Sen. David Koehler
Filed: 4/27/2010
 
 

 




 

 		












09600HB4984sam001

LRB096 16630 NHT 40708 a






1

AMENDMENT TO HOUSE BILL 4984




2
    AMENDMENT NO. ______. Amend House Bill 4984 by replacing 
3
everything after the enacting clause with the following:

 
4
    "Section 5. The Private Business and Vocational Schools Act 
5
is amended  by changing Sections 6, 9, and 13 as follows:
 
6
    (105 ILCS 425/6)  (from Ch. 144, par. 141)
7
    Sec. 6. Application for certificate - Contents. Every 
8
person,
partnership or corporation doing business in Illinois 
9
desiring to obtain a
certificate of approval shall make a 
10
signed and verified application to the
Superintendent upon 
11
forms prepared and furnished by the Superintendent,
which forms 
12
shall include the following information:
13
        1.  The legal title and name of the school, together 
14
    with ownership and
controlling officers, members, and 
15
    managing employees.
16
        2.  The specific courses of instruction which will be 
 


 






09600HB4984sam001
- 2 -
LRB096 16630 NHT 40708 a




1
    offered, and
the specific purposes of such instruction.
2
        3.  The place or places where such instruction will be 
3
    given and a
description of the physical and sanitary 
4
    facilities thereof.
5
        4.  A written inspection report of approval by the State 
6
    Fire Marshal
or his designee for use of the premises as a 
7
    school.
8
        5. A specific listing of the equipment available for 
9
    instruction in each
course of instruction, with the maximum 
10
    enrollment that
such equipment will accommodate.
11
        6. The names, addresses and current status of all 
12
    schools of which each
applicant has previously owned any 
13
    interest, and a declaration as to
whether any of these 
14
    schools were ever denied accreditation or licensing,
or, 
15
    lost accreditation or licensing from any governmental body 
16
    or accrediting agency.
17
        7. The educational and teaching qualifications of

18
    instructors in each course and subject of instruction, and 
19
    the teacher to
student ratio established by rule by the 
20
    superintendent pursuant to
industry standards and after 
21
    soliciting and receiving comments by the
schools in each 
22
    industry.
23
        7.1. The qualifications of administrators.
24
        8. The financial resources available to establish and

25
    maintain the school, documented by a
current balance sheet 
26
    and income statement prepared and certified by an

 


 






09600HB4984sam001
- 3 -
LRB096 16630 NHT 40708 a




1
    accountant or any such similar evidence as required by the 
2
    Superintendent.
3
        9. A continuous surety company bond, written by a 
4
    company authorized
to do business in this State, for the 
5
    protection of the contractual rights
including faithful 
6
    performance of all contracts and agreements for
students, 
7
    their parents, guardians, or sponsors in a sum of up to

8
    $100,000, except that when the unearned prepaid tuition for 
9
    Illinois
students in the possession of the school, as 
10
    annually determined by
the Superintendent, exceeds 
11
    $100,000
the bond shall be in an amount equal to the 
12
    greatest amount of prepaid
tuition in the school's 
13
    possession. In lieu of a surety bond, an applicant may, 
14
    with the advanced approval of the State Board of Education 
15
    prior to January 1, 2007, deposit with the State Board of 
16
    Education as security a certificate of deposit of any bank 
17
    organized or transacting business in the United States in 
18
    an amount equal to or greater than the amount of the 
19
    required bond. The applicant must first satisfy the State 
20
    Board of Education that the certificate of deposit is free 
21
    and clear of all liens, pledges, security interests, and 
22
    other encumbrances.  The State Board of Education shall 
23
    perfect a first priority security interest in the 
24
    certificate of deposit to provide the protection required 
25
    under this item 9. The certificate of deposit must be held 
26
    and made payable in accordance with terms and provisions 
 


 






09600HB4984sam001
- 4 -
LRB096 16630 NHT 40708 a




1
    approved in advance by the State Board of Education and 
2
    must be replaced by a bond meeting the requirements set 
3
    forth in this item 9 within 180 days after the issuance of 
4
    the certificate of approval to the applicant. Failure to 
5
    replace the certificate of deposit with a continuous surety 
6
    company bond shall result in revocation of the certificate 
7
    of approval.

