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RSNL1990 CHAPTER P-25

PRIVATE TRAINING INSTITUTIONS ACT

Amended:

1997 c13 s53; 1998 c33; 2004 c47 s30; 2006 c40 s14

CHAPTER P-25

AN ACT RESPECTING THE REGULATION OF PRIVATE TRAINING INSTITUTIONS

Analysis



Short title

        1. This Act may be cited as the Private Training Institutions Act.

1988 c16 s1

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Definitions

        2. In this Act

             (a)  "corporation" means the Private Training Corporation incorporated by this Act;

             (b)  "inspector" means a person appointed under section 13 as an inspector and includes the superintendent;

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

             (d)  "private training institution" means a facility used for the purpose of providing instruction or training in a vocation and a course of study whether by correspondence or home study course but does not include

                      (i)  the Memorial University of Newfoundland ,

                     (ii)  a facility operating under the Provincial Institutes Act or the Community Colleges Act,

                    (iii)  a school or correspondence course operated or provided by the government of a province or the Government of Canada,

                    (iv)  a school organized or operated for his or her employees by an employer,

                     (v)  a school board under the Schools Act, or

                    (vi)  a school or course exempted by the Lieutenant-Governor in Council;

             (e)  "superintendent" means the Superintendent of Private Training Institutions; and

              (f)  "vocation" means an employment, trade, calling or pursuit designated by the regulations as a vocation.

1988 c16 s2; 1990 c26 Sch B

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Superintendent

        3. The Lieutenant-Governor in Council shall appoint a Superintendent of Private Training Institutions, who shall exercise the powers and perform the duties conferred upon him or her under this Act.

1988 c16 s3

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Corporation established

        4. (1) There is incorporated a corporation to be known as the Private Training Corporation.

             (2)  The corporation is not a Crown corporation and is not an agent of the Crown.

             (3)  The board of directors of the corporation shall be appointed by the Lieutenant-Governor in Council and shall consist of no less than 5 and no more than 7 persons, and the membership of the board of directors may be prescribed by the Lieutenant-Governor in Council under paragraph 19(1)(v).

             (4)  The minister may designate one member of the board of directors as the chairperson and another as the vice-chairperson.

             (5)  A director shall not hold office for more than 3 consecutive years and is eligible for reappointment.

          (5.1)  A member of the board of directors appointed under this section whose term of office has expired shall continue to be a member of the board until he or she is reappointed or replaced and his or her decisions and actions as a director shall be considered to be valid.

             (6)  A majority of the directors, one of whom shall be the chairperson or vice-chairperson constitutes a quorum.

             (7)  Where a vacancy occurs on the board of directors, the minister may appoint a person to fill the vacancy for the balance of the term of the director replaced.

             (8)  A vacancy on the board of directors does not impair the capacity of the board of directors to act.

             (9)  The accounts of the corporation shall be audited at least once a year by an auditor appointed by the corporation.

           (10)  The corporation has, subject to this Act, all the rights, powers and privileges of a natural person.

1998 c33 s4; 2004 c47 s30

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Powers of corporation

        5. (1) The Private Training Corporation established under section 4 shall have the powers vested by law in a corporation.

             (2)  In addition to the powers referred to in subsection (1), the corporation may

             (a)  acquire assets and property both real and personal by purchase, lease, grant, hire, exchange or otherwise and dispose of that property;

             (b)  provide for the management of its property and effects and of its affairs and business;

             (c)  make by-laws concerning the meetings of the board and its transactions as approved by the minister;

             (d)  hold and administer those bank or trust accounts necessary for the administration of the Train Out Fund and the general operations of the corporation;

             (e)  invest the funds of the Train Out Fund in accordance with regulations made under paragraph 19(1)(z); and

              (f)  do all other matters and things including the employment of staff and other persons that may be necessary or desirable for exercising the powers conferred by this Act.

