State of Illinois
90th General Assembly
Legislation

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90_SB1664enr

      105 ILCS 425/1            from Ch. 144, par. 136
          Amends the Private Business and Vocational  Schools  Act.
      Changes  the  definition  of  a "sales representative" from a
      "person"  (defined  elsewhere  to  include   an   individual,
      corporation,  or  other business entity) employed by a school
      for specified purposes  to  an  "individual"  employed  by  a
      school for those purposes.  Effective immediately.
                                                     LRB9010089THpk
SB1664 Enrolled                                LRB9010089THpk
 1        AN ACT relating to education, amending named Acts.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 3.   The  School  Code  is  amended  by  changing
 5    Sections 2-3.115 and 10-20.12a as follows:
 6        (105 ILCS 5/2-3.115)
 7        Sec. 2-3.115. Tech Prep Programs.
 8        (a)  Programs  of  academic  credit  Youth Apprenticeship
 9    Vocational  Education  programs  (Tech  Prep)  for  secondary
10    school students.  The State Superintendent of  Education,  in
11    cooperation with the Board of Higher Education, is encouraged
12    to  establish a program of academic credit for Tech Prep work
13    based  learning  youth  apprenticeship  vocational  education
14    programs for secondary school  students  with  evidencing  an
15    interest  in  pursuing such career training.  The program may
16    be instituted by any school district seeking to  provide  its
17    secondary  school students with an opportunity to participate
18    in  Tech  Prep  work  based  learning  youth   apprenticeship
19    vocational  education programs or agency training programs in
20    which its secondary school students  shall  receive  academic
21    credit  for  work-related  training received at manufacturing
22    facilities or agencies.
23        (b)  Partnership for Careers grants.  The State Board  of
24    Education may make grants, subject to appropriations for such
25    purpose,  to  school  districts  to  be  used  for  Tech Prep
26    Partnership for  Careers  programs.   School  districts  must
27    submit  joint  applications  for the grants along with one or
28    more companies who commit to (i) make  off-campus,  privately
29    owned  facilities  available for the use of the program, (ii)
30    provide significant financial contributions to the program in
31    order to supplement State grants, and  (iii)  provide  career
SB1664 Enrolled            -2-                 LRB9010089THpk
 1    opportunities  for  students  who  successfully  complete the
 2    program training.  The State Board of  Education  may  use  a
 3    portion  of the funds appropriated for the program to promote
 4    its  availability  and  successes  with   school   districts,
 5    businesses, and communities.
 6    (Source: P.A. 88-270.)
 7        (105 ILCS 5/10-20.12a) (from Ch. 122, par. 10-20.12a)
 8        Sec.  10-20.12a.   Tuition  for  non-resident  pupils. To
 9    charge non-resident pupils who  attend  the  schools  of  the
10    district  tuition  in an amount not exceeding 110% of the per
11    capita cost of maintaining the schools of  the  district  for
12    the preceding school year.
13        Such  per  capita  cost shall be computed by dividing the
14    total cost of conducting and maintaining the schools  of  the
15    district  by  the average daily attendance, including tuition
16    pupils. Depreciation on the buildings and  equipment  of  the
17    schools   of   the   district,   and  the  amount  of  annual
18    depreciation  on  such  buildings  and  equipment  shall   be
19    dependent upon the useful life of such property.
20        The  tuition  charged shall in no case exceed 110% of the
21    per capita cost of conducting and maintaining the schools  of
22    the  district  attended,  as determined with reference to the
23    most  recent  audit  prepared  under  Section  3-7  which  is
24    available at the commencement of  the  current  school  year.
25    Non-resident pupils attending the schools of the district for
26    less   than   the   school  term  shall  have  their  tuition
27    apportioned, however pupils who become non-resident during  a
28    school term shall not be charged tuition for the remainder of
29    the school term in which they became non-resident pupils.
