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


 
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    Section 5. The Private Business and Vocational Schools Act 
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is amended  by changing Sections 6, 9, and 13 as follows:
 
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    (105 ILCS 425/6)  (from Ch. 144, par. 141)
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    Sec. 6. Application for certificate - Contents. Every 
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person,
partnership or corporation doing business in Illinois 
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desiring to obtain a
certificate of approval shall make a 
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signed and verified application to the
Superintendent upon 
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forms prepared and furnished by the Superintendent,
which forms 
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shall include the following information:
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        1.  The legal title and name of the school, together 
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    with ownership and
controlling officers, members, and 
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    managing employees.
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        2.  The specific courses of instruction which will be 
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    offered, and
the specific purposes of such instruction.
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        3.  The place or places where such instruction will be 
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    given and a
description of the physical and sanitary 
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    facilities thereof.
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        4.  A written inspection report of approval by the State 
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    Fire Marshal
or his designee for use of the premises as a 
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    school.
 


 






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        5. A specific listing of the equipment available for 
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    instruction in each
course of instruction, with the maximum 
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    enrollment that
such equipment will accommodate.
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        6. The names, addresses and current status of all 
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    schools of which each
applicant has previously owned any 
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    interest, and a declaration as to
whether any of these 
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    schools were ever denied accreditation or licensing,
or, 
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    lost accreditation or licensing from any governmental body 
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    or accrediting agency.
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        7. The educational and teaching qualifications of

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

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

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

 


 






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

 


 






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

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


 






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    the State Board of Education or if in
the interest of 
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    expediting the approval, a school requests the State Board

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

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applications.
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    Any certificate of approval issued shall restrict the 
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school to the
teaching of the courses of instruction indicated 
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in the application
for the approval year
for which the 
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certificate is issued.  Prior to the offering of any
additional 
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or supplementary
courses of instruction the school shall make 
 


 






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


 






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the Superintendent.
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    From July 1, 2010 until June 30, 2012, application forms 
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shall provide that private business and vocational schools that 
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have obtained national accreditation from an accrediting 
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agency designated by the U.S. Department of Education may 
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submit evidence of current accreditation in lieu of other 
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application requests. Applications submitted on evidence of 
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national accreditation must be approved or denied within 30 
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days after receipt. If no action is taken within 30 days, the 
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application shall be deemed approved and a certificate of 
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approval must be issued. 
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(Source: P.A. 85-1382.)
 

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