8
        10. Annual reports reflecting teacher, equipment and 
9
    curriculum
evaluations.
10
        11. Copies of enrollment agreements and retail 
11
    installment contracts
to be used in Illinois.
12
        12. Methods used to collect tuition and procedures
for 
13
    collecting delinquent payments.
14
        13. Copies of all brochures, films, promotional 
15
    material
and written scripts, and media advertising and 
16
    promotional literature that
may be used to induce students 
17
    to enroll in courses of instruction.
18
        14. Evidence of liability insurance, in such form and 
19
    amount as the
Board shall from time to time prescribe 
20
    pursuant to rules and regulations
promulgated hereunder, 
21
    to protect its students and employees at its places
of 
22
    business and at all classroom extensions including any work

23
    experience locations.
24
        15. Each application for a certificate of approval 
25
    shall
be signed and certified under oath by the school's 
26
    chief managing
employee and also by its individual owner or 
 


 






09600HB4984sam001
- 5 -
LRB096 16630 NHT 40708 a




1
    owners; provided, that if the
applicant is a partnership or 
2
    a corporation, then such application shall be
signed and 
3
    certified under oath by the school's chief managing 
4
    employee
and also by each member of the partnership or each 
5
    officer of the
corporation, as the case may be.
6
        16. If the evaluation of a particular course or 
7
    facility requires the
services of an expert not employed by 
8
    the State Board of Education or if in
the interest of 
9
    expediting the approval, a school requests the State Board

10
    of Education to employ such an expert, the school shall 
11
    reimburse the State
Board of Education for the reasonable 
12
    cost of such services.
13
    From July 1, 2010 until June 30, 2012, application forms 
14
shall provide that private business and vocational schools that 
15
have obtained national accreditation from an accrediting 
16
agency designated by the U.S. Department of Education may 
17
submit evidence of current accreditation in lieu of responses 
18
to the application requests delineated in this Section. 
19
Applications submitted on evidence of national accreditation 
20
must be approved or denied within 30 days after receipt. If no 
21
action is taken within 30 days, the application shall be deemed 
22
approved and a certificate of approval must be issued. 
23
(Source: P.A. 94-1060, eff. 7-31-06.)
 
24
    (105 ILCS 425/9)  (from Ch. 144, par. 144)
25
    Sec. 9. Restriction
of certificate to courses of 
 


 






09600HB4984sam001
- 6 -
LRB096 16630 NHT 40708 a




1
instruction indicated in
application - Supplementary

2
applications.
3
    Any certificate of approval issued shall restrict the 
4
school to the
teaching of the courses of instruction indicated 
5
in the application
for the approval year
for which the 
6
certificate is issued.  Prior to the offering of any
additional 
7
or supplementary
courses of instruction the school shall make 
8
application on forms prepared
and furnished by the 
9
Superintendent and secure
approval from the Superintendent and 
10
pay the fee prescribed therefor.
11
    From July 1, 2010 until June 30, 2012, supplementary 
12
application forms shall provide that private business and 
13
vocational schools that have obtained national accreditation 
14
for new courses or programs from an accrediting agency 
15
designated by the U.S. Department of Education may submit 
16
evidence of current accreditation in lieu of other application 
17
requests. Supplementary applications submitted on evidence of 
18
national accreditation must be approved or denied within 30 
19
days after receipt. If no action is taken within 30 days, the 
20
application shall be deemed approved and a certificate of 
21
approval must be issued. 
22
(Source: P.A. 83-1484.)
 
23
    (105 ILCS 425/13)  (from Ch. 144, par. 148)
24
    Sec. 13. Annual renewal of certificates and permits. Each 
25
school
and each sales representative
that continues as such 
 


 






09600HB4984sam001
- 7 -
LRB096 16630 NHT 40708 a




1
shall annually make application upon forms
prepared and 
2
furnished by the Superintendent to
renew its certificate of 
3
approval or his or her permit, as the case may
be,  and shall 
4
pay the required annual renewal
fee.  The Superintendent shall 
5
have the authority to designate
renewal and expiration dates 
6
for all certificates of approval and sales
representative's 
7
permits.
Each such application shall be reviewed annually by 
8
the Superintendent.
9
    From July 1, 2010 until June 30, 2012, application forms 
10
shall provide that private business and vocational schools that 
11
have obtained national accreditation from an accrediting 
12
agency designated by the U.S. Department of Education may 
13
submit evidence of current accreditation in lieu of other 
14
application requests. Applications submitted on evidence of 
15
national accreditation must be approved or denied within 30 
16
days after receipt. If no action is taken within 30 days, the 
17
application shall be deemed approved and a certificate of 
18
approval must be issued. 
19
(Source: P.A. 85-1382.)
 

20
    Section 99. Effective date. This Act takes effect July 1, 
21
2010.".