Public Act 096-1442
 
HB4984 EnrolledLRB096 16630 MJR 31906 b


  
    AN ACT concerning education.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The Private Business and Vocational Schools Act 
is amended  by changing Sections 6, 9, and 13 as follows:
 
    (105 ILCS 425/6)  (from Ch. 144, par. 141)
    Sec. 6. Application for certificate - Contents. Every 
person,
partnership or corporation doing business in Illinois 
desiring to obtain a
certificate of approval shall make a 
signed and verified application to the
Superintendent upon 
forms prepared and furnished by the Superintendent,
which forms 
shall include the following information:
        1.  The legal title and name of the school, together 
    with ownership and
controlling officers, members, and 
    managing employees.
        2.  The specific courses of instruction which will be 
    offered, and
the specific purposes of such instruction.
        3.  The place or places where such instruction will be 
    given and a
description of the physical and sanitary 
    facilities thereof.
        4.  A written inspection report of approval by the State 
    Fire Marshal
or his designee for use of the premises as a 
    school.
        5. A specific listing of the equipment available for 
    instruction in each
course of instruction, with the maximum 
    enrollment that
such equipment will accommodate.
        6. The names, addresses and current status of all 
    schools of which each
applicant has previously owned any 
    interest, and a declaration as to
whether any of these 
    schools were ever denied accreditation or licensing,
or, 
    lost accreditation or licensing from any governmental body 
    or accrediting agency.
        7. The educational and teaching qualifications of

    instructors in each course and subject of instruction, and 
    the teacher to
student ratio established by rule by the 
    superintendent pursuant to
industry standards and after 
    soliciting and receiving comments by the
schools in each 
    industry.
        7.1. The qualifications of administrators.
        8. The financial resources available to establish and

    maintain the school, documented by a
current balance sheet 
    and income statement prepared and certified by an

    accountant or any such similar evidence as required by the 
    Superintendent.
        9. A continuous surety company bond, written by a 
    company authorized
to do business in this State, for the 
    protection of the contractual rights
including faithful 
    performance of all contracts and agreements for
students, 
    their parents, guardians, or sponsors in a sum of up to

    $100,000, except that when the unearned prepaid tuition for 
    Illinois
students in the possession of the school, as 
    annually determined by
the Superintendent, exceeds 
    $100,000
the bond shall be in an amount equal to the 
    greatest amount of prepaid
tuition in the school's 
    possession. In lieu of a surety bond, an applicant may, 
    with the advanced approval of the State Board of Education 
    prior to January 1, 2007, deposit with the State Board of 
    Education as security a certificate of deposit of any bank 
    organized or transacting business in the United States in 
    an amount equal to or greater than the amount of the 
    required bond. The applicant must first satisfy the State 
    Board of Education that the certificate of deposit is free 
    and clear of all liens, pledges, security interests, and 
    other encumbrances.  The State Board of Education shall 
    perfect a first priority security interest in the 
    certificate of deposit to provide the protection required 
    under this item 9. The certificate of deposit must be held 
    and made payable in accordance with terms and provisions 
    approved in advance by the State Board of Education and 
    must be replaced by a bond meeting the requirements set 
    forth in this item 9 within 180 days after the issuance of 
    the certificate of approval to the applicant. Failure to 
    replace the certificate of deposit with a continuous surety 
    company bond shall result in revocation of the certificate 
    of approval.

        10. Annual reports reflecting teacher, equipment and 
    curriculum
evaluations.
        11. Copies of enrollment agreements and retail 
    installment contracts
to be used in Illinois.
        12. Methods used to collect tuition and procedures
for 
    collecting delinquent payments.
        13. Copies of all brochures, films, promotional 
    material
and written scripts, and media advertising and 
    promotional literature that
may be used to induce students 
    to enroll in courses of instruction.
        14. Evidence of liability insurance, in such form and 
    amount as the
Board shall from time to time prescribe 
    pursuant to rules and regulations
promulgated hereunder, 
    to protect its students and employees at its places
of 
    business and at all classroom extensions including any work

    experience locations.
        15. Each application for a certificate of approval 
    shall
be signed and certified under oath by the school's 
    chief managing
employee and also by its individual owner or 
    owners; provided, that if the
applicant is a partnership or 
    a corporation, then such application shall be
signed and 
    certified under oath by the school's chief managing 
    employee
and also by each member of the partnership or each 
    officer of the
corporation, as the case may be.
        16. If the evaluation of a particular course or 
    facility requires the
services of an expert not employed by 
    the State Board of Education or if in
the interest of 
    expediting the approval, a school requests the State Board

    of Education to employ such an expert, the school shall 
    reimburse the State
Board of Education for the reasonable 
    cost of such services.
    From July 1, 2010 until June 30, 2012, application forms 
shall provide that private business and vocational schools that 
have obtained national accreditation from an accrediting 
agency designated by the U.S. Department of Education may 
submit evidence of current accreditation in lieu of responses 
to the application requests delineated in this Section. 
Applications submitted on evidence of national accreditation 
must be approved or denied within 30 days after receipt. If no 
action is taken within 30 days, the application shall be deemed 
approved and a certificate of approval must be issued. 
(Source: P.A. 94-1060, eff. 7-31-06.)
 
    (105 ILCS 425/9)  (from Ch. 144, par. 144)
    Sec. 9. Restriction
of certificate to courses of 
instruction indicated in
application - Supplementary

applications.
    Any certificate of approval issued shall restrict the 
school to the
teaching of the courses of instruction indicated 
in the application
for the approval year
for which the 
certificate is issued.  Prior to the offering of any
additional 
or supplementary
courses of instruction the school shall make 
application on forms prepared
and furnished by the 
Superintendent and secure
approval from the Superintendent and 
pay the fee prescribed therefor.
    From July 1, 2010 until June 30, 2012, supplementary 
application forms shall provide that private business and 
vocational schools that have obtained national accreditation 
for new courses or programs from an accrediting agency 
designated by the U.S. Department of Education may submit 
evidence of current accreditation in lieu of other application 
requests. Supplementary applications submitted on evidence of 
national accreditation must be approved or denied within 30 
days after receipt. If no action is taken within 30 days, the 
application shall be deemed approved and a certificate of 
approval must be issued. 
(Source: P.A. 83-1484.)
 
    (105 ILCS 425/13)  (from Ch. 144, par. 148)
    Sec. 13. Annual renewal of certificates and permits. Each 
school
and each sales representative
that continues as such 
shall annually make application upon forms
prepared and 
furnished by the Superintendent to
renew its certificate of 
approval or his or her permit, as the case may
be,  and shall 
pay the required annual renewal
fee.  The Superintendent shall 
have the authority to designate
renewal and expiration dates 
for all certificates of approval and sales
representative's 
permits.
Each such application shall be reviewed annually by 
the Superintendent.
    From July 1, 2010 until June 30, 2012, application forms 
shall provide that private business and vocational schools that 
have obtained national accreditation from an accrediting 
agency designated by the U.S. Department of Education may 
submit evidence of current accreditation in lieu of other 
application requests. Applications submitted on evidence of 
national accreditation must be approved or denied within 30 
days after receipt. If no action is taken within 30 days, the 
application shall be deemed approved and a certificate of 
approval must be issued. 
(Source: P.A. 85-1382.)
 

    Section 99. Effective date. This Act takes effect July 1, 
2010.