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O. Reg. 279/02: CONSENTS UNDER THE ACT

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ONTARIO regulation 279/02

made under the

POST-SECONDARY EDUCATION CHOICE
AND EXCELLENCE ACT, 2000

Made: September 26, 2002
Filed: September 30, 2002
Printed in The Ontario Gazette: October 19, 2002

cONSENTS under the Act

part i
Interpretation

Interpretation

1. (1) In this Regulation,

“authorized issuer or guarantor” means,

(a) Canada, Ontario or another province of Canada,

(b) a municipality in Canada,

(c) an agency of the Government of Canada or a province of Canada,

(d) a bank or financial institution that is supervised or examined by the central bank of Canada or another governmental authority in Canada, or

(e) a school authority as defined in subsection 1 (1) of the Education Act;

“private institution” means a person who is not a public institution;

“public institution” means a person who,

(a) receives regular and ongoing operating funds from a government for the purpose of providing post-secondary education,

(b) is governed by a body the majority of whose members are appointed by elected or government-appointed officials, or

(c) is listed in the Schedule to this Regulation;

“trust fund” means a trust fund described in section 10;

“tuition fee”, in respect of a period of study for which a student is registered, means the total mandatory cost charged to the student by the applicable private institution for the program and period for which the student is registered.

“unearned tuition fee” means unearned tuition fee as described in section 9.

(2) A reference in this Regulation to a program means a reference to a whole program or any part of a program. 

part ii
public institutions

Prerequisite for Consent

Accessibility of transcripts

2. (1) A public institution seeking a consent for a program shall make the arrangements described in this section to ensure that students in the program have access to their transcripts.

(2) Information to be included in a student’s transcript must remain available for at least 75 years.

(3) A copy of the information to be included in each student’s transcript must be kept at a location other than the applicable campus and the information must be transferred to that location at least weekly.

Conditions That Apply To Consents

Transcript standards

3. (1) A public institution that has a consent for a program shall ensure that the institution meets the accessibility requirements described in section 2 for transcripts.

(2) A student’s transcript must contain at least the following information:

1. Information that identifies the student.

2. The basis on which the student was admitted to the institution.

3. The student’s academic history at the institution.

4. Any academic awards and honours given to the student by the institution.

5. Any academic actions taken against the student by the institution.

6. The degree, if any, awarded to the student and the date on which it was conferred.

(3) A transcript certified by an official of the institution as true and accurate and that has the official seal of the institution is an official transcript.

(4) The person who has the consent shall notify the Minister if there is a change in the location at which a copy of the information to be included in students’ transcripts is maintained.

part iii
private institutions

Prerequisites for Consent

Accessibility of transcripts

4. (1) A private institution seeking a consent for a program shall make the arrangements described in this section to ensure that students in the program have access to their transcripts.

(2) Information to be included in a student’s transcript must remain available for at least 75 years.

(3) A copy of the information to be included in each student’s transcript must be kept at a location other than the applicable campus and the information must be transferred to that location at least weekly.

Security required in conjunction with an application

5. (1) A private institution seeking a consent for a program shall give security relating to the program that meets the requirements described in this Regulation.

(2) The security is to be made payable to the Crown and must be in the form of a note, bond, debenture or other evidence of indebtedness issued or guaranteed by an authorized issuer or guarantor.

(3) The security must meet the following specifications:

1. Before the consent is given and while the consent is in effect, the authorized issuer or guarantor is not entitled to cancel the security before it expires unless,

i. the authorized issuer or guarantor gives at least two months’ written notice to the Minister and to the private institution that the authorized issuer or guarantor wishes to cancel it, and

ii.  the Minister gives the authorized issuer or guarantor a written permission to do so, specifying the date on or after which the security may be cancelled.

2. The amount of the security becomes payable to the Crown upon the written direction of the Minister.

3. The Minister may give such a direction while the security is in effect or within two years after the security expires or is cancelled.

(4) The amount of security given must be the greater of “A” or “B” where,

“A” is $150,000 for each program for which the private institution has consent, and

“B” is the amount described in subsection (5) for a private institution that provided the program in the preceding fiscal year and the amount described in subsection (6) for any other private institution.

(5) If the private institution provided the program in the preceding fiscal year, the amount of “B” is determined as follows.

1. If the private institution does not require students registered in the program to prepay any of their tuition fees, “B” is zero.