30        Unless  otherwise  agreed  to by the parties involved and
31    where the educational services  are  not  otherwise  provided
32    for,  educational  services for an Illinois student under the
33    age of 21  in  a  residential  program  designed  to  correct
SB1664 Enrolled            -3-                 LRB9010089THpk
 1    alcohol  or  other drug dependencies shall be provided by the
 2    district in which the facility is  located  and  financed  as
 3    follows.   The  cost of educational services shall be paid by
 4    the district in which the student resides in an amount  equal
 5    to  the cost of providing educational services in a treatment
 6    facility.  Payments shall be made  by  the  district  of  the
 7    student's residence and shall be made to the district wherein
 8    the  facility  is  located no less than once per month unless
 9    otherwise agreed to by the parties.  These provisions do  not
10    apply  to  any  disabled child eligible for special education
11    services under Article 14.
12    (Source: P.A. 89-397, eff. 8-20-95.)
13        Section 5.  The Private Business and  Vocational  Schools
14    Act  is  amended by changing Sections 1, 1.1, 10, 14.1, 15.1,
15    15.1a, and 15.2 as follows:
16        (105 ILCS 425/1) (from Ch. 144, par. 136)
17        Sec. 1.  Definitions.  As used in this  Act,  unless  the
18    context otherwise requires:
19        A "private business and vocational school" or "school" is
20    an educational institution privately owned and operated by an
21    owner,  partnership,  or  corporation,  offering  courses  of
22    instruction,  short courses, or subjects for which tuition is
23    charged, whether such courses of instruction, short  courses,
24    or  subjects  are  offered  by  in-residence, correspondence,
25    distance education, or other methods, to prepare individuals:
26        (1)  to follow a trade or artistic occupation;
27        (2)  to   pursue   a   manual,   mechanical,   technical,
28    industrial, business, commercial,  office,  personal  service
29    (other  than  nursing), or other non-professional occupation;
30    or
31        (3)  to follow a profession, if  the  profession  is  not
32    subject  to  licensing  or  registration  under  any existing
SB1664 Enrolled            -4-                 LRB9010089THpk
 1    statute of the State of Illinois requiring the  licensing  or
 2    registration  of persons practicing such profession or if the
 3    school is not approved and regulated by the agency with  such
 4    licensing or registration authority;
 5        (4)  to  improve,  enhance,  or  add  to  the  skills and
 6    abilities  of  the  individual   relative   to   occupational
 7    responsibilities or career opportunities.
 8        "Council"  means  the  Private  Business  and  Vocational
 9    Schools State Advisory Council created by this Act.
10        "Superintendent"   means   the  State  Superintendent  of
11    Education.
12        "Sales representative"  means  a  person  employed  by  a
13    school  as  defined  herein,  whether  such school is located
14    within or outside Illinois, to act as an agent, sales person,
15    broker or independent contractor to procure directly students
16    or enrollees for such school by solicitation in any form made
17    at any place in this State.
18        "Tuition" means any payment or compensation whether  paid
19    by  an  individual,  private organization or an agency of the
20    United States, State of Illinois or any political subdivision
21    thereof.
22        "Accrediting" refers to the  public  recognition  of  the
23    level  of  quality  of  an educational institution or program
24    that is granted by a legal entity.
25        "Accrediting agency" means a legal entity, or a  part  of
26    that  entity,  which  conducts  accrediting activities and is
27    designated  by  the  Secretary  of  the  U.S.  Department  of
28    Education pursuant to the provisions of the Higher  Education
29    Act of 1965 (P.L. 89-329) and related regulations.
30        "Adequate  Evaluation Service" means the process by which
31    a school provides prompt evaluation of all required tests and
32    materials  with  appropriate  comments  and  suggestions  for
33    correction of errors and apparent weaknesses and  the  prompt
34    return of such corrected materials to students concerned.
SB1664 Enrolled            -5-                 LRB9010089THpk
 1        "Board" is the State Board of Education.
 2        "Business  day"  is  any  calendar day except a Saturday,
 3    Sunday or legal  holiday;  provided  that  whenever  a  legal
 4    holiday  is  observed  on a Monday, that Monday also shall be
 5    deemed a legal holiday.
 6        "Certificate   of   approval"   is   a   non-transferable
 7    certificate issued under the authority of the State Board  of
 8    Education to a private business and vocational school located
 9    within  or without the State in the name of the school, which
10    authorizes the school to solicit students and  to  offer  and
11    maintain  a  course  of  instruction  in  compliance with the
12    provisions  of  this  Act  and  such  standards,  rules   and
13    regulations as may be promulgated by the Board.
