NOTICE OF PUBLIC MEETING April 11, 2011 Nevada Commission on Postsecondary Education The Commission on Postsecondary Education will conduct a quarterly meeting on May 13, 2011, commencing at 9:00am, at the Las Vegas office of the Nevada State Contractor’s Board, 2310 Corporate Circle Drive, Suite 200, Henderson, NV 89074, and teleconferenced to the Nevada State Contractor’s office in Reno, 9670 Gateway Drive, Suite 100, Reno, NV 89521. With the exception of posted hearings, the Commission reserves the right to take agenda items out of order to accomplish business in the most efficient manner. Item Action Info General Business 1. Call to Order ------------------------------------------------------------------------------------------- x 2. Open Meeting Compliance ------------------------------------------------------------------------------------------- x 3. Roll Call ------------------------------------------------------------------------------------------------------------------- x 4. Adoption of Agenda ----------------------------------------------------------------------------------- x 5. Approval of Minutes ----------------------------------------------------------------------------------- x 6. Administrator’s Report ------------------------------------------------------------------------------------------------ x License Revocation Hearing 7. Oxman College ----------------------------------------------------------------------------------------- x Review of Contingencies 8. Las Vegas International Academy of Business ------------------------------------------------x Applicants for Provisional Licensure 9. AD Banker & Company ------------------------------------------------------------------------------ x 10. Las Vegas Academy of Dental Professionals -------------------------------------------------- x 11. Southern States University ------------------------------------------------------------------------- x Applicants for Full Term Licensure 12. Academy of Dental Careers (recommend full term licensure) -------------------------------------- x 13. Limotech (recommend extension) ----------------------------------------------------------------------- x 14. Phlebotomy Learning Center of Las Vegas (recommend full term licensure) ------------------ x Comments 15. Public ---------------------------------------------------------------------------------------------------------------------- x 16. Commission -------------------------------------------------------------------------------------------------------------- x Adjournment This meeting begins at time posted above and continues according to the agenda until adjournment. Persons who have business before the Commission are responsible to see that they are in attendance at the time such business transpires. In order to be considered by the Commission, provisional applicants and applicants for new programs in licensed schools must be represented at the meeting. This agenda was mailed to groups and individuals as requested and posted at the following locations: Commission on Postsecondary Education, 3663 East Sunset Road, Suite 202, Las Vegas, NV Nevada Department of Education, 700 East Fifth Street, Carson City, NV Elko County Library, 720 Court St., Elko, NV Goldfield Public Library, Corner of Crook and Fourth, Goldfield, NV Notice: Members of the public who require special accommodations or assistance at the meeting are requested to notify the Commission on Postsecondary in writing at 3663 East Sunset Road, Suite 202, Las Vegas, Nevada 89120, or by calling 702-486-7330, or via E-Mail to bshanteler@cpe.state.nv.us. Please notify the agency no later than 10 working days prior to the meeting to allow time to secure any necessary equipment or provisions prior to the meeting. MINUTES OF THE COMMISSION ON POSTSECONDARY EDUCATION May 13, 2011 CALL TO ORDER The meeting, held at the Nevada State Contractors Board, Henderson, Nevada, and the Nevada State Contractor Board, Reno, Nevada, was called to order by Chairwoman Andriola at approximately 9:15a.m. Mr. Perlman certified compliance with the Open Meeting Law. Chairwoman Andriola requested a roll call and Ms. Shanteler complied. A quorum was present. COMMISSIONERS PRESENT Commissioner Andriola, Chair Commissioner North, Vice Chair Commissioner Clark Commissioner Lynch Commissioner Russell COMMISSIONERS ABSENT Commissioner Chairez Commissioner Cook STAFF IN ATTENDANCE Mr. Tim Breen, Education Specialist Mr. David Perlman, Administrator Ms. Bonnie Shanteler, Compliance Audit Investigator Mr. Robert Whitney, Deputy Attorney General OTHERS IN ATTENDANCE See attached sheet AGENDA Chairwoman Andriola requested the agenda be amended to place items 7 and 8 after item 11. Motion to adopt as recommended by Commissioner North; seconded by Commissioner Russell. Unanimous. MINUTES Motion to adopt by Commissioner Lynch; seconded by Commissioner