2. If the private institution requires students registered in the program to prepay 25 per cent or less of their tuition fees for the period for which they are registered, “B” is determined as follows: 

i. For each month of the preceding fiscal year, calculate the amount of the prepaid tuition fees for the program that constituted unearned tuition fee revenue for the institution on the first day of the month.

ii. Identify the date on which the amount of the prepaid tuition fees that constituted unearned tuition fee revenue for the institution was the highest.

iii. “B” is the amount of the prepaid tuition fees that constituted unearned tuition fee revenue on the date identified in subparagraph ii.

3. If the private institution requires students registered in the program to prepay more than 25 per cent of their tuition fees for the period for which they are registered, “B” is determined as follows:

i. Take the steps described in subparagraphs 2 i and ii.

ii. “B” is 25 per cent of the amount of the prepaid tuition fees that constituted unearned tuition fee revenue on the date identified in subparagraph 2 ii.

(6) If the private institution did not provide the program in the preceding fiscal year, the amount of “B” is determined as follows.

1. If the private institution will not require students registered in the program to prepay any of their tuition fees, “B” is zero.

2. If the private institution will require students registered in the program to prepay 25 per cent or less of their tuition fees for the period for which they are registered, “B” is determined as follows: 

i. For each month of the first fiscal year in which the program will be offered, calculate the amount of the prepaid tuition fees reasonably expected for the program that will constitute unearned tuition fee revenue for the institution on the first day of the month.

ii. Identify the date on which the amount of the prepaid tuition fees reasonably expected for the program that will constitute unearned tuition fee revenue for the institution is the highest.

iii. “B” is the amount of the prepaid tuition fees reasonably expected for the program that will constitute unearned tuition fee revenue on the date identified in subparagraph ii.

3. If the private institution will require students registered in the program to prepay more than 25 per cent of their tuition fees for the period for which they are registered, “B” is determined as follows:

i. Take the steps described in subparagraphs 2 i and ii.

ii. “B” is 25 per cent of the amount of the prepaid tuition fees reasonably expected for the program that will constitute unearned tuition fee revenue on the date identified in subparagraph 2 ii.

Conditions That Apply To Consents

Transcript standards

6. (1) A private institution that has a consent for a program shall ensure that the institution meets the accessibility requirements described in section 4 for transcripts.

(2) A student’s transcript must contain at least the following information:

1. Information that identifies the student.

2. The basis on which the student was admitted to the institution.

3. The student’s academic history at the institution.

4. Any academic awards and honours given to the student by the institution.

5. Any academic actions taken against the student by the institution.

6. The degree, if any, awarded to the student and the date on which it was conferred.

(3) A transcript certified by an official of the institution as true and accurate and that has the official seal of the institution is an official transcript.

(4) The person who has the consent shall notify the Minister if there is a change in the location at which a copy of the information to be included in students’ transcripts is maintained.

Limitation

7. A private institution that has a consent for a program shall not collect more than 12 months of tuition fees in any 12-month period from any student registered in the program. 

Refund of tuition fees

8. (1) A private institution shall ensure that all tuition fees for a program for the period for which a student has registered are promptly refunded to the student,

(a) if he or she gives written notice to the institution within two days after signing a registration agreement that he or she rescinds the agreement; or

(b) if the program is discontinued before the first day.

(2) A private institution shall ensure that all tuition fees for a program for the period for which a student has registered, less an administrative fee of a maximum of $500, are promptly refunded to the student,

(a) if he or she gives the institution written notice that he or she does not intend to begin the program; or

(b) if he or she does not attend the first ten consecutive days of the program.

(3) A private institution shall ensure that unearned tuition fees, for the program for the period for which a student has registered, less an administrative fee of a maximum of $500, are promptly refunded to the student,

(a) if he or she withdraws from the program before one-half of it has been completed; or

(b) if the program is discontinued or suspended for any reason.

(4) A refund required by this section is payable as follows:

1. The private institution shall arrange for the trustee to pay to the student the amount to which the student is entitled under this section from the amount, if any, of the unearned tuition fees held in the fund for benefit of the student.

2. The private institution shall pay to the student the balance of the amount to which he or she is entitled under this section.

(5) Despite subsection (4), a refund required by this section may be paid in total to the student by the private institution and, if it does so,  the private institution is entitled to be paid the amount held in the trust fund for the benefit of the student in respect of unearned tuition fees.

(6) Despite subsection (4), if the amount of unearned tuition fees held by a private institution in respect of a student who is entitled to a refund under this section is insufficient to cover the administrative fee authorized under subsection (2) or (3), the deficiency may be deducted from the unearned tuition fees held in trust for the benefit of the student and paid to the institution from the trust fund.