1998 c33 s4

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Duties of corporation

      5.1 The corporation shall

             (a)  administer the Train Out Fund established under section 17.1 in the manner that may be prescribed by the regulations;

             (b)  where required, make recommendations to the minister with respect to

                      (i)  the operation of this Act and the regulations,

                     (ii)  the financial stability of a private training institution based upon annual audited financial statements of that institution as required by the minister, and

                    (iii)  any other issues that the minister may require to be reviewed; and

             (c)  perform those other duties as required by the minister.

1998 c33 s4

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Insufficient funds - liability limited

      5.2 (1) The liability of the corporation with respect to the Train Out Fund is limited to the pay out of funds on deposit and the corporation has no other financial obligations with respect to the Train Out Fund.

             (2)  If there is insufficient money in the Train Out Fund to provide compensation as required by the regulations, the compensation provided shall

             (a)  not exceed the amount of money in the fund; and

             (b)  be provided on a proportional basis.

1998 c33 s4

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Registration required

        6. (1) A person shall not act as an agent of or maintain or operate a private training institution unless registered by the superintendent under this Act.

             (2)  An application for or renewal of registration shall be made to the superintendent in writing and shall be in the form and contain the particulars prescribed by the minister.

             (3)  An application for renewal of registration expires on December 31 in the year for which it is granted.

1988 c16 s6

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Agents

        7. (1) A person shall not

             (a)  hold himself or herself out as an agent of a private training institution kept or operated either inside or outside the province; or

             (b)  canvass, receive, take or solicit contracts for the purchase or sale of a course of study of a private training institution described in paragraph (a),

unless

             (c)  registered as an agent of a private training institution; and

             (d)  the person keeping or operating the private training institution is registered.

             (2)  A registered agent of a private training institution shall, when canvassing or soliciting, carry the certificate of registra­tion issued under section 8 and shall, upon the request of a person, produce the certificate for inspection.

             (3)  A person who violates this section is guilty of an offence and liable on summary conviction to a fine of not more than $250.

1988 c16 s7

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Certificate of registration

        8. (1) Where an applicant for registration or for renewal of registration of a private training institution

             (a)  complies with the requirements of the superintendent;

             (b)  satisfies the superintendent that the private training institution is provided with competent instructors and sufficient equipment for the teaching of a designated vocation; and

             (c)  is providing or is prepared to provide proper instruction in a vocation at reasonable rates,

the superintendent may register the applicant as the keeper or operator of a private training institution for the teaching of the designated vocation or may register the applicant as agent of a private training institution and may issue a certificate of registration accordingly.

             (2)  The superintendent may refuse to renew or may suspend or revoke a registration where the applicant does not comply with subsection (1), where the registrant is in breach of a term or condition of the registration, or upon other grounds as prescribed by the regulations.

             (3)  Where, before the expiry of a certificate, a registrant has applied for renewal of the registration and paid the prescribed fee, his or her registration shall be considered to continue

             (a)  until the renewal is granted; or

             (b)  until an appeal as prescribed by the regulations is conducted and concluded.

1988 c16 s8; 1998 c33 s3

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Rep. by 1998 c33 s4

        9. [Rep. by 1998 c33 s4]

1998 c33 s4

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Rep. by 1998 c33 s4

      10. [Rep. by 1998 c33 s4]

1998 c33 s4

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Further application

      11. A further application for registration may be made where material circumstances have changed.

1988 c16 s11

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Notice of changes

      12. A private training institution shall, within 5 days after the event, notify the superintendent in writing of a change in

             (a)  its address for service; and

             (b)  the officers or directors in the case of a corporation or of the members in the case of a partnership.

1988 c16 s12

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Inspection

      13. (1) An inspector may at reasonable times, where it is reasonably necessary to determine compliance with this Act

             (a)  enter and inspect a private training institution or an office of an agent of the private training institution;

             (b)  with respect to the business of being an agent, of operating a private training institution or providing correspondence courses, require the production of books, records or other documents and may examine them, make copies of them or remove them temporarily for the purpose of making copies;

             (c)  inspect and take samples of material, books, lessons and equipment used in providing instruction or training in a vocation and of work performed by persons receiving that instruction or training;

             (d)  require that a person offering correspondence courses provide to the inspector samples of material, books, lessons and equipment used in providing instruction or training in a vocation and of work performed by persons receiving that instruction or training;

             (e)  perform tests, take photographs or make recordings in a private training institution; and

              (f)  observe the instruction or training being provided in a private training institution.

