NEWFOUNDLAND REGULATION 24/99

CNR 1114/96
as amended

1. Section 2 of the Private Training Institutions Regulations is amended by adding immediately after paragraph (b) the following:

(b.1) "corporation" means the Private Training Corporation incorporated under section 4 of the Act;

2. The regulations are amended by adding immediately after section 3 the following:

Board membership

3.1 The board of directors of the corporation shall be comprised of the following persons as appointed by the Lieutenant-Governor in Council:

(a) one representative of the Department of Education;

(b) one representative of the Department of Finance;

(d) one owner or operator of a private training institution;

(e) one student of a private training institution; and

(f) 2 community representatives.

3. (1) Section 4 of the regulations is amended by adding immediately after subsection (1) the following:

(1.1) The superintendent shall approve every course of study offered by an institution prior to the registration of that institution, or in the case of renewal of registration or reinstatement, every new course of study not previously approved, and shall, for the purpose of his or her assessment, require and review

(a) a needs assessment, including a market analysis;

(b) admission standards;

(d) program duration; and

(e) graduate certification.

(2) Subsection 4(2) of the regulations is amended by deleting the semi-colon and the word "and" at the end of paragraph (d), by deleting the period at the end of paragraph (e) and substituting a semi-colon and the word "and", and by adding immediately after that the following:

(f) a security bond required under subsection 10(1).

(3) Subsection 4(4) of the regulations is repealed and the following substituted:

(4) An application for renewal of registration or reinstatement shall be accompanied by

(a) a security bond or continuation certificate covering the security bond required under subsection 10(1); and

(b) an audited financial statement in compliance with section 10.2.

4. Paragraph 5(4)(b) of the regulations is amended by deleting the words and figure "90 consecutive days" and substituting the words and figure "10 working days".

5. (1) Subsections 10(1) and (2) of the regulations are repealed and the following substituted:

Security

10. (1) A private training institution shall obtain a security bond in the minimum amount of $50,000 or 15% of the institution's total tuition revenue to the nearest $1,000 from the previous academic year, whichever is greater.

(2) The maximum amount for the security bond

(a) as of January 1, 1999 shall be $100,000;

(b) as of January 1, 2000 shall be $125,000; and

(2.1) Subsections (1) and (2) shall apply to a private training institution upon the registration, re-registration or reinstatement of that private training institution.

(2) Subsection 10(6) of the regulations is amended by deleting the word and figure "2 years" and substituting the word and figure "6 months".

(3) Subsections 10(7), (8), (9) and (10) of the regulations are amended by deleting the word and figure "2 year" wherever they appear and substituting the word and figure "6 month".

6. The regulations are amended by adding immediately after section 10.1 the following:

Audited financial statements

10.2 (1) A private training institution shall submit to the minister an audited financial statement setting out

(a) its assets and liabilities; and

(b) its receipts and expenditures for the preceding financial year.

(2) A statement required under subsection (1) shall be filed within 3 months of the end of the private training institution's financial year.

7. The regulations are amended by adding immediately after section 26 the following:

Funds to be credited

26.1 The Train Out Fund established under section 17.1 of the Act may be credited with funds from the following sources:

(a) contributions from a private training institution required under subsection 17.1(3) of the Act;

(b) any income and earnings from investments of the funds; and

Payment of funds

26.2 (1) A private training institution shall pay to the corporation a contribution to the Train Out Fund as required by subsection 17.1(3) of the Act at an annual rate of 1% of collected student tuition fees.

(2) Money paid under subsection (1) shall be paid on March 31, June 30, September 30 and December 31 in a year, and shall be based on the tuition fees collected by the private training institution for the 3 months of the preceding quarter.

(3) The corporation shall reconcile the money paid under subsection (1) and shall make any adjustments necessary annually at the end of a private training institution's financial year and those adjustments shall be completed by March 31 following the end of the private training institution's financial year.

Use of Train Out Fund

26.3 (1) The Train Out Fund may be used

(a) where an institution with which a student had a contract fails to fulfil its obligation to that student due to closure to compensate the student in part or in full for the reasonable cost of completing his or her training with another institution, as determined by the corporation;

(b) to pay the cost of monitoring the financial operation of a private training institution, including the analysis of audited financial statements as required by these regulations;

(d) to reimburse members of the board of directors of the corporation for expenses incurred in relation to meetings and the work of the corporation in accordance with a scale for expenses that may be approved by the minister.

(2) Where the Train Out Fund is used to pay out money under paragraph (1)(a), the corporation shall hold back sufficient money to enable it to meet its obligations under paragraphs (1)(b), (c), and (d) and an amount it considers reasonable for the purpose of subsection 26.2(3).

Investments of
Train Out Fund

26.4 Investments of the Train Out Fund by the corporation shall be investments in which a trustee is authorized to invest under the Trustee Act.

Designation for student assistance

26.5 Notwithstanding the Student Assistance Act or regulations, a private training institution shall not be designated as an institution which offers courses for which student assistance is available unless it

(a) has been in continuous operation as a registered private training institution for one year; and

(b) has graduated one class of students.

Information provided to students

26.6 (1) Information as required by the minister shall be provided to a student 48 hours before that student enters into a contract with a private training institution.

(2) This section shall come into force on September 1, 1999.

Commencement

8. These regulations, except as stated, shall be considered to have come into force on January 1, 1999.