HB4264 104TH GENERAL ASSEMBLY

LRB104 15990 LNS 29238 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4264

Introduced 1/14/2026, by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

105 ILCS 426/30

Amends the Private Business and Vocational Schools Act of 2012. Provides that an educational institution that offers instruction or programs of study for which the participant or student is not charged any tuition or fees other than a nominal fee to cover the costs of books, tools, and similar materials shall not be considered a private business and vocational school.

A BILL FOR

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 of 2012 is amended by changing Section 30 as follows:

(105 ILCS 426/30)

Sec. 30. Exemptions. For purposes of this Act, the following shall not be considered to be a private business and vocational school:

(1) Any institution devoted entirely to the teaching of religion or theology.

(2) Any in-service program of study and subject offered by an employer, provided that no tuition is charged and the instruction is offered only to employees of the employer.

(3) Any educational institution that (A) enrolls a majority of its students in degree programs and has maintained an accredited status with a regional accrediting agency that is recognized by the U.S. Department of Education or (B) enrolls students in one or more bachelor-level programs, enrolls a majority of its students in degree programs, and is accredited by a national or regional accrediting agency that is recognized by the U.S. Department of Education or that (i) is regulated by the Board under the Private College Act or the Academic Degree Act or is exempt from such regulation under either the Private College Act or the Academic Degree Act solely for the reason that the educational institution was in operation on the effective date of either the Private College Act or the Academic Degree Act or (ii) is regulated by the State Board of Education.

(4) Any institution and the franchisees of that institution that exclusively offer a program of study in income tax theory or return preparation at a total contract price of no more than $400, provided that the total annual enrollment of the institution for all such courses of instruction exceeds 500 students and further provided that the total contract price for all instruction offered to a student in any one calendar year does not exceed $3,000.

(5) Any person or organization selling mediated instruction products through a media, such as tapes, compact discs, digital video discs, or similar media, so long as the instruction is not intended to result in the acquisition of training for a specific employment field, is not intended to meet a qualification for licensure or certification in an employment field, or is not intended to provide credit that can be applied toward a certificate or degree program.

(6) Schools with no physical presence in this State. Schools offering instruction or programs of study, but that have no physical presence in this State, are not required to receive Board approval. Such an institution must not be considered not to have a physical presence in this State unless it has received a written finding from the Board that it has no physical presence. In determining whether an institution has no physical presence, the Board shall require all of the following:

(A) Evidence of authorization to operate in at least one other state and that the school is in good standing with that state's authorizing agency.

(B) Evidence that the school has a means of receiving and addressing student complaints in compliance with any federal or state requirements.

(C) Evidence that the institution is providing no instruction in this State.

(D) Evidence that the institution is not providing core academic support services, including, but not limited to, admissions, evaluation, assessment, registration, financial aid, academic scheduling, and faculty hiring and support in this State.

(7) A school or program within a school that exclusively provides yoga instruction, yoga teacher training, or both.

(8) Organizations that receive funding from the Department of Commerce and Economic Opportunity for workforce development preparation programs as provided for in the Energy Transition Act and the Illinois Works Jobs Program Act in which participants are not charged tuition. This paragraph does not include public institutions of higher education or private institutions of higher education, as defined in the Board of Higher Education Act, or community colleges, as defined in the Public Community College Act. For purposes of this paragraph, the Department of Commerce and Economic Opportunity shall provide the Board of Higher Education a complete list of all qualifying organizations under this paragraph on July 1 of each year.

(9) Labor organizations, as defined in Section 10 of the Collective Bargaining Freedom Act, that sponsor a United States Department of Labor registered apprenticeship program.

(10) An educational institution that offers instruction or programs of study for which the participant or student is not charged any tuition or fees other than a nominal fee to cover the costs of books, tools, and similar materials. For the purposes of this paragraph, "tuition" does not include donations, grants, or other sources of funding paid to the educational institution by a third party to support the instruction or program of study.

(Source: P.A. 102-1046, eff. 6-7-22; 103-595, eff. 6-26-24.)