Interpretation

1  In this regulation:

"Act" means the Degree Authorization Act;

"consent holder" means a person to whom the minister gives consent under section 4 of the Act in respect of a program;

"program" means each program leading to a degree proposed by an applicant for consent or in respect of which consent has been given to a consent holder;

"security" has the same meaning as "bond" as defined in the Bonding Act;

"unearned revenue" means prepaid tuition fees and deposits on tuition paid by or on behalf of a student that are not yet earned by the applicant for consent or consent holder because the portion of the program to which the fees or deposits relate has not been delivered, but does not include

(a) registration fees of less than $100,

(b) payments received directly from a student's employer, or

(c) payments received directly from the government of British Columbia or the government of Canada, unless the money is paid under the British Columbia Student Assistance Program.

Security

2  (1) For the purposes of section 4 (4) (a) of the Act, security is prescribed respecting all applicants for consent and consent holders, except for the following:

(a) Trinity Western University;

(b) Seminary of Christ the King;

(c) a public post-secondary institution.

(2) An applicant for consent must give security for a program that is

(a) acceptable security under section 7.403 of the Bonding Regulations, and

(b) subject to subsection (3), in an amount that is calculated by

(i) making a projection of unearned revenue for 12 consecutive calendar months beginning on the month during which the applicant gives security,

(ii) identifying the highest monthly amount of unearned revenue from the projections made under subparagraph (i), and

(iii) multiplying the highest monthly amount identified under subparagraph (ii) by 0.75.

(3) The amount of security given in respect of all programs must be at least $100 000.

(4) A consent holder must maintain security for a program that is

(a) acceptable security under section 7.403 the Bonding Regulations, and

(b) subject to subsection (5), in an amount that is calculated by

(i) making a projection of unearned revenue

(A) for 12 consecutive calendar months beginning on the month during which the consent holder gave security under subsection (2),

(B) for each calendar month beginning on the August 1 following the date consent is given and ending on July 31 of the subsequent year, or

(C) for each calendar month during a subsequent year, beginning on August 1 and ending on the following July 31

whichever is applicable,

(ii) identifying the highest monthly amount of unearned revenue from the projections made under subparagraph (i), and

(iii) multiplying the highest monthly amount identified in accordance with subparagraph (ii) by 0.75.

(5) The amount of security maintained must

(a) if for any month the actual unearned revenue of the consent holder is expected to exceed the amount of unearned revenue projected and calculated under subsection (4) (b), be immediately re-calculated and adjusted by multiplying the expected actual unearned revenue for that month by 0.75, and

(b) be at least $100 000 in respect of all programs.

(6) A consent holder must

(a) notify the minister of a re-calculation and adjustment of the amount of security under subsection (5) (a), and

(b) provide evidence that is satisfactory to the minister that security is being maintained in accordance with this section, annually and when requested by the minister.

Fees

3  An applicant for consent must pay to the Minister of Finance for an item described in column 1 of the Table the fee set out in column 2 opposite that item.