CONSOLIDATED NEWFOUNDLAND REGULATION 1114/96

Short title

1. These regulations may be cited as the Private Training Institutions Regulations.

194/89 s1

Definitions

2. In these regulations

(a) "Act" means the Private Training Institutions Act;

(b) "certificate" means the document awarded to candidates who successfully complete a post‑secondary education program that requires fewer than 2000 instructional hours or an equivalent;

(c) "correspondence course" means a course of study which is delivered by print, audio, video or electronic media in which students complete assigned work and return the material for grading;

(d) "course" means a program of study which includes 50 or more instructional hours or an equivalent;

(e) "demonstrator" means a person who assists with instruction;

(f) "department" means the Department of Education;

(g) "diploma" means the document awarded to candidates who successfully complete a post‑secondary education program that requires a minimum of 2000 instructional hours or an equivalent;

(h) "instruction" means classroom teaching, formalized lab or shop work;

(i) "minister" means the minister appointed under the Executive Council Act to administer the Act;

(j) "non‑resident school" means a private training institution which does not operate a physical plant within the province;

(k) "semester" means a minimum period of 13 weeks and a maximum period of 17 weeks for resident schools; and

(l) "vocation" means each of the occupations included in the alphabetical index of occupational titles in Volume I of the Canadian Classification and Dictionary of Occupations (CCDO) 1971 and the CCDO Guide, Fourth Edition, 1982 and subsequent CCDO guides as published by the Canadian Government Publishing Centre in Ottawa.

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Jurisdiction and exemptions

3. (1) These regulations apply to all private training institutions except a private training institution conducted or operated by

(a) a religious organization;

(b) a corporation without share capital incorporated under the laws of Canada or the province; or

(2) A vocation consisting of aircraft training taught by an organization under the supervision of the Ministry of Transport of the Government of Canada is exempt from sections 7, 8 and 24.

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Registration ‑ renewal

4. (1) A person applying to be registered as the keeper or operator of a private training institution shall make application to the minister in a form approved by the minister.

(2) An application for registration shall be accompanied by the following:

(a) a cheque payable to the Newfoundland Exchequer Account for the amount of the registration fee;

(b) information as requested by the minister;

(c) a copy of the student contract form for the taking of a course of instruction used or proposed to be used by the private training institution;

(d) a copy of the catalogues, sales circulars and other advertisements proposed to be used in connection with the private training institution; and

(e) the names and addresses of all sales agents operating in the province who are employed by or in connection with the private training institution and information as to whether the private training institution is situated inside or outside of the province.

(3) An applicant shall comply with applicable municipal and provincial laws.

(4) An application for registration, renewal of registration or reinstatement shall be accompanied by a security bond or a continuation certificate covering the security bond required by subsection 10(1).

(5) During the time that an application for registration of a private training institution is being processed by the department, no significant changes shall be made in the application without the written approval of the superintendent.

(6) A registration is not transferable.

(7) An application for renewal of registration shall be accompanied by

(a) a cheque payable to the Newfoundland Exchequer Account for the amount of the registration fee; and

(b) a detailed statement outlining changes proposed to be made in the facts set out in previous applications for registration and renewal.

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Refusal of registration ‑ cancellation

5. (1) An applicant is entitled to registration or renewal of registration by the minister to conduct or operate a private training institution and to be issued a certificate of registration except where

(a) the applicant cannot demonstrate its financial ability to operate a private training institution;

(b) past conduct on the part of the applicant affords reasonable grounds for belief that the applicant will not operate the private training institution in accordance with the law or with accepted educational or professional ethics; or

(2) The minister may cancel registration for specific programs of study where it can reasonably be expected that the course or courses of study or the method of training offered by the private training institution is not in compliance with the stated objectives of the program as approved.

(3) The minister may cancel a private training institution's registration where the applicant is carrying on activities that are or will be, if the applicant is registered, in contravention of this Act or the regulations.

(4) The registration of a private training institution may be cancelled

(a) upon request in writing of the registrant in the form prescribed by the minister; and

(b) where, without due notice to the department, a keeper or operator of a private training institution ceases to operate the institution for a period of 90 consecutive days.

(5) A private training institution which has its registration cancelled or voluntarily cancels its registration shall surrender the certificate of registration within 30 days.

(6) Where the registration of a keeper or operator of a private training institution is refused or cancelled, the registration of all agents, sales personnel and representatives of the private training institution are also refused or cancelled.

(7) Notice of a cancellation of registration of a private training institution shall be published by the department.

(8) The minister may require a private training institution to submit for review further information or other material respecting the operation of the private training institution.

