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CONSOLIDATED NEWFOUNDLAND AND LABRADOR REGULATION 1114/96

Private Training Institutions Regulations
under the
Private Training Institutions Act
(O.C. 96-862)

Amended by:

74/98
77/98
24/99
34/00
84/00
2001 c42 s45
49/03
87/04
2010 c31 s16
10/11

CONSOLIDATED NEWFOUNDLAND AND LABRADOR REGULATION 1114/96

Private Training Institutions Regulations
under the
Private Training Institutions Act
(O.C. 96-862)

Under the authority of section 19 of the Private Training Institutions Act and the Subordinate Legislation Revision and Consolidation Act , the Lieutenant-Governor in Council makes the following regulations.

REGULATIONS

Analysis


       
1.   Short title

       
2.   Definitions

       
3.   Jurisdiction and exemptions

     
3.1   Board membership

       
4.   Registration - renewal

       
5.   Refusal of registration - cancellation

       
6.   Advertisement

       
7.   Instructional and sales staff

       
8.   Ministerial approval

       
9.   Registration required

     
10.   Security

 
10.01   Distribution of sufficient proceeds

 
10.02   Distribution of insufficient proceeds

 
10.03   Time limit

 
10.04   Payment into court

 
10.05   Claims by students

 
10.06   Payment directly on student loan

 
10.07   Application of certain provisions

   
10.1   Returns

   
10.2   Audited financial statements

     
11.   Certificate to be displayed

     
12.   Provincial agent

     
13.   Contract

     
14.   Details required

     
15.   Voiding of contract

     
16.   Student registration fee

     
17.   Retention and repayment of fees

     
18.   Exceptions to refunds

     
19.   Refund not required

     
20.   Tuition fees

     
21.   Acknowledgment and account statement

     
22.   Time of refund

     
23.   Refunds upon dismissal for cause

   
23.1   Student record

     
24.   Certificate - diploma

     
25.   Students' goods and services

     
26.   Verification of information

   
26.1   Funds to be credited

   
26.2   Payment of funds

   
26.3   Use of Train Out Fund

   
26.4   Investments of Train Out Fund

   
26.5   Designation for student assistance

   
26.6   Information provided to students

   
26.7   Loans

     
27.   Repeal


Short title

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

194/89 s1

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Definitions

        2. In these regulations

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

          (a.1)  "campus" means

                      (i)  a single premise at which one or more courses of study are provided by a private training institution,

                     (ii)  2 or more premises at which courses of study are provided by a private training institution and which the superintendent considers, due to the proximity of the premises, to be a campus, or

                    (iii)  2 or more premises in communities governed by the Nunatsiavut Government or the Innu Nation, at which courses of study under the Labrador Aboriginal Partnership Training Program are provided by a private training institution and which the superintendent considers to be a campus;

             (b)  Rep. by NR 84/00 s1

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

             (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 a document awarded to candidates who successfully complete a post-secondary education course of study of at least 12 weeks or 360 instructional hours duration and which certifies the number of institutional hours of that course of study;

             (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;

         (j.01)  "satellite campus" means a premise that is operated by a private training institution that

                      (i)  is geographically separate from a campus,

                     (ii)  is not a permanent site,

                    (iii)  does not provide all the educational and administrative services of a campus, and

                    (iv)  is used for the delivery of courses or programs under the Labrador Aboriginal Training Partnership;

           (j.1)  "security" means a surety bond or irrevocable letter of credit or, in the discretion of the minister, a combination of a surety bond and an irrevocable letter of credit, which is of full force and effect for the purpose of

                      (i)  securing performance of student contracts entered into by the operator, and

                     (ii)  fulfilling obligations imposed by these regulations

from a surety company or financial institution acceptable to the minister;

             (k)  "semester" means a minimum period of 12 weeks and a maximum period of 17 weeks for resident schools;

          (k.1)  "tuition fees" includes money paid by sponsors or third parties on behalf of a student; 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.

194/89 s2; 24/99 s1; 84/00 s1; 10/11 s1

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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

             (c)  a non-profit organization legally constituted under the laws of Canada or the province and not operated for profit.

             (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.

194/89 s3

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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;

             (c)  one representative of the Association of Career Colleges or its successor body;

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

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

              (f)  2 community representatives.