14        "Change  of location" is a change in a school's principal
15    location, as distinguished from a change in the location of a
16    classroom extension.
17        "Change of  ownership"  is  a  change  in  the  financial
18    control  of  a  school  occurring  whenever  50% or more of a
19    school's stock or assets are sold to another party or parties
20    in one or a series of transactions  occurring  within  any  3
21    year period.
22        "Chief  managing  employee"  is the individual who is the
23    head administrator or  supervisor  at  a  school's  principal
24    location.
25        "Classroom    extension"   is   a   facility   used   for
26    instructional purposes either wholly or in part by  a  school
27    at a location different from the school's principal location.
28        "Course of instruction" is a program of study, education,
29    training  or instruction consisting of a series of lessons or
30    classes which  are  coordinated,  arranged,  or  packaged  to
31    constitute  a  subject,  curriculum or program of instruction
32    and sold collectively, so long  as  the  course  purports  to
33    prepare  or  qualify  individuals,  or improve or upgrade the
34    skills  individuals   need   (i)   for   employment,   career
SB1664 Enrolled            -6-                 LRB9010089THpk
 1    opportunities  or  any  specific  occupation, trade or in job
 2    position requiring manual, mechanical, technical, industrial,
 3    business, commercial, office, personal  service  (other  than
 4    nursing),  artistic,  or  other  non-professional  skills  or
 5    abilities, or (ii) for any profession which is not subject to
 6    licensing  or registration under any existing statute of this
 7    State.
 8        "Date of acceptance admission" is the date an  authorized
 9    school officer signs the enrollment agreement at the school's
10    principal location.
11        "Date  of admission" is the first scheduled date of class
12    attendance.
13        "Distance education" is a teaching and learning situation
14    in  which  (i)   the   instructor   and   the   learner   are
15    geographically  separated  and (ii) instruction and materials
16    are delivered or exchanged  or  delivered  and  exchanged  by
17    mail, electronic devices, or other means.
18        "Educational  institution"  is  any organization, whether
19    located within or  outside  of  this  State,  which  promotes
20    business   and   vocational   education,   even   though  the
21    institution's  principal  effort  may  not   be   exclusively
22    educational in nature.
23        "Eleemosynary institution" is a benevolent and charitable
24    educational  institution  deriving  a  majority of its income
25    from philanthropic gifts and charitable  contributions  which
26    are used to subsidize its educational program.
27        "Enrollment  agreement"  is  any agreement or instrument,
28    however named,  which  creates  or  evidences  an  obligation
29    binding  a student to purchase a course of instruction from a
30    school.
31        "Home  study  school"  is   a   school   which   provides
32    correspondence  lesson materials prepared in a sequential and
33    logical order for study and completion by a student on his or
34    her own, with completed lessons being returned by the student
SB1664 Enrolled            -7-                 LRB9010089THpk
 1    to the school for evaluation by  the  school,  with  comments
 2    added,  and subsequent return to the student, including those
 3    schools  which  offer  such  instruction  by  home  study  in
 4    combination with in-residence instruction.
 5        "Illinois  student"  is  any  student   contracting   for
 6    instruction  within this State at an Illinois or out-of-state
 7    private business and vocational school.
 8        "In-residence school" is any school offering  courses  of
 9    instruction to its students on the school's premises.
10        "Out-of-state  school"  is  any school, including both an
11    in-residence school and a home study school,  which  has  its
12    place  of  instruction  or its principal location outside the
13    boundaries of this State, or which offers or conducts courses
14    of instruction or subjects on premises of the school  located
15    outside  the  boundaries  of  this  State,  or which provides
16    correspondence or home study lesson materials from a location
17    outside the boundaries of  this  State,  or  which  evaluates
18    completed   lesson   materials   or  otherwise  conducts  its
19    evaluation service from a location outside the boundaries  of
20    this  State,  or  which otherwise offers or provides Illinois
21    students with courses  of  instruction  or  subjects  through
22    activities  engaged in or conducted outside the boundaries of
23    this State.
24        "Person" is an individual, corporation or other  business
25    entity.