             (2)  Where the minister believes on reasonable grounds that a person has contravened this Act or the regulations, an inspector may, with a warrant issued under subsection (3) at a reasonable time enter upon the premises of the private training institution or the office of an agent and may investigate, inquire into and examine the affairs of the private training institution and into the books, documents, correspondence and records in relation to the business.

             (3)  A Provincial Court judge who is satisfied by information upon oath or affirmation that there are reasonable grounds for believing that there is on the premises anything that there are reasonable grounds to believe will give evidence with respect to an offence under this Act may issue a warrant authorizing an inspector to enter and search those premises and to make the inquiries and copies of books, documents, correspondence and records that are considered necessary, subject to the conditions that may be specified in the warrant.

             (4)  The owner or person in charge of the premises referred to in this section and a person found there shall give an inspector reasonable help to enable the inspector to carry out his or her duties and functions under this section and shall provide the information that the inspector may reasonably require.

1988 c16 s13

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Order after inspection

      14. Where an inspector makes an inspection under section 13 and is of the opinion that this Act or the regulations are not being complied with, the inspector may in writing order the registrant to take corrective measures within the time limits prescribed in the order.

1988 c16 s14

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Goods or services of student

      15. A person who keeps or operates a private training institution shall not sell or permit to be sold to the public, the goods or services of a student of the private training institution, except where the actual occupational experience is a requirement of the training program.

1989 c12 s22

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Service

      16. (1) A notice or order required to be given under this Act is sufficiently given where delivered personally or sent by registered mail addressed to the person to whom delivery or service is required to be made at that person's last-known address.

             (2)  Where service is made by registered mail, the service shall be considered to be made on the 3rd day after the day of mailing unless the person on whom service is being made establishes that he or she did not through absence, accident, illness or other cause beyond his or her control receive the notice or order until a later date.

1988 c16 s16

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Rescission of contract

      17. A person who enters into a written contract with a private training institution in respect of a course of instruction may rescind the contract by delivering a notice personally or by registered mail addressed to the private training institution at the address shown in the contract within 2 days after the duplicate original copy of the contract first comes into the possession of the person and where the contract is rescinded, the person shall immediately return goods received under the contract and the private training institution shall return money received or realized in respect of the contract.

1988 c16 s17

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Train Out Fund

   17.1 (1) There is established a fund which shall be known as the Train Out Fund.

             (2)  The Train Out Fund shall be credited with those funds as prescribed by the regulations.

             (3)  A private training institute shall contribute to the Train Out Fund those funds derived from a percentage of the student tuition in the manner and at a rate prescribed by the regulations.

             (4)  The Train Out Fund may be used for those purposes prescribed by the regulations.

1998 c33 s5

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Statement as evidence

      18. (1) A statement as to

             (a)  the registration or non-registration of a person;

             (b)  the filing or non-filing of a document or material required or permitted to be filed with the superintendent;

             (c)  the time when the facts upon which proceedings are based first came to the knowledge of the superintendent; and

             (d)  other matters concerning the registration, non-registration, filing or non-filing,

purported to be certified by the superintendent is, without proof of the office or signature of the superintendent, receivable in evidence as proof of the facts stated in it in an action, proceeding or prosecution.

             (2)  A document under this Act purporting to be signed by the minister, or a certified copy of it, is receivable in evidence in an action, prosecution or other proceeding as proof that the document is signed by the minister without proof of the office or signature of the minister.