24/99 s2

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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.

          (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;

             (c)  curriculum content;

             (d)  program duration; and

             (e)  graduate certification.

          (1.2)  Notwithstanding subsection (1.1), the superintendent shall, every 3 years from the approval of a course of study under that subsection, review every course of study of an institution based on the criteria prescribed by paragraphs (1.1)(a) to (e) and make those requirements that he or she considers necessary.

          (1.3)  Notwithstanding subsections (1.1) and (1.2), the superintendent may, in his or her discretion, undertake an assessment of any approved course of study offered by a private training institution at any time.

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

             (a)  a cheque payable to the Newfoundland and Labrador 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;

             (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; and

              (f)  the security required under section 10.

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

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

             (a)  the security or evidence of the continuation of that security as required under section 10; and

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

             (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 and Labrador 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.

194/89 s4; 24/99 s3; 84/00 s2; 2001 c42 s45; 2010 c31 s16

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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

             (c)  the private training institution is not proposing to offer courses in accordance with the Act and the regulations.

             (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;

             (b)  where a keeper or operator of a private training institution ceases to operate the institution; or

             (c)  where the institution has not paid the money to the Private Training Corporation required under section 26.2.

             (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; 24/99 s4; 84/00 s3

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Advertisement

        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 and Labrador".

             (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; 2001 c42 s45

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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

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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

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Registration required

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

194/89 s10

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Security

      10. (1) In this section and in sections 10.01 and 10.02, "train-out" means a course of study undertaken by a student at a private training institution in substitution for a course of study the student was undertaking but had not finished at a private training institution that has closed or no longer offers the course of study.

             (2)  A private training institution shall obtain security 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.

             (3)  The maximum amount for the security

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

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

             (c)  as of January 1, 2001 shall be $150,000.

             (4)  Subsections (2) and (3) shall apply to a private training institution upon registration, re-registration or reinstatement of that private training institution.

             (5)  An applicant for one or more licences to provide one or more courses of study shall submit separate security for each campus at which the applicant intends to provide a course of study.

          (5.1)  Notwithstanding subsection (5), a satellite campus is not required to submit a separate security.

             (6)  Where the minister accepts as security a combination of a surety bond and an irrevocable letter of credit and that security is forfeited, the total amount of both the surety bond and the irrevocable letter of credit shall be distributed according to these regulations.

             (7)  For the purpose of claims referred to in subsection (9) every security shall continue in force and shall remain on deposit for a period of 2 years following the cancellation of the registration or the security.

             (8)  Where the security or the registration has been cancelled and the security has not been forfeited, the minister may,

                   (a) 2 years following the cancellation of the registration to which the security relates; or

                   (b) 2 years after the cancellation of the security,

deliver the security to the person bound under it and to the person who deposited that security.

             (9)  The security referred to in subsection (2) and (3) is forfeited and the amount of the security becomes due and payable as a debt to the Crown and the minister may call upon the surety company or financial institution to satisfy

             (a)  an amount owing to a student

                      (i)  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,

                     (ii)  where a registrant has been convicted of

                            (A)  an offence under the Act, or

                            (B)  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,

                    (iii)  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

                    (iv)  where during the 2 year period referred to subsection (7) the minister receives notice in writing of a claim against the registrant by or on behalf of a student in respect of a course of study or a contract for a course of study together with evidence satisfactory to the minister as to the validity of the claim or that legal proceedings have been commenced against the registrant; and

             (b)  an amount paid by the minister or the corporation to facilitate train-out of students of a closed private training institution including

                      (i)  money paid to other private training or educational institutions to replace tuition fees paid by a student to a private training institution for which services were not received before the closure of the institution or cancellation of the security or the registration, and

                     (ii)  money paid to other private training or educational institutions for costs incurred by those institutions to complete student training which was interrupted or terminated as a result of the closure of a private training institution.

          (9.1)  For the purpose of these regulations, the date of forfeiture of security is the date the minister calls upon the surety company or financial institution to satisfy the amounts payable under the security in accordance with subsection (9).

           (10)  Where the Crown becomes a creditor or a person in respect of a debt due the Crown arising from the provisions of subsection (9), the minister may take proceedings that 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.