26        "Placement assistance" is a an organized service provided
27    by   a   school  for  preparing  and  referring  students  to
28    prospective employers as a result of direct  contact  between
29    school placement officials and employer representatives.
30        "Refund  policy"  is  the  course of action followed by a
31    school  to  reimburse  unearned  tuition  to   students   not
32    completing a course of instruction.
33        "Religious  institution" is an educational institution of
34    a parochial or denominational character offering  courses  of
SB1664 Enrolled            -8-                 LRB9010089THpk
 1    instruction  which  are  religious or theological in whole or
 2    part and have a sectarian objective.
 3        "Short course" is a single course of study up to 20 clock
 4    hours  that  (i)  is  intended  to  improve  or  enhance   an
 5    individual's  vocational  skills, (ii) includes an assessment
 6    of  skill  development,  and  (iii)  may  result  in  only  a
 7    certificate of successful completion or attendance.
 8        "Specialized business and vocational degree" is an  award
 9    conferred  on  a  student who has successfully completed 2 or
10    more academic years or the equivalent thereof in  a  business
11    and  vocational  school with major emphasis on training for a
12    specific  job  or  the  development  of  occupational  skills
13    related to any of the vocational areas identified within  the
14    definition of a "school".
15        "Standards" refers to appropriate criteria established by
16    the  Board  and  used by the Superintendent to implement this
17    Act and such reasonable  rules  and  regulations  as  may  be
18    promulgated by the Board.
19        "Student   transcript  records"  are  permanent  academic
20    (educational) records used for reproducing transcript  copies
21    of  such  information  as  the student's dates of attendance,
22    courses and subjects of instruction, and grades.
23        "Subject" is an instructional division, taught separately
24    within a course of  instruction,  which  focuses  on  student
25    mastery of particular knowledge or skills.
26        "Supplementary  course of instruction" is a new course of
27    instruction added to the  list  of  such  courses  previously
28    approved by the Superintendent.
29    (Source: P.A. 85-1382.)
30        (105 ILCS 425/1.1) (from Ch. 144, par. 136.1)
31        Sec. 1.1.  Exemptions and annual filing.
32        (a)  For purposes of this Act, the following shall not be
33    considered to be a private business and vocational school:
SB1664 Enrolled            -9-                 LRB9010089THpk
 1        (1)  Any eleemosynary institution.
 2        (2)  Any religious institution.
 3        (3)  Any   public  educational  institution  exempt  from
 4    property taxation under the laws of this State.
 5        (4)  Any in-service course  of  instruction  and  subject
 6    offered  by  an  employer  provided no tuition is charged and
 7    such  instruction  is  offered  only  to  employees  of  such
 8    employer.
 9        (5)  Any educational institution which on  the  effective
10    date of this amendatory Act of 1984 is regulated solely by or
11    which  on June 30, 1991, is solely degree granting, enrolls a
12    majority of its  students  in  bachelors'  or  higher  degree
13    programs,  has  maintained  an  accredited  status  with  the
14    Commission  on  Institutions of Higher Education of the North
15    Central Association of Colleges and Schools, and is regulated
16    by the Illinois Board of Higher Education under  the  Private
17    College  Act  or  the Academic Degree Act, or which is exempt
18    from such regulation  under  either  of  the  foregoing  Acts
19    solely  for  the reason that such educational institution was
20    in operation on the effective date of either such Act.
21        (6)  Any  institution  and  the   franchisees   of   such
22    institution  which  offer exclusively a course of instruction
23    in income  tax  theory  or  return  preparation  at  a  total
24    contract  price of no more than $400, provided that the total
25    annual enrollment of such institution for all such courses of
26    instruction exceeds 500 students, and further  provided  that
27    the  total  contract  price  for all instruction offered to a
28    student in any one calendar year does not exceed $400.    For
29    each calendar year after 1990, the total contract price shall
30    be  adjusted,  rounded off to the nearest dollar, by the same
31    percentage as the increase or decrease in the  general  price
32    level  as  measured by the consumer price index for all urban
33    consumers for the United States, or its successor  index,  as
34    defined   and   officially  reported  by  the  United  States
SB1664 Enrolled            -10-                LRB9010089THpk
 1    Department of Labor, or its successor agency.  The change  in
 2    the  index shall be that as first published by the Department
 3    of Labor for the calendar year immediately preceding the year
 4    in which the total contract price is calculated.