194/89 s5

6. (1) All advertising for private training institutions shall be in accordance with the Trade Practices Act.

(2) An advertisement for a private training institution shall include the name and address and telephone number of the private training institution.

(3) All private training institutions offering courses covered by these regulations are required to be licensed before advertising in the province.

(4) Only private training institutions which are registered for programs approved by the department can use the following words in its advertisements "Registered and approved under the Private Training Institutions Act, Province of Newfoundland".

(5) A private training institution shall not guarantee employment to a student or prospective student.

(6) The minister may require that duplicate copies of all advertisements relating to private training institutions be submitted for approval before being used.

(7) The minister may require a private training institution to discontinue use of an advertisement found to be in contravention of the Act or these regulations.

194/89 s7

Instructional and sales staff

7. (1) Private training institutions shall seek approval for instructional staff before hiring in a format specified by the minister.

(2) Every instructor at a private training institution shall possess a certificate or diploma related to the field of instruction supplemented by years of experience within the field and the combination of training and experience shall equal a total of 6 years.

(3) Every demonstrator at a private training institution shall possess a certificate or diploma related to the field of instruction supplemented by a minimum of one year of related work experience.

(4) All instructors at private training institutions shall be required to complete a teacher training program as prescribed by the minister.

194/89 s8

Ministerial approval

8. Notwithstanding subsection 7(2), the minister may approve the employment of an instructor or demonstrator at a private training institution who in the opinion of the minister is proficient in the subject or subjects which that person proposes to teach at the private training institution or who in the opinion of the minister is proficient in the vocation or occupation for which instruction is to be given by that instructor or demonstrator.

194/89 s9

Registration required

9. Sales agents for non‑resident schools shall be registered under the Direct Sellers' Act.

194/89 s10

Security

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

(2) The maximum amount required for the security bond shall be

(a) as of January 2, 1990, $50,000; and

(b) as of January 2, 1991, $75,000.

(3) The bond referred to under subsections (1) and (2) shall continue in force for a period of 2 years following the cancellation of registration or the cancellation of the bond.

(4) The bond referred to under subsections (1) and (2) is forfeited and the amount of the bond becomes due and payable as a debt to the Crown and the minister may call upon the bonding company to satisfy the amount owing to the student

(a) where a keeper or operator of a private training institution fails to make the repayment of fees to a student prescribed by sections 17 and 18;

(b) where a registrant has been convicted of

(i) an offence under the Act, or

(ii) an offence involving fraud or theft or conspiracy to commit an offence involving fraud or theft under the Criminal Code and where the conviction has become final;

(c) where proceedings by or in respect of a registrant have been taken under the Bankruptcy Act (Canada) either by way of assignment or by petition or where proceedings have been taken by way of winding up and in the case of a petition, a receiving order under the Bankruptcy Act (Canada) or a winding up order has been made and the order has become final; or

(d) where during the 2 year period mentioned in subsection (3) the minister receives a notice in writing of a claim against the registrant by or on behalf of a student in respect of a course of instruction or a contract for a course of instruction together with evidence satisfactory to the minister as to the validity of the claim or that legal proceedings have been commenced against the registrant.

(5) Where the Crown becomes a creditor or a person in respect of a debt due the Crown arising from the provisions of subsection (4), the minister may take proceedings as he or she considers appropriate under the Bankruptcy Act (Canada), the Judicature Act, the Corporations Act or the Winding Up Act (Canada) for the appointment of an interim receiver, custodian, trustee, receiver or liquidator.

(6) The minister may, within 2 years of the forfeiture, pay over money recovered under the bond to a judgment creditor where the judgment was based on a claim in respect of a course of instruction or a contract for a course of instruction.

(7) Where the proceeds of the bond are insufficient to satisfy the total amount of all the judgments filed with the minister within the 2 year period from the date of forfeiture mentioned in subsection (4), the minister may distribute the proceeds of the bond among the judgment creditors proportionately.

(8) When the proceeds of the bond exceed the total amount of the judgments filed with the minister within the 2 year period from the date of forfeiture mentioned in subsection (4), the minister may pay the remaining balance of the proceeds of the bond to the person who paid over the proceeds of the bond under subsections (1) and (2).

(9) Only judgments of creditors that have become final before the expiration of the 2 year period from the date of forfeiture mentioned in subsection (6) shall be eligible to share in the proceeds of the bond.

(10) Notwithstanding subsection (9), the minister may pay to the Trial Division from the proceeds of the bond the amount of a judgment of a creditor where a judgment has been obtained but has not become final before the expiration of the 2 year period from the date of forfeiture mentioned in subsection (6) and that amount shall be held in trust for the creditor until the judgment becomes final.