84/00 s4; 87/04 s1; 10/11 s2

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Distribution of sufficient proceeds

10.01 (1) Where the proceeds of the security are sufficient to satisfy the total amount of all claims filed with the minister within the 6 month period from the date of forfeiture mentioned in subsection 10 (9.1), the superintendent shall distribute the proceeds of the security among the claimants as required by this section.

             (2)  Where

             (a)  a judgment based on a claim in respect of fees owing to a student under section 17 or 18 of these regulations is obtained by a student and filed with the minister;

             (b)  a judgment based on a claim in respect of a course of study or contract for a course of study is obtained by a student and filed with the minister; or

             (c)  the minister or the corporation provides evidence satisfactory to the superintendent as to the validity of a claim referred to in paragraph 10(9)(b)

the superintendent may, within 6 months of the date of forfeiture, pay over the money recovered under the security.

             (3)  A claim by a student under paragraphs (2)(a) and (b) shall include reasonable legal expenses incurred by the student to obtain judgment, as determined by the superintendent.

             (4)  Where proceeds remain after distribution under this section, the remainder shall be paid to the security company or the financial institution from which the security was obtained.

             (5)  This section applies to any security required under the Act or these regulations, including any security forfeited but not distributed at the time of the coming into force of this section.

87/04 s2

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Distribution of insufficient proceeds

10.02 (1)  Where the proceeds of the security are insufficient to satisfy the total amount of all claims filed with the minister within the 6 month period from the date of forfeiture mentioned in subsection 10(9.1), the superintendent shall distribute the proceeds of the security among the claimants as required by this section.

             (2)  Where the claimants to the proceeds of the security comprise

             (a)  students referred to in subparagraph 10(9)(a)(i) who are entitled to a repayment of fees under these regulations but whose entitlement did not arise upon the closure of a private training institution;

             (b)  students referred to in section 10.01 whose claim arose upon the closure of a private training institution and who did not participate in train-out facilitated by the corporation or the minister; or

             (c)  the corporation or the minister,

the proceeds shall be distributed in the following order of priority:

             (d)  firstly, proceeds shall be distributed proportionally among students based upon

                      (i)  the amount of repayment of fees owing to a student under section 17 or 18 of these regulations for which he or she has obtained judgment, or

                     (ii)  the amount of tuition fees each paid to a private training institution, including an institution that closed prior to the completion of a course of study by the student and an institution whose security or registration has been cancelled, for which he or she has obtained judgment;

             (e)  secondly, where proceeds remain after distribution under paragraph (d) and the minister or the corporation has provided evidence satisfactory to the superintendent as to the validity of the claim, those proceeds shall be distributed to the minister or the corporation to replace tuition fees paid by a student to a private training institution for services which the student did not receive before the closure of that institution or the cancellation of the security or the registration of the institution;

              (f)  thirdly, where proceeds remain after distribution under paragraph (e), those proceeds shall be distributed proportionally among students for claims for amounts, other than tuition fees, for which they have obtained judgment; and

             (g)  finally, where proceeds remain after distribution under paragraph (f) and the minister or the corporation has provided evidence satisfactory to the superintendent as to the validity of the claim, those proceeds shall be paid to the minister or the corporation for costs incurred by the minister or the corporation to facilitate the train-out of the students.

             (3)  A student who may receive a distribution of proceeds under paragraph (2)(f) shall also include a student who participated in train-out and who obtained judgment for a claim for amounts other than tuition fees.

             (4)  A claim by a student under paragraph (2)(d) or (f) or subsection (3) shall include reasonable legal expenses incurred by the student to obtain judgment, as determined by the superintendent.

             (5)  Where proceeds remain after distribution under this section, the remainder shall be paid to the security company or the financial institution from which the security was obtained.

84/00 s4; 87/04 s3

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Time limit

10.03 Only judgments of creditors that have become final before the expiration of the 6 month period from the date of forfeiture mentioned in section 10(9.1) shall be eligible to share in the proceeds of the security.

84/00 s4; 87/04 s4

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Payment into court

10.04 Notwithstanding section 10.03, the superintendent may pay to the Trial Division from the proceeds of the security an amount payable under these regulations to a creditor where a judgment has been obtained but has not become final before the expiration of the 6 month period from the date of forfeiture and that amount shall be held in trust for the creditor until the judgment becomes final.