 5        (b)  An institution exempted under subsection (a) of this
 6    Section must file with the Superintendent an annual financial
 7    report to demonstrate continued compliance by the institution
 8    with the requirements on which the exemption is based.
 9    (Source: P.A. 86-824; 87-1238.)
10        (105 ILCS 425/10) (from Ch. 144, par. 145)
11        Sec. 10.  Application fees - Renewal fees.  The following
12    nonrefundable fees  shall  be  paid  by  each  applicant  and
13    collected  by  the  Superintendent upon filing and receipt of
14    each of the applications specified below:
15    Original school application for a
16        certificate of approval.....................         $500
17    Initial school application for a
18        certificate of approval upon occurrence
19        of a change of ownership....................         $500
20    Annual school application for renewal
21        of a certificate of approval................         $250
22    School application for a change
23        of location.................................         $ 75
24    School application for a
25        classroom extension.........................         $150
26    School application for
27        supplementary courses
28        of instruction..............................         $150
29    School application for
30        a short course..............................          $50
31        An  applicant  school  which   has   not   remedied   all
32    deficiencies  cited by the Superintendent within 12 months of
33    the date of its original application  for  a  certificate  of
SB1664 Enrolled            -11-                LRB9010089THpk
 1    approval  shall  pay  an additional $500 original application
 2    fee  for  the  continued  cost  of   investigation   of   its
 3    application.
 4    (Source: P.A. 83-1484.)
 5        (105 ILCS 425/14.1) (from Ch. 144, par. 149.1)
 6        Sec.  14.1.   Annual  review.   The  Superintendent shall
 7    annually review and  investigate  all  approved  schools  and
 8    courses  of  instruction.   Consideration  shall  be given to
 9    complaints and information collected  by  the  Federal  Trade
10    Commission,  Better  Business  Bureaus, the Illinois Attorney
11    General's Office, any State's Attorney's Office, other  State
12    or  official  approval  agencies,  local school officials and
13    interested persons.  The Superintendent shall investigate all
14    written   complaints   about   a   school   or   its    sales
15    representatives  received  from  all affected persons and any
16    and all governmental  agencies.   Such  annual  review  shall
17    include  a  comparison  between  the graduation or completion
18    rate for the school and the graduation or completion rate for
19    the schools within the industry the school  represents,  such
20    as   business,  technical  or  vocational  schools,  for  the
21    reporting period of July 1 through June 30.  Any school  that
22    fails  to  maintain  a  graduation or completion rate greater
23    than 50% of the average graduation  or  completion  rate  for
24    schools within that industry shall be placed on probation for
25    one  year.   If  that  school's graduation or completion rate
26    fails to exceed  50%  of  the  average  graduation  rate  for
27    schools within that industry for that school's next reporting
28    period fiscal year, then the Superintendent shall revoke that
29    school's approval to operate in the State of Illinois.
30        In the event a school does not maintain a passage rate of
31    at  least  50% of the average passage rate for schools within
32    that  industry  for  any  State  licensing   examination   or
33    professional  certification  examination,  then  that  school
SB1664 Enrolled            -12-                LRB9010089THpk
 1    shall  be placed on probation for one year.  If that school's
 2    passage rate in its next reporting period  fiscal  year  does
 3    not  exceed  50% of the average passage rate of that class of
 4    school  as a whole, then the Superintendent shall revoke that
 5    school's approval to operate in the State of Illinois.
 6        The Superintendent shall develop by rule a  procedure  to
 7    ensure  the  veracity  of the information required under this
 8    Section.
 9    (Source: P.A. 85-1382.)
10        (105 ILCS 425/15.1) (from Ch. 144, par. 150.1)
11        Sec. 15.1.  Enrollment agreements.  Enrollment agreements
12    shall be used by schools approved by the Superintendent.  The
13    student shall be given a copy of the enrollment agreement  at
14    the  time  the student signs that agreement and shall include
15    the following written disclosures and  at  the  time  of  the
16    agreement's  acceptance,  if  those events occur at different
17    times. 2 copies shall be signed  by  the  student;  one  copy
18    shall  be  given to the student and The school shall retain a
19    signed the  other  copy  of  the  fully  executed  enrollment
20    agreement  as  a  part  of  the  student's  permanent record.
