North Carolina Proprietary School Licensure Act Summary

• Repeals Article 8 of Chapter 115D and establishes new Chapter 115F creating the North Carolina Proprietary School Licensure Act to regulate proprietary schools offering vocational programs below the associate degree level.

• Establishes a 7-member North Carolina Board of Proprietary Schools appointed by the Governor and General Assembly, with authority to license schools, set standards, conduct inspections, and enforce compliance through civil penalties up to $1,000.

• Requires proprietary schools to obtain licenses, maintain surety bonds (minimum $25,000), file course outlines and school bulletins, comply with refund policies (full refund if withdrawal before first day of class or 75% within first 25% of enrollment period), and meet facility and instructor qualifications.

• Creates the Commercial Education Fund from application and license fees (initial license $3,520 plus $55 per program; annual renewal $1,870 plus $55 per program and $220 per new program) and the Student Protection Fund supported by annual assessments based on gross tuition revenue to compensate students for losses due to school closure or license suspension.

• Establishes penalties for operating without a license or bond (Class 3 misdemeanor with separate offense for each day of operation) and authorizes injunctive relief and enforcement actions by the Board.