Russell. Unanimous. ADMINISTRATOR’S REPORT Mr. Perlman told the commissioners that the two-year budget was heard in March and closed in April by the joint Senate Finance and Assembly Ways and Means committee. Mr. Perlman explained that new federal guidelines required all Title IV eligible schools that offer distance education to obtain approval from each state. Schools that have no physical presence, do not advertise or otherwise operate in Nevada (including any externship requirement) are considered exempt. He stated that the Commission may want to consider some type of authorization to allow an online school with an externship component but it may require a change to NRS Chapter 394. Commissioner Russell requested this be placed on a future agenda. Chairwoman Andriola agreed and requested that background material be provided to all commissioners. Mr. Perlman stated that AB40, the bill that makes changes to the background investigation process has passed the Assembly and was heard by the Senate’s Education Committee. He told the commissioners that one senator requested online instructors in other states complete the background investigation process with us if their state did not require it. Mr. Perlman concluded with the quarterly enrollment of 7,764 students with all schools reporting. May 13, 2100 Commission Meeting Page 2 PROVISIONAL LICENSURE AD Banker & Company Testified: Mr. Dennis Anderson Discussion: Mr. Anderson presented a background of the company and school and the training they provide in other states. Commissioner Lynch asked what level of assistance student would get from the school’s director, especially if a student did not pass or needed assistance. Mr. Anderson stated the director, Sue Trujillo, would be available full time and that students had access to the short term course material for 90 days. He stated that students could re-enter the course if needed. Commissioner Russell stated she did not see a budget line for a local facility, asking how and where records would be maintained. Mr. Anderson replied that all records were automated, that students signed up online and all course work was done and maintained online. Chairwoman Andriola questioned whether licensure was necessary as it appeared most of the students were employed prior to training and the tuition was paid by their employers. Mr. Tucker replied that about 25 percent of his students were walk-ins but that most students were employees who were hired initially in the industry and then sent to class to get the training and state license. Motion: Grant a 12-month provisional license to A D Banker & Company to offer Insurance Pre-Licensing and Securities Series 6 and 63 Pre-Licensing programs, contingent upon receipt of a $10,000 surety bond, completion of a facility review and receipt of curriculum and instructor approvals from the Nevada Division of Insurance. By: Commissioner Lynch Second: Commissioner Clark Result: Unanimous Las Vegas Academy of Dental Professionals Testified: Ms. Katrina McClelland; Dr. Ken Tran; Ms. Terrie Tran Discussion: Ms. McClelland told the commissioners that the Tran’s owed an existing dental practice where training would be provided and that the program they would be offering included more hands-on that other programs, including chair side with a dentist. Commissioner Clark questioned the enrollment projection of 360 students as it impacted the bond amount and if the facility could accommodate a high number of students. Ms. McClelland stated the projection was based on other schools’ enrollments and represented the highest number they would allow. She said the facility consisted of 3,000 square feet which included one lecture classroom, two labs and office space. Mr. Breen stated that he believed projected enrollment was high and that 60 students appeared more in line with historical enrollments. He said that the bond could be adjusted over time if enrollments were higher. Chairwoman Andriola stated that the motion could be amended to require a bond amount based on the formula if enrollments exceed 100 students. Commissioner Lynch questioned the impact on the dental practice if Dr. Tran was the only instructor. Ms. McClelland stated that they had a second instructor and an aide and that the aide could cover if needed. She told the commission that the aide was qualified for both clinical and classroom instruction. Commissioner Lynch questioned why the program was significantly shorter than competitors’ programs. Ms. McClelland stated that the program focused more on practical training rather than lecture and that students would have to complete at least 75 percent of the classroom training prior to performing chair side. Commissioner Lynch asked about the school’s policy for students who could not pass the program and Ms. McClelland stated that they would use the state approved refund policy for students who