84/00 s4

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Claims by students

10.05 Sections 10.03 and 10.04 apply to claims by students only.

84/00 s4

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Payment directly on student loan

10.06 (1) An amount a student is entitled to receive under section 10.01 or 10.02 shall

             (a)  firstly, be applied against a Newfoundland and Labrador student loan; and

             (b)  secondly, be applied against any other student loan

which the student has obtained from a financial institution in relation to a course of instruction that the student is unable to complete because of closure of the institution or cancellation of its security or registration.

             (2)  The superintendent shall pay the amount referred to in subsection (1) directly to the financial institution.

             (3)  Notwithstanding subsection (1), where a student has received proceeds of security for legal expenses incurred in obtaining a judgment under paragraph 10.02(2)(d), (f) or subsection 10.02(3), those proceeds shall first be paid to satisfy legal expenses allowed under paragraph 10.02(4).

84/00 s4

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Application of certain provisions

10.07 Paragraph 10(9)(b) and sections 10.01 to 10.06 apply to any security required under the Act and these regulations, including any security forfeited but not distributed at the time of the coming into force of this section.

84/00 s4; 49/03 s1

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Returns

   10.1 A private training institution shall, in the required form, make the returns and provide information to the superintendent that the minister may require.

77/98 s1

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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.

24/99 s6

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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

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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

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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

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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

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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

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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

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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

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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.

             (5)  Where a student withdraws from a course of instruction 21 days after the commencement of a semester, a private training institution may impose an administrative fee of 10% of that semester’s tuition, to a maximum of $500.

194/89 s19; 84/00 s5

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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

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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

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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

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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

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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

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Student record

   23.1 (1) A private training institution shall maintain a student record for each student who contracts for a course of instruction from that institution.

             (2)  A student shall, upon his or her request and at a reasonable time, have the right to review his or her student record.

             (3)  A student shall have the right to obtain a copy of his or her student record.

             (4)  A keeper, operator, receiver or other person responsible for the

             (a)  operation of a private training institution; or

             (b)  maintenance or storage of the student records of a private training institution,

shall, within 2 business days of a student or former student making a request for a copy of his or her student record, provide that student with that requested copy.

             (5)  Subsection (4) applies notwithstanding that a private training institution is not operating or has had its registration cancelled in accordance with section 5.

             (6)  A private training institute shall retain a student record for not fewer than 50 years after a student has completed or ceases his or her course of instruction with that institution.

             (7)  Where a private training institution ceases to operate or has its registration cancelled in accordance with section 5, the student records which have been maintained by that institution shall be transferred to the department within 14 days of ceasing operation or having that registration cancelled and a person may obtain his or her student record from the department in accordance with this section as if the department were the private training institution required to maintain that person's student record.

             (8)  This section applies notwithstanding a provision of a student contract for the taking of a course of instruction at a private training institution.

             (9)  For the purpose of this section, "student record" means a written or electronically stored record of academic and other information pertaining to a student established either before or after the coming into force of this section.

74/98 s1

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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

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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

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Verification of information

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

194/89 s27

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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

             (c)  any loans provided to the fund by the minister.

24/99 s7

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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.

             (4)  For the purpose of this section, where tuition fees are included in grant money received by an institution on behalf of a student, the superintendent shall determine that portion of the grant which shall be considered to be tuition fees.

             (5)  Notwithstanding paragraph 5(4)(c), where a private training institution fails to pay to the corporation the contribution required under this section, the minister may, in his or her discretion, revoke or limit the right of that institution to enrol new students.

24/99 s7; 84/00 s6

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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;

             (c)  to pay the expenses of administering and auditing the Train Out Fund; and

             (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).

24/99 s7

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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 .

24/99 s7

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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.

24/99 s7

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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.

24/99 s7

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Loans

   26.7 (1) The minister may make loans to the corporation to be deposited in the Train Out Fund, subject to terms as the minister considers appropriate, including

             (a)  the terms of repayment of a loan; and

             (b)  the rate of interest to be paid by the corporation

             (2)  The amount of a loan made to the corporation shall be paid out of the Consolidated Revenue Fund.

             (3)  This section shall be considered to come into force on November 1, 1999 and a loan made by the minister to the corporation after that date shall be considered to be made under this section.

34/00 s1

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Repeal

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