section 13-34-302.
194 (b) "State authorization certificate" does not mean an approval or endorsement of the
195 accredited postsecondary school by the division or the state.
196 (21) "Student" means:
197 (a) a person who pays or is obligated to pay a postsecondary school for postsecondary
-7-
S.B. 180 Enrolled Copy
198 education; or
199 (b) a legal guardian of a person described in Subsection (21)(a).
200 Section 3. Section 13-34-102 is repealed and reenacted to read:
201 13-34-102. Division responsibilities.
202 (1) The division shall:
203 (a) exercise its enforcement powers in accordance with Chapter 2, Division of
204 Consumer Protection, and this chapter;
205 (b) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
206 Rulemaking Act, to:
207 (i) establish the content of a registration statement required under this chapter;
208 (ii) establish a process for reviewing and responding to complaints the division
209 receives in accordance with this chapter; and
210 (iii) establish a graduated fee structure in accordance with Section 63J-1-504 for filing
211 a registration statement;
212 (c) issue a registration certificate or state authorization certificate to a postsecondary
213 school upon the division's receipt and approval of a qualifying registration statement;
214 (d) maintain and publish a list of postsecondary schools to which the division has
215 issued a:
216 (i) registration certificate; or
217 (ii) state authorization certificate; and
218 (e) deposit fees established in accordance with Subsection (1)(b)(iii), and collected in
219 accordance with this chapter into the Commerce Service Account created in Section 13-1-2.
220 (2) The division may:
221 (a) accept a copy of an educational credential from a postsecondary school that ceases
222 operation;
223 (b) charge a reasonable fee for providing a copy of an educational credential;
224 (c) upon request, provide a letter confirming that a postsecondary school is exempt
225 from registration in accordance with Section 13-34-111; and
-8-
Enrolled Copy S.B. 180
226 (d) negotiate and enter into an interstate reciprocity agreement with another state, if in
227 the judgment of the division, the agreement is consistent with the purposes of this chapter.
228 Section 4. Section 13-34-103 is repealed and reenacted to read:
229 13-34-103. Rulemaking authority.
230 In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
231 division may make rules:
232 (1) establishing the form and content of:
233 (a) a registration statement; and
234 (b) a surety bond, certificate of deposit, irrevocable letter of credit, or other proof of
235 financial viability required under Section 13-34-202;
236 (2) specifying the information a postsecondary school is required to provide with a
237 registration statement, which may vary based upon factors including:
238 (a) the certificate the postsecondary school seeks;
239 (b) whether the postsecondary school is an accredited postsecondary school; and
240 (c) whether the postsecondary school is a longstanding nonprofit accredited
241 postsecondary school;
242 (3) establishing the amount of a surety bond, certificate of deposit, or irrevocable letter
243 of credit required under Section 13-34-202, not to exceed an amount equal to the tuition and
244 fees a postsecondary school anticipates receiving during a school year;
245 (4) providing for the execution and cancellation of the surety bond, certificate of
246 deposit, or irrevocable letter of credit a postsecondary school obtains in accordance with
247 Section 13-34-202;
248 (5) establishing the amount of money a school may charge a student in a 12 month
249 period to qualify for an exemption in accordance with Subsection 13-34-11(3)(d)(i)(C);
250 (6) specifying acts or practices that:
251 (a) are prohibited in accordance with Section 13-34-108; and
252 (b) a postsecondary school that intends to cease operating is required to carry out;
253 (7) specifying student outcomes a postsecondary school is required to disclose under