CHAPTER 111

FORMERLY

HOUSE BILL NO. 214

AS AMENDED BY HOUSE AMENDMENT NOS. 3 AND 4 AND SENATE AMENDMENT NO. 1

AN ACT TO AMEND DELAWARE CODE, TITLE 14, CHAPTER B5 RELATING TO PRIVATE BUSINESS AND TRADE SCHOOLS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Delaware Code, Title 14, Subsection 8504, by adding

thereto new paragraphs (7)(a) and (b) to read as follows:

(a) If an institution admits as a regular student a person who does not have a high school diploma or its equivalent, the institution shall determine, at the time of admission, whether that person has the ability to benefit from the education or training the institution offers.

(a) An institution shall determine whether a person described in
paragraph (a) of this section has the requisite ability by administering to the person a nationally recognized, standardized, or industry developed test approved by the Secretary of the U.S. Department of Education and shall include the test and results in the student's permanent record file; or by providing evidence that an assessment of the person's basic skills and aptitudes has been conducted and that the assessment indicates that the person has the ability to benefit from the education or training the institution offers and shall include the method used and results in the student's permanent record file.

Section 2. Amend Delaware Code, Title 14, Subsection §8505 (a)(3), by

striking said subsection in its entirety and by substituting in lieu thereof the following:

(a)(3)(a) As a condition for granting certification each school must maintain a cancellation and settlement policy which must provide a full refund of all monies paid by a student if:

(1) the student cancels the enrollment agreement or contract within 72 hours (until midnight of the third day excluding Saturdays, Sundays, and legal holidays) after the enrollment contract is signed by the prospective student;

(2) the enrollment of the student was procured as the result of any misrepresentation in advertising, promotional materials of the school, or representations by the owner or representative of the school.

(b) As a condition for granting certification, each school must maintain a policy for the refund of the unused portion of tuition, fees, and other charges in the event the student, after expiration of the 72—hour cancellation privilege, fails to enter the course, or withdraws, or is discontinued therefrom at any time prior to completion, and such policy must provide:

(1) refunds for private business and trade school courses will be based on the period of enrollment computed on the basis of course time expressed in clock hours;

(2) the effective date of the termination for refund purposes in private business and trade schools will be the earliest of the following:

(A) the last date of attendance, if the student is terminated by the school;

(A) the date of receipt of written notice from the student;

(B) ten school days following the last date of attendance;

if tuition is collected in advance of entrance, and if, after expiration of the 72—hour cancellation privilege, the student does not enter the private business and trade school, not more than $100 shall be retained by the school;

(3) for the student who enters a private business and trade school course of not more that 12 months in length, terminates or withdraws, the school may retain $100 of tuition and fees and the minimum refund of the remaining tuition will be;

(A) After 0.01% enrollment time of the course, 80 percent of the remaining tuition;

After 5% to 9.9% enrollment time of
percent of the remaining tuition; the course, 70

After 10% to 14.9% enrollment time of
percent of the remaining tuition; the course, 60

After 15% to 24.9% enrollment time of
percent of the remaining tuition; the course, 55

(E) After 25% to 49.9 percent enrollment time of the course, 30 percent of the remaining tuition;

(F) After 50% or more enrollment time of the course, the student may be considered obligated for the full tuition.

Enrollment time is the time elapsed between the actual starting date and the date of the student's last day of physical attendance in the school.

(5) for private business and trade courses more than 12 months in length, the refund shall be applied to each 12—month period, or part thereof separately;

(6) refunds of items of extra expense to the student, such as instructional supplies, books, student activities, laboratory fees, service charges, where these items are separately stated and shown in the date furnished the student before enrollment, will be made in a reasonable manner acceptable to the administrator;

(7) refunds based on enrollment in private business and trade schools will be totally consummated within 30 days after the effective date of termination;

(8) refunds for correspondence courses will be computed on the basis of the number of lessons in the course;

(9) the effective date of the termination for refund purposes in correspondence courses will be the earliest of the following:

(A) the date of notification to the student if the student is terminated;

(B) the date of receipt of written notice from the student;

(C) the end of the third calendar month following the month in which the student's last lesson assignment was received unless notification has been received from the student that he wishes to remain enrolled;

(10) if tuition is collected before any lessons have been completed, and if, after expiration of the 72—hour cancellation privilege, the student fails to begin the course, not more that $50 shall be retained by the school;

(11) in cases of termination or withdrawal after the student has begun the correspondence course, the school may retain $50 of tuition and fees, and the minimum refund policy must provide that the student will be refunded the pro rata portion of the remaining tuition fees and other charges that the number of lessons completed and serviced by

the school bears to the total number of lessons in the course;

(12) refunds based on enrollment in correspondence schools will be totally consummated within 30 days after the effective date of termination.

(c) In lieu of the refund policy herein set forth, for programs of instruction not regularly offered to the general public, the State Board of Education may, for good cause shown, amend, modify, substitute and/or alter the terms of such policy due to the specialized nature and objective of the subject school's course of instruction.

(d) If a course of instruction is discontinued by the school and this prevents the student from completing the course, all tuition and fees paid are then due and refundable.

Section 3. Amend Delaware Code. Title 14, Subsection 8505(b) by adding a new paragraph to read as follows:

Surety bonds may only be cancelled during or at the end of any annual term by the bonding agency by giving 45 dais prior notice in writing by certified mail, return receipt requested, to the Administrator, Private Business and Trade School's, Vocational Division, State Department of Public Instruction, State of Delaware, P.O. Box 1402, Dover, Delaware 19903.

Section 4. Amend §8505(a)(4), Title 14, Delaware Code by deleting the time period "30 days" as it appears therein, and by inserting in lieu thereof the time period "72 hours".

Approved July 5, 1991.