O. Reg. 467/16: TRAINING COMPLETION ASSURANCE FUND AND OTHER FINANCIAL MATTERS
Skip to contentontario regulation 467/16
made under the
Private Career Colleges Act, 2005
Made: December 14, 2016
Filed: December 16, 2016
Published on e-Laws: December 16, 2016
Printed in The Ontario Gazette: December 31, 2016
Amending O. Reg. 414/06
(TRAINING COMPLETION ASSURANCE FUND AND OTHER FINANCIAL MATTERS)
1. (1) The definition of “unearned fee” in subsection 1 (1) of Ontario Regulation 414/06 is revoked.
(2) Section 1 of the Regulation is amended by adding the following subsection:
(3) In this Regulation, a fee that is paid by a student to a private career college in respect of a vocational program or part of a program is considered to be earned or unearned, as follows:
1. The fee is earned on a program or part of a program as the private career college provides the program or part to the student.
2. The fee is unearned in respect of a program or part of a program that the private career college has not provided to the student.
2. Paragraph 1 of section 9 of the Regulation is amended by adding “and the amount of rebates of premiums, surcharges and levies to be paid to private career colleges” at the end.
3. (1) Paragraph 1 of subsection 11 (2) of the Regulation is amended by striking out “sections 13, 14 and”.
(2) Paragraph 2 of subsection 11 (2) of the Regulation is amended by striking out “sections 16 and 24” and substituting “section 24”.
4. Subsection 12 (2) of the Regulation is revoked.
5. Sections 13, 14, 15 and 16 of the Regulation are revoked.
6. (1) Paragraph 1 of subsection 18 (3) of the Regulation is amended by striking out “and (6)”.
(2) Subsection 18 (3) of the Regulation is amended by adding the following paragraph:
6. To pay for rebates under section 31.
(3) Subsection 18 (6) of the Regulation is revoked.
7. (1) Section 22 of the Regulation is amended by striking out “Subject to section 31” at the beginning of the portion before clause (a).
(2) Clauses 22 (a) and (b) of the Regulation are revoked.
8. Subsection 25 (1) of the Regulation is amended by striking out “Subject to section 31” at the beginning.
9. (1) Subsection 26 (1) of the Regulation is revoked.
(2) The definition of “B” in subsection 26 (3) of the Regulation is revoked and the following substituted:
“B” is the private career college’s highest monthly unearned fee balance during the college’s most recent fiscal year that ended before the day the annual premium is assessed.
(3) Subsection 26 (5) of the Regulation is revoked and the following substituted:
(5) For the purposes of the formula in clause (3) (b), a private career college’s unearned fee balance for any given month in the college’s fiscal year is determined as follows:
1. Determine the portion of any fees collected in respect of vocational programs in previous months that remains unearned at the beginning of the month.
2. Add to the amount determined under paragraph 1 the amount of any fees collected during the month that is unearned at the end of the month.
3. Subtract from the sum determined under paragraph 2 the portion of the fees referred to in paragraphs 1 and 2 that is earned by the private career college during the month.
10. (1) Section 27 of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:
Prorated amounts of premium surcharges and subsequent annual premiums
27. If a private career college is required to pay an initial annual premium in a second or third registration period under subsection 25 (5), the Superintendent shall determine the premium surcharge payable under section 28 or the annual premium payable under section 26 in accordance with the following rules:
. . . . .
(2) Paragraph 2 of section 27 of the Regulation is revoked and the following substituted:
2. The premium surcharge is determined by calculating the amount of the surcharge in accordance with subsection 28 (3) based on the annual premium calculated in accordance with subparagraph 1 ii of this section.
11. Section 28 of the Regulation is revoked and the following substituted:
Premium surcharge
28. (1) If, at the end of one of the Fund’s fiscal years, the value of the Fund is less than the target balance determined under subsection (2),
(a) the Superintendent shall, during the Fund’s next fiscal year, give notice of a premium surcharge to every private career college, together with the notice of annual premium sent under section 23; and
(b) every private career college shall pay the premium surcharge in accordance with this section, in addition to the annual premium payable under section 26.
(2) The Fund’s target balance shall be determined as follows:
1. For each private career college, take the highest monthly unearned fee balance determined under subsection 26 (5) for the Fund’s most recent fiscal year for which information is available.
2. Find the sum of the amounts determined under paragraph 1 for all private career colleges.
3. Take 17.5 per cent of the number under paragraph 2.
(3) The Superintendent shall determine the amount of a premium surcharge payable by a private career college by multiplying the amount of the college’s annual premium determined in accordance with section 26 or 27, by the number determined under subsection (4) of this section.
(4) The number referred to in subsection (3) shall be the number set out in Column 2 of the Table to this subsection opposite the percentage of the target balance, as set out in Column 1 of the Table, that the value of the Fund was at the end of the Fund’s previous fiscal year referred to in subsection (2).
