1998/99 Legislative Session: 3rd Session, 36th Parliament
THIRD READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


Certified correct as passed Third Reading on the 29th day of June, 1999
Ian D. Izard, Law Clerk


HONOURABLE ANDREW PETTER
MINISTER OF ADVANCED EDUCATION, TRAINING AND TECHNOLOGY
AND MINISTER OF INTERGOVERNMENTAL RELATIONS


BILL 73 -- 1999

PRIVATE POST-SECONDARY EDUCATION
AMENDMENT ACT, 1999

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 of the Private Post-Secondary Education Act, R.S.B.C. 1996, c. 375, is amended

(a) by adding the following definition:

"fund" means the Tuition Assurance Fund established under section 27.1; , and

(b) by repealing the definition of "institution" and substituting the following:

"institution" means a person who provides or intends to provide post-secondary education, and includes, for the purposes of sections 4, 27.3, 27.4 (1) (b) and 31, a person who provided post-secondary education; .

2 Section 3 is amended

(a) in subsection (5) by striking out "and 23." and substituting ", 23 and 27.1 (3) and (5).", and

(b) by adding the following subsection:

(7) The commission has the power, privileges and protection of a commissioner under sections 12, 15 and 16 of the Inquiry Act for the purposes of

(a) hearing and deciding claims under section 27.4 of this Act, and

(b) investigating a matter under section 36 (6) of this Act.

3 Section 4 is amended

(a) in subsection (2) by repealing paragraphs (a) and (b) and substituting the following:

(a) for the purposes of conducting an examination or evaluation or both, enter

(i) any building that is used in the operation of an institution, or

(ii) any building that was used in the operation of an institution, if the executive director or the examiner has reasonable and probable grounds to believe that records relating to the operation or administration of the institution are in the building;

(b) examine and make copies of any record of an institution relating to its operation or administration, whether or not the institution has ceased to operate; , and

(b) by adding the following subsections:

(2.1) If all or part of a building referred to in subsection (2) (a) is used as living accommodation, the authority given by that subsection must not be used to enter that building or that part of the building, as the case may be, except

(a) with the consent of the occupant and for the purposes of examining records relating to the operation or administration of the institution, or

(b) with the authority of a warrant issued by the Supreme Court on application by the commission and on being satisfied that there are reasonable and probable grounds to believe that records referred to in paragraph (a) are in that building or that part of the building, as the case may be.

(2.2) A person must not hinder, obstruct, impede or otherwise interfere with a person who is exercising authority under subsection (2).

(2.3) Whether or not the institution has ceased to operate, the executive director may request any of the following to supply the executive director with copies of records relating to its operation or administration:

(a) the institution;

(b) an officer or director of the institution;

(c) a receiver, receiver manager, liquidator or trustee in bankruptcy of the institution.

(2.4) A person to whom a request is made under subsection (2.3) and who is in possession or control of records specified in the request must promptly comply with the request.

4 Section 6 (1) (a) is repealed and the following substituted:

(a) if required by the executive director, security in a form and amount satisfactory to the executive director, .

5 Section 19 (2) is repealed and the following substituted:

(2) An institution must pay all the costs, as determined by the commission, of the following:

(a) an investigation under this section, including the costs of an accreditation team if one is appointed to investigate;

(b) any re-examination under section 4, if the executive director considers it necessary for the purposes of auditing compliance with section 27.2 to do more than one examination during the term of a registration.

6 Section 24 is amended by renumbering the section as section 24 (1) and by adding the following subsection:

(2) The report submitted under subsection (1) (b) must include a financial report on the operation of the fund.

7 The following sections are added:

Establishment and administration of Tuition Assurance Fund

27.1 (1) The Tuition Assurance Fund is established.

(2) The fund consists of the following:

(a) payments made to the fund under section 27.2 or 27.6;

(b) money that becomes part of the fund under section 27.7;

(c) any additional source of revenue prescribed for the purpose of this section;

(d) interest on money deposited in the fund and any earnings of investments made under subsection (5) of this section.

(3) The commission must administer the fund.

(4) Money paid into the fund, or received by the commission for the fund,

(a) must be held in trust by the commission for the purposes listed in section 27.3,

(b) must be accounted for separately from other money of the commission, and

(c) is not subject to any process of seizure or attachment by any creditor of the commission.

