Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
165A.350(3)-(7), (10),
165A.360(2)-(5), (10)
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
165A.340(6) and
165A.400 authorize the
commission to promulgate administrative regulations to administer the
provisions of KRS
165A.310-165A.390, including establishment of
fees and other charges.
KRS
165A.350 requires all proprietary schools to
maintain a surety bond for the agents and the schools.
KRS
165A.360(2) sets forth the
range of bonding requirements for agents and schools and requires the
commission to establish the bond amounts. This administrative regulation sets
the surety bond requirements to be maintained on agents and schools.
Section 1. Surety Bond.
(1) A school shall:
(a) Complete a School Surety Bond, Form
PE-26; and
(b) Maintain a school
surety bond in the amount of at least $20,000.
(2) In lieu of the school surety bond, the
commission shall accept an irrevocable letter of credit made in favor of the
Kentucky Commission on Proprietary Education from a verifiable licensed
financial institution in the amount of at least $20,000, or other types of
collateral as approved by the commission that meet this minimum amount of
$20,000 as established in
KRS
165A.350(3).
Section 2. Agent Surety Bond.
(1) A school shall:
(a) In accordance with
KRS
165A.350(3) maintain an
agent surety bond, or in the case of multiple agents, maintain a blanket agent
surety bond, in the amount of at least $5,000 for each agent employed by the
school; and
(b) Complete a Blanket
Agent Surety Bond, Form PE-27.
(2) In lieu of the agent surety bond, the
commission shall accept an irrevocable letter of credit made in favor of the
Kentucky Commission on Proprietary Education from a licensed financial
institution equal to the amount specified in subsection (1) of this section, or
other types of collateral as approved by the commission that meet the minimum
amount established in subsection (1) of this section as established in
KRS
165A.350(3).
Section 3. Multiple School
Campuses.
(1) Each school campus for any
school residing in and doing business in Kentucky for licensing and bonding
purposes shall be considered a separate school and shall be required to provide
a separate school surety bond and an agent surety bond.
(2) Each nonresidential school doing business
in Kentucky shall be required to provide a school surety bond and an agent
surety bond.
Section 4.
Incorporation by Reference.
(1) The following
material is incorporated by reference:
(a)
Form PE-26, "School Surety Bond", edition May 2022; and
(b) Form PE-27, "Blanket Agent Surety Bond",
edition May 2022.
(2)
This material may be inspected, copied, or obtained, subject to applicable
copyright law, at the Kentucky Commission on Proprietary Education, 500 Mero
Street, 4th Floor, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to
4:30 p.m. This material is also available on the commission's Web site at
www.kcpe.ky.gov.
STATUTORY AUTHORITY:
KRS
165A.340(6),
165A.350(3),
165A.360(2),
165A.400
