Title 13 Chapter 34 Section 107.5

Commerce and Trade
Utah Postsecondary Proprietary School Act
Section 107.5
Exemption certificate -- Application and renewal process.


13-34-107.5.   Exemption certificate -- Application and renewal process.

            (1) As used in this section:

            (a) "Exemption certificate" means an accredited institution certificate of exemption that complies with:

            (i) applicable rules made by the division under Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and

            (ii) this section.

            (b) "Exempt institution" means an institution that is exempt from this chapter under Subsection 13-34-105(1)(e) but required under 34 C.F.R. 600.9 to be legally authorized by a state.

            (2) (a) An institution wishing to be acknowledged as an exempt institution shall:

            (i) file with the division an application for an exemption certificate; and

            (ii) pay the division a fee established by the division.

            (b) An institution filing an application for an exemption certificate shall file a separate application and pay a separate fee for each physical campus that the institution operates.

            (3) An application under Subsection (2) shall:

            (a) be on a form approved by the division;

            (b) include proof of current accreditation from a regional or national accrediting agency recognized by the United States Department of Education;

            (c) include an identical copy of each financial statement the institution provides to its accrediting agency;

            (d) be verified by the oath or affirmation of the owner or a responsible officer of the institution filing the application; and

            (e) include a certification as to whether the institution or an owner, officer, director, or administrator of the institution has violated a law, federal regulation, or state rule as determined in a criminal, civil, or administrative proceeding.

            (4) (a) An exemption certificate is not transferrable.

            (b) If there is a change, as defined by the United States Department of Education, in the ownership or the governing body of an institution that, before the change, is an exempt institution, the institution shall file a new application under Subsection (2) within 30 days after the change.

            (5) (a) Except as provided in Subsections (4)(b) and (5)(b), an exemption certificate is effective for two years after its issuance.

            (b) For an exemption certificate that the division issues pursuant to an application the division receives during 2011, the division may extend the period for which the exemption certificate is effective by up to 11 months in order to ensure that renewal dates are appropriately staggered to allow the division to manage resources and work load.

            (6) No later than one year after the division's issuance or renewal of an exemption certificate to an institution, the institution shall:

            (a) submit a review, on a form approved by the division, of the institution's continued qualification for an exemption certificate; and

            (b) pay a fee that the division establishes under this section and Section 63J-1-504.

            (7) (a) The division shall, as provided in Section 63J-1-504, establish a graduated fee structure for the filing of an application for an exemption certificate under this section based on various classifications of institutions seeking to be an exempt institution.

            (b) A fee paid under this section is not refundable.

            (c) Fees paid under this section shall be deposited in the Commerce Service Account created in Section 13-1-2.

            (8) Except as provided in Section 13-34-113, the division may not refuse acceptance of an application under Subsection (2) that:

            (a) is tendered for filing and, based on the division's preliminary review, appears to comply with this section; and

            (b) is accompanied by the required fee.

            (9) (a) An exemption certificate is effective on the date it is issued.

            (b) The responsibility for compliance with the requirements for issuance of an exemption certificate is upon the institution and not upon the division.

            (10) (a) If it appears to the division that an institution is not in compliance with requirements to qualify for an exemption certificate, the division may advise the institution as to the apparent deficiencies.

            (b) After receiving notification from the division under Subsection (10)(a), an institution may file a new or amended application for an exemption certificate, accompanied by the required fee.

            (11) A person may not represent that the division's acceptance of any application for an exemption certificate under this section or the division's issuance of an exemption certificate constitutes an endorsement or approval of the institution by the division or the state.

Enacted by Chapter 221, 2011 General Session