NC H327

Establishes Chapter 115F creating the North Carolina Proprietary School Licensure Act to regulate private vocational and postsecondary educational institutions offering programs below the associate degree level.

Creates a seven-member North Carolina Board of Proprietary Schools appointed by the Governor, President Pro Tempore of the Senate, and Speaker of the House, with powers to license schools, adopt rules, conduct inspections, and enforce standards for curriculum, facilities, faculty, and student protections.

Requires proprietary schools to obtain licenses, maintain guaranty bonds (minimum $25,000 for initial licensure), and pay assessments into a Student Protection Fund to protect students from loss of prepaid tuition if schools cease operations.

Establishes the Commercial Education Fund (supported by application and licensing fees) and Student Protection Fund (supported by school assessments based on annual gross tuition revenue) to administer the licensing program and compensate affected students.

Repeals Article 8 of Chapter 115D and makes operating an unlicensed proprietary school a Class 3 misdemeanor, with civil penalties up to $1,000 for violations and authorization for injunctive relief.