194/89 s11

Certificate to be displayed

11. (1) The owner or operator of a private training institution shall display the certificate of registration in a location on the premises where it can be readily observed by the students and the public.

(2) The owner or operator of a private training institution shall, upon request, make available to a student of the institution an up‑to‑date copy of these regulations.

194/89 s12

Provincial agent

12. The minister may require that a private training institution have in the province an agent or manager who has authority to accept or cancel contracts for the private training institution and to repay or refund money paid by or on behalf of persons for or on account of fees.

194/89 s13

Contract

13. Instruction shall not be given to a student in a private training institution until a contract, the form of which has been approved by the minister, has been completed between the student and the keeper or operator of the private training institution and every contract shall include

(a) the subjects included in the course of study;

(b) the tuition fee for the course;

(c) the total cost to the student of instructional materials and equipment required for the course of instruction and for which the student will be charged in addition to the regular tuition fee;

(d) the commencement date for the course of instruction; and

(e) in the case of a course of instruction by correspondence, a termination date for completion of the course or a statement of contract time for refund purposes.

194/89 s14

Details required

14. A contract for a course of instruction shall set out either in the body of the contract or on a separate sheet that is annexed and forms part of the contract a statement in bold face type that

(a) the contract is subject to the Act and the regulations made under the Act; and

(b) refunds are available in accordance with sections 17 and 18.

194/89 s15

Voiding of contract

15. (1) Except where part of the course of instruction has been supplied and serviced, where a commencement date for a course of instruction is not stated in the contract, the contract is voidable at the option of the student.

(2) A student may exercise the option under subsection (1) by giving notice in writing by registered mail to the private training institution of the student's intention to treat the contract with the private training institution as void.

194/89 s16

Student registration fee

16. A private training institution may charge a student registration fee prescribed by the minister and that registration fee shall be applied to the total cost of the course of instruction.

194/89 s17

Retention and repayment of fees

17. (1) Where a student has contracted for a course of instruction at a private training institution and subsequently exercises the option to void the contract at least 21 days before the commencement date of the course, the private training institution shall refund money paid by or on behalf of the student including the registration fee under section 16.

(2) Where a student has contracted for a correspondence course at a private training institution and subsequently exercises the option to void the contract within 14 days of signing the contract, the private training institution shall refund money paid by or on behalf of the student including the registration fee under section 16.

(3) Notwithstanding any provision contained in a contract in respect of a course of instruction at a private training institution, the institution shall not retain money paid for or on account of instruction given by the private training institution where the registrant or representative of the private training institution has made false or misleading statements regarding the course of instruction or regarding the nature of the contract for the purpose of inducing a person to enter into the contract and all money so received shall be immediately repaid to the person who has paid it and the contract is void.

194/89 s18

Exceptions to refunds

18. (1) Students of private training institutions shall be entitled to a refund of money paid with the exception of the registration fee under section 16 where the student has contracted for a course of instruction at a private training institution and gives notice in writing either delivered personally or by registered mail to the private training institution less than 21 days before the commencement date of the course of instruction of the student's intention not to commence the course of instruction.

(2) Students of private training institutions shall be entitled to a refund of money paid with the exception of the registration fee under section 16 and 10% of the total course fees where

(a) the student has contracted for a course at a private training institution and does not give notice in writing by registered mail to the private training institution before the commencement date of the student's intention not to commence the course of instruction and does not attend the first 5 consecutive days of the course of instruction; or

(b) the student has contracted for a course of instruction for a correspondence course at a private training institution and gives notice in writing by registered mail to the private training institution more than 14 days after signing the contract and provided all lessons have been returned in good condition.

(3) Students of private training institutions shall be entitled to a refund of money paid where

(a) the student has contracted for a course of instruction at a private training institution and gives notice in writing either delivered personally or by registered mail to the private training institution after the commencement date of the course of instruction of the student's intention to cease taking the course of instruction;

(b) the student has contracted for a course of instruction at a private training institution and fails to exercise the option to void the contract under section 15 before the date upon which the first class is held, then exercises the option notwithstanding that the student may not have participated in the course of instruction;

(c) the student has contracted for a correspondence course at a private training institution and exercises the option to void a contract under section 15 after part of the course of instruction has been supplied and serviced; or

(d) a private training institution

(i) has the registration cancelled,

(ii) has the renewal of the registration refused and the registration has expired, or

(iii) has not applied for renewal of registration and the registration has expired.