Table
|
Column 1 Percentage |
Column 2 Number |
|
A percentage that is at least 75 per cent of the target balance |
3 |
|
A percentage that is at least 50 per cent but less than 75 per cent |
4 |
|
A percentage that is at least 25 per cent but less than 50 per cent |
5 |
|
A percentage that is less than 25 per cent |
6 |
12. (1) Subsection 29 (1) of the Regulation is revoked.
(2) Subsection 29 (2) of the Regulation is amended by striking out “Subject to section 31” at the beginning.
(3) Clause 29 (2) (a) of the Regulation is revoked and the following substituted:
(a) the value of the Fund falls below 50 per cent of the target balance determined under subsection 28 (2); and
(4) Subsection 29 (3) of the Regulation is amended by striking out “14”.
(5) Subsection 29 (4) of the Regulation is revoked.
13. Section 31 of the Regulation is revoked and the following substituted:
Rebates
31. (1) The Superintendent may direct that a rebate on any premium, surcharge or levy required under this Regulation be paid out of the Fund if,
(a) the value of the Fund is more than 110 per cent of the target balance determined under subsection 28 (2); and
(b) the Superintendent has reasonable grounds to believe that the money in the Fund or to be paid into the Fund will be sufficient to meet the other projected payments out of the Fund in accordance with section 18.
(2) The Superintendent may give notice of a rebate at any time during a fiscal year of the Fund, and the rebate shall be paid to all private career colleges that are eligible for it.
(3) A private career college is eligible for the rebate if it is registered under the Act on the date of the notice of rebate.
(4) The amount of a rebate for a private career college shall be calculated as follows:
1. Determine the total amount of all payments made into the Fund under sections 24, 26, 28 and 29 over the preceding 10 years by the private career college.
2. Divide the sum obtained under paragraph 1 by the total amount of all payments made into the Fund under sections 24, 26, 28 and 29 over the preceding 10 years by all eligible private career colleges.
3. Multiply the quotient obtained under paragraph 2 by the amount available for rebate as determined under paragraph 4.
4. The amount available for rebate is the amount by which the Fund exceeds 100 per cent of the target balance determined under subsection 28 (2), or such lesser amount as is determined by the Superintendent.
(5) In determining whether to issue a rebate, the Superintendent shall consult with the Board.
(6) The Superintendent shall determine the lesser amount referred to in paragraph 4 of subsection (4) and the amount of a rebate to be paid to all private career colleges, taking into account the following factors:
1. The amount of any increase in the value of the Fund.
2. The projected amounts to be paid out of the Fund under Part VI over the 12-month period that follows the date the rebate is issued.
3. The effect that the rebate will have on the private career college sector.
14. (1) Subsection 33 (1) of the Regulation is amended by striking out “subsections (4), (6) and (7)” in the portion before clause (a) and substituting “subsection (6)”.
(2) Subsection 33 (3) of the Regulation is revoked and the following substituted:
(3) For the purposes of subclause (1) (b) (ii), the amount shall be equal to 25 per cent of the private career college’s highest monthly unearned fee balance during the college’s last fiscal year that ended before the application for renewal is made, as set out in the college’s financial statements for that fiscal year.
(3) Subsection 33 (4) of the Regulation is revoked and the following substituted:
(4) If this subsection, as it read on December 31, 2016, required an applicant to provide security in the amount of $3,000,000 and the amount determined under subsection (2) or (3) is greater than $3,000,000, the applicant shall provide the Superintendent with the difference on or before June 30, 2017.
(4) Subsection 33 (5) of the Regulation is revoked and the following substituted:
(5) For the purposes of subsection (3), a private career college’s unearned fee balance for any given month in the college’s fiscal year is calculated in accordance with subsection 26 (5).
(5) Clause 33 (6) (a) of the Regulation is amended by striking out “subject to subsection (4)” at the beginning.
(6) Subsection 33 (7) of the Regulation is revoked.
15. Subsection 34 (5) of the Regulation is amended by striking out “Corporations Act” and substituting “Not-for-Profit Corporations Act, 2010”.
16. (1) Subsections 35 (2) to (7) of the Regulation are revoked.
(2) Subsection 35 (8) of the Regulation is amended by striking out “or its deemed cancellation under subsection (6)”.
17. The English version of subclause 41 (1) (c) (ii) of the Regulation is amended by striking out “who refuses” and substituting “who refuse”.
18. Subsection 47 (6) of the Regulation is revoked and the following substituted:
(6) The maximum amount to be paid out of the Fund under subsection (5) shall be the sum of the amount of the proceeds from the security provided by the private career college and 75 per cent of the General Fund Money, as determined on the day the Superintendent makes the payments.
19. Section 50 of the Regulation is revoked.
Commencement
20. (1) Subject to subsection (2), this Regulation comes into force on the later of January 1, 2017 and the day this Regulation is filed.
(2) Section 15 comes into force on the later of the day subsection 4 (1) of the Not-for-Profit Corporations Act, 2010 comes into force and the day this Regulation is filed.