21    Enrollment agreements shall  include  the  following  written
22    disclosures:
23        (1)  The name and address of the school and the addresses
24    where instruction will be given;
25        (2)  The   name   and   description   of  the  course  of
26    instruction, including the number of home study  lessons  and
27    hours of classroom instruction;
28        (3)  The  total cost of the course of instruction and all
29    other services and facilities furnished or made available  to
30    the  student  by or through the school in connection with the
31    student's matriculation  and  study  and  completion  of  any
32    subject  or course of instruction, including all charges made
33    by the school for tuition, room and board, books,  materials,
SB1664 Enrolled            -13-                LRB9010089THpk
 1    supplies,   laboratory,  shop  and  studio  fees,  and  other
 2    expenses;
 3        (4)  A clear and conspicuous statement that the agreement
 4    is a legally binding instrument when signed  by  the  student
 5    and accepted by the school;
 6        (5)  A  clear  and conspicuous caption, "BUYER'S RIGHT TO
 7    CANCEL" under which it is explained that the student has  the
 8    right  to  cancel  the  initial  enrollment  agreement  until
 9    midnight of the fifth business day after the student has been
10    accepted admitted; and if the right to cancel is not given to
11    any  prospective student at the time the enrollment agreement
12    is signed, then the student  has  the  right  to  cancel  the
13    agreement at any time and receive a refund of all monies paid
14    to date within 10 days of cancellation;
15        (6)  A  notice  to  the  students  that  any cancellation
16    should  be  in  writing  and  must  be  delivered  to  school
17    management and given to the  registered  agent,  if  any,  or
18    managing employee of the school;
19        (7)  The  school's  refund  policy  for unearned tuition,
20    fees, and other charges;
21        (8)  The date of the student's signature and the date  of
22    the student's acceptance admission;
23        (9)  A   clear   and  conspicuous  statement  that  every
24    assignee of a student enrollment agreement takes  it  subject
25    to  all  claims and defenses of the student or his successors
26    in interest arising under the agreement;
27        (10)  The  name  of  the   school   employee   or   agent
28    responsible   for  procuring,  soliciting  or  enrolling  the
29    student;
30        (11)  A statement containing  the  following  information
31    for  the  most  recent  12  month  reporting period of July 1
32    through June 30:
33        (a)  The number of students who were admitted enrolled in
34    the course of instruction as of  July  1  of  that  reporting
SB1664 Enrolled            -14-                LRB9010089THpk
 1    period school during the school's last fiscal year;
 2        (b)  Additions during the year due to:
 3             (A)  new starts;
 4             (B)  re-enrollments; and
 5             (C)  transfers  into  the course of instruction from
 6        other courses of instruction at the school the number  of
 7        students  who  did not complete the course of instruction
 8        for which they enrolled during the school's  last  fiscal
 9        year;
10        (c)  Total   number   of  students  admitted  during  the
11    reporting period (the number of students reported under  item
12    (11)(a) plus the additions reported under parts (A), (B), and
13    (C)  of  item (11)(b)) the percentage of students who did not
14    complete the course of instruction for  which  they  enrolled
15    for  the  past  fiscal  year  as  compared  to  the number of
16    students who enrolled in the school during the school's  past
17    fiscal year;
18        (d)  Of  the  total course of instruction enrollment, the
19    number of students who:
20             (A)  transferred out of the course of instruction to
21        another course of instruction;
22             (B)  completed  or  graduated  from  a   course   of
23        instruction;
24             (C)  withdrew from the school;
25             (D)  are still enrolled the number and percentage of
26        students  from the particular school who passed the State
27        licensing examination (if any) during the  school's  last
28        fiscal year;
29        (e)  The number of students listed in item (11)(d) who
30             (A)  were placed in their field of study;
31             (B)  were placed in a related field;
32             (C)  placed out of the field;
33             (D)  were   not   available  for  placement  due  to
34        personal reasons;
SB1664 Enrolled            -15-                LRB9010089THpk
 1             (E)  were not employed the number and percentage  of