(4) Refund of money referred to in subsection (3) shall not include

(a) the registration fee under section 17;

(b) the fees for the proportion of the course already supplied and serviced or in the case of correspondence courses the fee for lessons supplied and evaluated, and for the purposes of this paragraph any portion of a week shall be considered one week in determining the amount of the refund; and

(c) the retail cost of equipment that has been supplied to the student by the private training institution unless the equipment has been returned to the private training institution unopened or as issued within 10 days of receipt by the student.

194/89 s19

Refund not required

19. (1) Where a private training institution has supplied and serviced two‑thirds or more of a course of instruction and has not received a proper notice of a student's intention to cease attending the course before that date, the private training institution shall not be obliged to refund money paid for or on account of the fees by or on behalf of a person who has contracted for that course of instruction.

(2) The private training institution is not required to repay money to a student, where

(a) a student has contracted for a course of instruction at a private training institution and the registration of this private training institution is cancelled or expires before the course of instruction has been completed;

(b) where a course of instruction offered by another registered private training institution is the same or similar to the course of instruction contracted by the student under paragraph (a); and

(c) where the student and the private training institution referred to in paragraph (a) agree in writing with the owner or operator of the registered private training institution referred to in paragraph (b) that the student will complete the course of instruction at the registered private training institutions referred to in paragraph (b) at no additional cost to the student.

194/89 s20

Tuition fees

20. A private training institute shall collect from students tuition fees not in excess of the amount required to cover one semester at a time.

194/89 s21

Acknowledgment and account statement

21. Where a private training institution received a proper notice of a student's intention to withdraw from a course, the private training institution shall acknowledge receipt of the notice and provide the student with a statement of money retained by the private training institution.

194/89 s22

Time of refund

22. (1) Where a private training institution is required to refund money under sections 17 and 18, refunds shall be made to the person entitled within 30 days of the receipt by the private training institution of the notice referred to in sections 17 and 18.

(2) If a student received a student loan, the refund cheque is to be made payable both to the bank and the student.

194/89 s23

Refunds upon dismissal for cause

23. (1) Where a private training institution has after the commencement date of a course of instruction dismissed a student due to academic failure, contravention of an institution regulation, misconduct or failure to pay the required fees under a written contract for a course of instruction and the private training institution has satisfied the superintendent that the dismissal was for good cause, the private training institution shall refund money paid for or on account of the fees by or on behalf of the student except

(a) the registration fee under section 16; and

(b) the proportion of the fees for the course of instruction that the part of the course of instruction supplied and serviced to the date of dismissal bears to the course of instruction.

(2) Where a private training institution has dismissed a student under subsection (1), the private training institution may retain, in addition to the money referred to in subsection (1), an amount required to repair or replace property of the private training institution that has been damaged or destroyed as a direct result of the action or conduct of the dismissed student and the private training institution has satisfied the superintendent that the damage or destruction was caused by the wilful action of the student.

194/89 s24

Certificate ‑ diploma

24. (1) Where a student has enrolled in a private training institution for the purpose of qualifying in a specific subject and successfully completes the course of studies for that subject and where the student has fulfilled the terms of the written contract made between the student and the institution, the institution shall issue the student a certificate to evidence the successful completion of the course of studies for that subject.

(2) Where a student has enrolled in a whole course of instruction in a vocation and successfully completes the course of studies for that vocation and where the student has fulfilled the terms of the written contract made with the institution, the institution shall issue the student a certificate or diploma and a transcript of marks to evidence the successful completion of the course of instruction.

(3) Where a student has enrolled in a whole course of instruction in a vocation and fails to meet the passing standards of the course but has fulfilled the terms of the written contract made with the institution, a student shall be entitled to receive, on request from the institution, a transcript of marks.

194/89 s25

Students' goods and services

25. (1) The keeper or operator of a private training institution shall not sell or permit the goods produced or services provided by a student of the private training institute to be sold at a price in excess of 50% of the average rates for the specified goods or services in the industry.

(2) Where goods or services referred to in subsection (1) are produced or provided, a printed notice in a form approved in writing by the minister setting out the maximum prices of the goods or services and stating that the services are rendered by a student shall be displayed in a conspicuous location at the entrance of the private training institution and at other locations that the minister may require.

(3) Where a private training institution offers the services of the students to the public and shares premises where the same or similar services not performed by students of a private training institution are offered to the public, the keeper or operator of the private training institution shall erect a sign at the entrance to the school to indicate to the public that it is the entrance to the school.

194/89 s26

Verification of information

26. The minister may require a private training institution to verify by affidavit all requested information.

194/89 s27

Repeal

27. The Private Training Institutions Regulations, 1989, Newfoundland Regulation 194/89, are repealed.