(5) The fund may be invested by the commission, but only in the manner authorized by the Trustee Act.

Payments by institutions to the fund

27.2 An institution registered under this Act must make payments to the fund through the commission at the times and in the amounts required by the regulations.

Payments from the fund

27.3 Subject to the regulations, the commission may authorize payments to be made from the fund for the following purposes:

(a) refunding the tuition fees of a student if an institution registered under this Act ceases to operate or for any other reason ceases to provide the program for which the fees were paid;

(b) paying costs incurred by the commission in administering the fund, including the costs of

(i) investigating and processing claims against the fund,

(ii) ensuring that claims can be met, and

(iii) recovering money paid in respect of a claim.

Claims against the fund

27.4 (1) A claim against the fund must

(a) comply with the regulations, and

(b) be filed with the commission within one year after the institution to which the claim relates ceases to operate or for any other reason ceases to provide the program for which the tuition fees were paid.

(2) The commission may do one or more of the following:

(a) require that information in a claim be verified by a statutory declaration;

(b) receive and examine evidence and information on oath or affirmation, by affidavit or otherwise as it considers proper, whether or not the evidence is admissible in court;

(c) examine records and make inquiries that it considers necessary;

(d) authorize persons to administer oaths and affirmations, exercise the powers of the commission under paragraphs (a) to (c) and report the findings to the commission.

(3) The commission has exclusive jurisdiction to hear and decide claims against the fund.

(4) A decision, order or ruling of the commission made under this Act in respect of a matter that relates to the fund and that is within the commission's jurisdiction is final and conclusive and is not open to question or review in court except on a question of law or excess of jurisdiction.

(5) Despite subsection (4), the commission may reconsider its own decisions.

(6) The commission may prorate payments among claimants if the fund is insufficient to pay all claims.

Assignment of rights to the commission

27.5 Payments must not be made from the fund unless the claimant has assigned to the commission all the rights in respect of the loss that gave rise to the claim.

Repayment of money received from the fund

27.6 (1) If money is paid from the fund to a claimant, the claimant must pay to the fund any money or the value of any other thing received by the claimant from another source on account of the loss that gave rise to the claim.

(2) If the claimant fails to comply with subsection (1), the commission has a cause of action against the claimant for the amount unpaid.

Money recovered belongs to the fund

27.7 Money recovered by the commission under this Act in respect of a claim against the fund is part of the fund, but the commission may pay all or part of the money to the claimant after deducting

(a) the amount paid out of the fund in respect of the claim, and

(b) any costs of recovery, including actual legal costs.

8 Section 35 (2) (a) is amended by striking out "section 5, 27," and substituting "section 4 (2.2) or (2.4), 5, 27, 27.2, 27.6 (1),".

9 Section 36 is amended

(a) in subsection (2) by repealing paragraphs (a) and (d) and substituting the following:

(a) the requirements to be met by institutions seeking registration or renewal of registration, including requirements regarding the provision of security by specified classes of institutions;

(d) statements, information or verification that must be supplied by an institution and the person to whom, and the circumstances in which, the statements, information or verification must be supplied; ,

(b) in subsection (2) by adding the following paragraphs:

(f) additional sources of revenue for the fund;

(g) the payments, whether flat rate or graduated according to an assessment of risk or otherwise, to be made by registered institutions to the fund and the times when those payments become due;

(h) the exemption of classes of registered institutions from the requirement to make payments to the fund and the conditions of exemption;

(i) the persons who may make, and the procedure for making, claims against the fund;

(j) the procedure for hearing and deciding claims against the fund;

(k) the persons to whom payments may be made under section 27.3 (a) and the maximum amount payable by the commission in respect of a claim. ,

(c) by repealing subsection (3) and substituting the following subsections:

(3) The minister may prescribe different security requirements under subsection (2) (a), different fees under subsection (2) (b) and different amounts and times under subsection (2) (g) for different classes of institutions.

(3.1) A regulation under subsection (2) (a) may impose security requirements on a class of institutions even though institutions of that class are required to contribute to the fund. , and

(d) in subsection (6) by striking out everything after "this Act applies".

Commencement

10 This Act comes into force by regulation of the Lieutenant Governor in Council.


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