 2        graduates  who  requested  placement  assistance  by  the
 3        school during the school's last fiscal year;
 4        (f)  The  number  of  students who took a State licensing
 5    examination or  professional  certification  examination  (if
 6    any)  during  the reporting period, as well as the number who
 7    passed the number and percentage of  graduates  who  obtained
 8    employment  as a result of placement assistance by the school
 9    during the school's last fiscal year; such information may be
10    compiled by reasonable  efforts  of  the  school  to  contact
11    graduates by written correspondence;
12        (g)  The  number  and  percentage  of  graduates  of  the
13    particular  school  who  obtained employment in the field who
14    did not use the  school's  placement  assistance  during  the
15    reporting  period school's last fiscal year; such information
16    may be compiled  by  reasonable  efforts  of  the  school  to
17    contact graduates by written correspondence;
18        (h)  The average starting salary for all school graduates
19    employed  during  the  reporting  period school's last fiscal
20    year; such information may be compiled by reasonable  efforts
21    of the school to contact graduates by written correspondence;
22        (i)  The   following   clear   and  conspicuous  caption:
23    "COMPLAINTS AGAINST THIS SCHOOL MAY BE  REGISTERED  WITH  THE
24    STATE  BOARD  OF EDUCATION", set forth with the addresses and
25    telephone numbers of  the  Board's  Springfield  and  Chicago
26    offices.
27        An  alphabetical  list  of names, addresses, and dates of
28    admission by course or course of  instruction  and  a  sample
29    copy  of  the  enrollment  agreement  employed  to enroll the
30    students listed shall be filed with the Superintendent on  an
31    annual  basis.   The list shall be signed and verified by the
32    school's Chief Managing Employee.   The  list  shall  include
33    enrollments  from  the  period  of July 1 through June 30 and
34    shall be submitted within 90 days after the end of the period
SB1664 Enrolled            -16-                LRB9010089THpk
 1    A copy of each student enrollment agreement shall  be  signed
 2    by the student and filed with the Superintendent on an annual
 3    basis.  If the enrollment agreement is negotiated orally in a
 4    language  other  than  English,  then  copies  of  the  above
 5    disclosure  forms  shall be tendered in the language in which
 6    the contract was negotiated prior to executing the enrollment
 7    agreement.
 8        No school  shall  enter  into  any  enrollment  agreement
 9    wherein  the  student  waives the right to assert against the
10    school or any assignee any claim or defense  he  or  she  may
11    have  against  the  school  arising under the agreement.  Any
12    provisions in an enrollment  agreement  wherein  the  student
13    agrees to such waiver shall be rendered void.
14    (Source: P.A. 85-1382.)
15        (105 ILCS 425/15.1a) (from Ch. 144, par. 150.1a)
16        Sec.  15.1a.   The  Superintendent  shall issue rules and
17    regulations providing for the establishment  of  a  fair  and
18    equitable   refund  policy  for  each  private  business  and
19    vocational school.  Such refund policy shall provide that:
20        1.  Schools shall, when a student gives written notice of
21    cancellation, provide a refund in the amount of at least  the
22    following:
23        a.   When notice of cancellation is given before midnight
24    of the fifth business day within 6 days  after  the  date  of
25    enrollment   but  prior  to  the  first  day  of  class,  all
26    application-registration fees, tuition, and any other charges
27    shall be refunded to the student;
28        b.  When notice of cancellation is given  after  midnight
29    of  the  fifth  business  the  sixth day following acceptance
30    enrollment  but  prior  to  the  close  of  business  on  the
31    student's first day  of  class  attendance,  the  school  may
32    retain  no  more  than the application-registration fee which
33    may not exceed $150 or 50% of the cost of tuition,  whichever
SB1664 Enrolled            -17-                LRB9010089THpk
 1    is less $100;
 2        c.  When  notice  of  cancellation  is  given  after  the
 3    student's  completion  of  the first day of class attendance,
 4    but prior to the student's completion of 5% of the course  of
 5    instruction,      the      school      may     retain     the
 6    application-registration fee, an amount not to exceed 10%  of
 7    the   tuition   and  other  instructional  charges  or  $300,
 8    whichever  is  less,  and,  subject  to  the  limitations  of
 9    paragraph 12 of this Section, plus the cost of any  books  or
10    materials which have been provided by the school.