1988 c16 s18

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Regulations

      19. (1) The Lieutenant-Governor in Council may make regulations

             (a)  prescribing vocations to which this Act and regulations apply;

             (b)  exempting a vocation or class of private training institutions from this Act or the regulations;

             (c)  governing applications for registration or renewal of registration and prescribing terms and conditions of registration, including the manner in which and the procedures by which appeals with respect to registration or renewal of registration may be made;

             (d)  requiring the payment of fees on application for registration or renewal of registration;

             (e)  requiring registered private training institutions to be bonded in the form and terms and with the collateral security that is prescribed and providing for the forfeiture of bonds and the disposition of the proceeds;

              (f)  requiring and governing the books, accounts and records relating to compliance with this Act that shall be kept by private training institutions;

             (g)  requiring private training institutions to make returns and provide information to the superintendent;

             (h)  stipulating that information required to be provided or contained in a form or return shall be verified by affidavit;

              (i)  prescribing the accommodation and equipment required by private training institutions and the means of instruction to be used;

              (j)  requiring the approval of the superintendent for courses of study, requirements for admission, qualifications of teachers and demonstrators’ methods of instruction and premises and equipment used in connection with a private training institution;

             (k)  prescribing the minimum number of hours of instruction in a vocation that shall constitute a course of instruction in that vocation;

              (l)  prescribing the maximum fees that shall be paid or received for a course of instruction in a vocation;

            (m)  prescribing the terms and conditions upon which money paid for or on account of instruction in a private training institution shall be either retained by the payee or be repayable to the payor;

             (n)  prohibiting the use of advertising relating to a private training institution that may tend to mislead and requiring the discontinuing of a specified advertisement or means of advertisement by the owner of a private training institution;

             (o)  regulating the selling or offering for sale of a course of instruction offered by a private training institution;

             (p)  prescribing the amount that may be charged for the material used by or the services supplied to a student of a private training institution;

             (q)  providing that a certificate or other document as to the competency of a student shall not be issued by a private training institution unless the student has submitted to the examination that may be prescribed by the regulations;

              (r)  prescribing the nature of examinations for certificates of competency, the manner, times and places of holding the examinations and the persons who shall sit as examiners;

             (s)  prescribing the grounds upon which a certificate of registration may be refused renewal, suspended or revoked under section 8;

              (t)  prescribing any provisions which may be required to be included in a contract between a student and a private training institution;

             (u)  notwithstanding the Student Assistance Act or regulations, prescribing the terms and conditions which a private training institution shall meet or fulfill to be designated as an institution which offers student assistance;

             (v)  prescribing the membership of the board of directors of the corporation;

            (w)  prescribing the funds which shall be credited to the Train Out Fund and the purposes for which those funds may be used;

             (x)  prescribing the rate of student tuition for the contribution required to be paid by private institutions under subsection 17.1(3) and the manner in which those contributions shall be paid;

             (y)  prescribing the manner in which any loans made by the minister to the Train Out Fund may be made and the manner in which those loans may be repaid;

             (z)  prescribing the manner in which the funds administered by the corporation from the Train Out Fund may be invested;

           (aa)  with respect to the administration of the Train Out Fund generally; and

          (bb)  governing the conduct, operation and management of private training institutions.

             (2)  Regulations made under subsection (1) may be made with retroactive effect.

             (3)  Regulations made under this section may confer powers or impose duties on the minister with respect to matters dealt with in those regulations.

1998 c33 s6; 2006 c40 s14

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Fees and forms

   19.1 The minister may set fees and prescribe forms for the purpose and administration of this Act.

1997 c13 s53

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Offences

      20. (1) A person who

             (a)  knowingly provides false information in an application under this Act or the regulations or in a statement required to be provided under this Act or the regulations;

             (b)  fails to comply with an order, direction or other requirement made under this Act or the regulations;

             (c)  contravenes this Act or the regulations; or

             (d)  is a director or officer of a corporation and knowingly concurs in the providing, failure or contravention,

is guilty of an offence and on summary conviction is liable to a fine of not more than $1,000 or to imprisonment for a term of not more than 1 year, or to both a fine and imprisonment.

             (2)  The maximum penalty for a corporation convicted of an offence under subsection (1) is $25,000.

             (3)  A proceeding under paragraph (1)(a) shall not be started more than 1 year after the facts upon which the proceeding is based first came to the attention of the superintendent.

             (4)  A proceeding under paragraph (1)(b) or (c) shall not be started more than 2 years after the time when the subject matter of the proceeding arose.

1988 c16 s20