dropped. Commissioner North questioned the projected enrollment forecast and asked what the impact would be if the school did not meet the forecast. Ms. McClelland replied that they would adjust staff and instructors accordingly. Commissioner North asked what students would receive upon completion and Ms. McClelland stated that students would get a certification of completion, a certificate in radiography and be eligible to sit for the first portion of the registered dental assistant test. Commissioner Russell asked who would be filling the positions of director and academic director and would that be made known to students. Ms. McClelland stated she would be the director and Dr. Tran would be the academic director, and students would be able to contact her. Commissioner North questioned the availability of jobs for dental assistants with the decline in state population and Ms. McClelland stated that the dental industry is doing well and many dentists are looking for qualified assistance who can step into the job. Commissioner Russell asked how many students were covered by the recommended bond amount and Chairwoman Andriola stated it would cover 60 students. Motion: Grant a 12-month provisional license to the Las Vegas Academy of Dental Professionals to offer their Dental Assisting program, contingent upon the receipt of a $150,000 surety bond, staff and instructor information and facility information, completion of a facility review and that the school will provide quarterly enrollment information and the bond will be adjusted upward adjustment if enrollments exceed 60 students. By: Commissioner Clark Second: Commissioner North Result: Unanimous May 13, 2100 Commission Meeting Page 3 REVIEW OF CONTINGENCIES/PROVISIONAL LICENSURE NOTE: Mr. Perlman stated that the applicants for Southern States University were the same individuals for the Las Vegas International Business Academy. Chairwoman asked the deputy attorney general if the Commission could hear the two applications as one. Mr. Whitney stated that would be acceptable. Chairwoman Andriola stated that they would hear both. Mr. Perlman stated that the issue concerning the Las Vegas International Business Academy impacted the application for Southern States University and should be heard first. Chairwoman Andriola stated the Commission would hear the review of contingencies for the Las Vegas International Business Academy first and requested Mr. Breen present his findings. Las Vegas International Academy of Business Motion: Not to accept the letter from the school’s CPA as an adequate response to clear the contingency of a CPAreview of potential financial impact if the investigations conducted by the U.S. Department of Immigrations and Customs and the California Department of Insurance are negative. By: Commissioner North Second: Commissioner Lynch Result: Unanimous Testified: Mr. John Tucker, Ms. Stephanie Derringer, Ms. Kaylyn Bondy Discussion: See discussion item below under Southern States University. Southern States University Testified: Mr. John Tucker; Ms. Stephanie Derringer, Ms. Kaylyn Bondy Discussion: Mr. Breen presented his findings to the Commission concerning the financial statement note that the owning entity was the subject of an investigation by the U.S. Department of Immigration and the California Department of Insurance. The Commission approved licensure contingent upon receipt of a CPA-prepared review of the financial impact if the investigations were negative. He stated that neither of the documents submitted fulfilled the contingency as one did not address the financial impact and the other was prepared by an individual who was not a CPA but was the owner’s chief financial officer. Chairwoman Andriola questioned why Ms. Tepper was not present and Mr. Tucker stated she was ill. Mr. Tucker stated that a CPA could not assess the financial impact if they did not know the outcome. Commissioner Clark said that a CPA should be able to determine what the assessed fines, back taxes or refunds might be if the investigations had merit and the results might be lower than expected and alleviate Commission concerns. Mr. Tucker stated again he could not determine what the negative impact would be. Ms. Derringer summarized the report prepared by their CFO, indicating there was information pertaining to the insurance investigation as well as information concerning the U.S. Department of Immigration’s investigation. She stated that since students are making payments, the school would not have to make refunds. Commissioner North stated that an accountant could do a forensic study that would project income as well as risk assessments. Mr. Tucker again said that since he doesn’t know what the outcome will be, he could not get a CPA to determine the financial impact. Commissioner Lynch asked if the applicant had sought the services of a forensic CPA, stating they are more