(7) This section applies only with respect to a program for which a private institution has a consent.

Unearned tuition fees

9. (1) For the purposes of this Regulation, an unearned tuition fee is any prepaid tuition fee collected from a currently enrolled student for the study period in which the student is registered but not yet earned by the consent holder because the program has not yet been delivered.

(2) The study period described in subsection (1) ends on the later of the date of the final examination or the last day of classes.

Trust fund for unearned tuition fee revenue

10. (1) A private institution shall ensure that the requirements set out in this section with respect to trust funds are met.

(2) If a private institution requires students to prepay more than 25 per cent of the tuition fees for a program for the period for which they are registered, the institution shall establish and maintain one or more trust funds for the purposes of this section.

(3) The private institution shall deposit into its trust fund or funds the amount of the prepaid tuition fees that exceeds 25 per cent of the tuition fees for programs for which students are registered.

(4) As a private institution earns the prepaid tuition fee revenue for the program for which students are registered, the private institution may withdraw an amount from the trust fund consistent with maintaining a minimum of 75 percent of unearned tuition fees in the trust fund.

(5) The amount that a private institution earns in any month in respect of a tuition fee is calculated by dividing the total tuition fee of a student for the period of study by the number of months in the period of study, subject to the following:

1. The period of study shall not exceed 12 months.

2. The period of study shall be expressed in months, rounded to the nearest quarter.

3. Withdrawals of earned tuition fee revenue from the trust may take place not more than once a month.

(6) While unearned tuition fees are held in the trust fund, they are held for the benefit of the students whose prepaid tuition fees are held in the fund.

(7) The trust fund must be maintained in Ontario at a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada), a credit union within the meaning of the Credit Unions and Caisses Populaires Act, 1994, a loan corporation or a trust corporation, both as defined in the Loan and Trust Corporations Act.

(8) The trustee of the trust fund must be the bank, credit union, loan corporation or trust corporation, as the case may be.

(9) If a student is entitled to and has made a demand in writing for a tuition fee refund under section 8 and the private institution has not paid the amount of the refund within 30 days of the demand or arranged for the trustee to pay the amount of the refund within that period, the student may apply to the trustee to have the refund directly paid to him or her out of the unearned tuition fee held in trust for that student.

(10) This section applies only with respect to a program for which a private institution has a consent.

Security required during the term of a consent

11. (1) A private institution that has a consent for a program shall maintain security relating to the program that meets the requirements described in section 5.

(2) The private institution shall review the amount of the security every fiscal year to ensure that it continues to meet the requirements described in section 5.

Forfeiture of security

12. In any of the following circumstances, the Minister is authorized to direct the authorized issuer or guarantor of security maintained by a private institution as required by section 11 to pay the amount of the security to the Crown:

1. The private institution is convicted of an offence under the Act or under the Ministry of Training, Colleges and Universities Act.

2. The private institution is convicted of an offence under the Criminal Code (Canada) involving fraud or theft, or an offence under the Code of conspiracy to commit an offence involving fraud or theft, and the conviction has become final.

3. Proceedings by or in respect of the private institution have been taken under the Bankruptcy and Insolvency Act (Canada), including a consumer proposal.

4. Proceedings have been taken by way of winding up the private institution.

5. A receiving order under the Bankruptcy and Insolvency Act (Canada) or a winding up order has been made against the private institution, and the order has become final.

6. Proceedings against the private institution have been commenced by or on behalf of a student with respect to a refund of tuition fees for a program for which the student has paid fees.

7. The Minister is satisfied that a student has a claim against the private institution with respect to a program or with respect to his or her refund of tuition fees for such program.

Schedule

1.  Assumption University.

2.  Brescia University College.

3.  Canterbury College.

4.  Concordia Lutheran Seminary.

5.  Conrad Grebel University College.

6.  Emmanuel College.

7.  Holy Redeemer College.

8.  Huntington University.

9.  Huron University College.

10.  Iona College.

11.  King’s College and St. Peter’s Seminary.

12.  Knox College.

13.  McMaster Divinity College.

14.  Queen’s Theological College.

15.  Regis College.

16.  Renison College.

17.  St. Augustine’s Seminary.

18.  St. Jerome’s University.

19.  St. Paul’s University.

20.  St. Paul’s United College.

21.  Thorneloe University.

22.  University of St. Michael’s College.

23.  University of Sudbury.

24.  University of Trinity College.

25.  Victoria University.

26.  Waterloo Lutheran Seminary.

27.  Wycliffe College.

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