qualified to make forecasts and what he was doing to find out the current status of the investigations. Mr. Tucker stated they had requested information but could not find out any information other than the fact that documents had been seized and two grand juries met without referring charges. Ms. Derringer stated the findings of the investigations should have little impact. Commissioner Lynch commented that their application was being held up because the school was not seeking a CPA review of the worst case scenario which could be accomplished by a forensic CPA. Mr. Breen stated he was unable to find out any information pertaining to the investigations but that students could lose their immigration status should the school close due to financial loss. Commissioner Andriola asked if the applicants fully understood what the Commission was requesting and would they be able to get the requested report. Mr. Tucker stated he would seek the services of a forensic CPA review. Commissioner Andriola stated that this contingency was also part of the application for Southern States University and that the Commission could make several motions. Mr. Tucker asked for any extension to fulfill the contingencies. Mr. Perlman stated that the school must fulfill the contingencies on or before June 2, 2011, or the approval would be withdrawn. He said if the application for Southern States University was heard and approved with the same contingency, that school would then have six months for fulfill the contingency. He said he did not believe the Commission had the authority to extend the time to fulfill the contingency. Deputy Attorney General Whitney stated that the regulation did not allow the Commission to extend the time allowed. Commissioner Andriola asked if the applicants understood the pending motion for the Las Vegas International Academy of Business and Mr. Tucker indicated he did. May 13, 2100 Commission Meeting Page 4 1st Motion: That the application for Southern States University be delayed until all issues with the investigations by the U.S. Department of Immigrations and Customs and the California Division of Insurance against Southern States University are fully resolved and the full impact to the financial condition of Tepper Technologies Inc., and Southern States University is known. By: Commissioner North Second: Commissioner Russell Discussion: Commissioner North said the applicant has the right to obtain information pertaining to the status of the investigations and should seek legal help in obtaining that prior to coming back to the Commission. Mr. Tucker asked if submission of a report meeting the Commission’s criteria prior to June 2, 2011, was acceptable and Mr. Perlman answered yes. Commissioner Clark asked for clarification of the motion in that if the CPA review was submitted with favorable results that the application could then be heard even if the investigations were not concluded. Commissioner North amended her motion as such. Commissioner Russell seconded. Amendment That the application for Southern States University be delayed until a CPA prepared review finds there will be no significant financial impact resulting from the investigations by the U.S. Department of Immigrations and Customs and the California Division of Insurance against Southern States University. By: Commissioner North Second: Commissioner Russell Result: Unanimous The Commission recessed for a short break. PROVISIONAL TO FULL TERM Academy of Dental Careers Motion: Grant full term license. By: Commissioner Lynch Second: Commissioner Russell. Result: Unanimous. Limotech Motion: By: Second: Result: That the provisional license approved for Limotech be extended for 12 months. Commissioner Lynch Commissioner Russell. Unanimous. Phlebotomy Learning Center of Las Vegas Motion: Grant full term license. By: Commissioner Lynch Second: Commissioner Russell. Result: Unanimous. LICENSE REVOCATION HEARING Oxman College Testified: Mr. David Perlman Discussion: Chairwoman Andriola asked if the Commission could take action and Mr. Whitney told the Commission they could proceed. Commissioner Lynch asked if Oxman College held a license and Mr. Perlman stated they were provisionally licensed to offer medical assisting. Commissioner Russell asked if the school had students enrolled and Mr. Perlman stated they did not. Motion: That the license to operate a private postsecondary educational institution granted to Michael Dvokin, CEO, and Oxman College, be revoked for failure to maintain surety in the amount set by the Commission, a violation of NRS 394.480(1). By: Commissioner Clark Second: Commissioner Russell Result: Unanimous PUBLIC COMMENT None. COMMISSION COMMENT Chairwoman Andriola thanked Mr. Perlman for his work and presentation on the Commission’s budget and AB40. She also congratulated Commissioner Russell for completing her doctorate program. ADJOURNMENT