11        d.  When  a  student has completed in excess of 5% of the
12    course   of   instruction   the   school   may   retain   the
13    application-registration fee and the cost  of  any  books  or
14    materials  which  have  been provided by the school but shall
15    refund a part of the tuition and other instructional  charges
16    in accordance with whichever of the following applies:
17             (1) A.  A school which is accredited by a nationally
18        recognized  accrediting agency may use this policy or any
19        other refund policy filed with the  Superintendent  which
20        returns more money at each of the following levels of the
21        schedule  to  the student.  As used herein, a "nationally
22        recognized  accrediting  agency"  means  an   agency   or
23        association  designated  by  the  Secretary  of  the U.S.
24        Department of Education pursuant  to  provisions  of  the
25        Higher  Education  Act  of 1965 (P.L. 89-329) and related
26        regulations.
27             After 5% of the course of  instruction,  but  within
28        the  first  4 weeks of classes the school shall refund at
29        least 80% of the tuition;
30             During the first 25% of the course, the school shall
31        refund at least 55% of the tuition;
32             During the second 25% of the course the school shall
33        refund at least 30% of the tuition;
34             In cases of withdrawal after 50% of the course,  the
SB1664 Enrolled            -18-                LRB9010089THpk
 1        school may commit the student to the remaining obligation
 2        of tuition.
 3             As used herein, a "nationally recognized accrediting
 4        agency"  means an agency or association designated by the
 5        Secretary of the U.S. Department of Education pursuant to
 6        provisions of the Higher  Education  Act  of  1965  (P.L.
 7        89-329) and related regulations.
 8             (2)  B.  All  other  schools  regulated  under  this
 9        Section  may retain an amount computed prorata by days in
10        class plus 10% of tuition and other instructional charges
11        up to completion of 60% of  the  course  of  instruction.
12        When  the  student  has completed in excess of 60% of the
13        course  of  instruction,  the  school  may   retain   the
14        application/registration  fee  and the entire tuition and
15        other charges.
16             (3)  The refund policy for short courses  up  to  20
17        clock  hours shall refund prorata up to 60% completion of
18        the course.
19             (4)  All schools that offer courses  of  instruction
20        taught  by  distance education methods shall make refunds
21        to students who cancel their instruction in the following
22        manner:
23                  (A)  Students  who   enroll   in   a   distance
24             education   course   of  instruction  shall  have  5
25             business  days  from  the  date  of  their   initial
26             acceptance  to  cancel  the enrollment and receive a
27             complete refund of moneys paid to the school.
28                  (B)  Thereafter,  the  school  shall  retain  a
29             prorata amount based on the  percentage  of  lessons
30             completed,  up  to 60% of the course of instruction,
31             plus  10%   of   the   total   tuition   and   other
32             instructional charges.
33                  (C)  If  more  than  20%  of the lessons in the
34             course  of  instruction  are  completed  within  the
SB1664 Enrolled            -19-                LRB9010089THpk
 1             5-business-day  cooling  off  period,  the  distance
 2             education refund policy stated  above  applies  from
 3             the beginning of the first lesson completed.
 4                  (D)  Refunds  shall be based on the last lesson
 5             completed. use this policy  or  any  other  required
 6             policy  filed  with the Superintendent which returns
 7             more money at each of the following  levels  of  the
 8             schedule to the student:
 9      Percentage of days in class   Percentage of tuition
10      completed by student at       and other instructional
11      notice of cancellation:       charges which School
12                                    may retain:
13        in excess of 5% - 10%                   15%
14        in excess of 10% - 15%                  22%
15        in excess of 15% - 20%                  28%
16        in excess of 20% - 25%                  33%
17        in excess of 25% - 30%                  38%
18        in excess of 30% - 35%                  43%
19        in excess of 35% - 40%                  47%
20        in excess of 40% - 45%                  52%
21        in excess of 45% - 50%                  60%
22        in excess of 50% - 55%                  64%
23        in excess of 55% - 60%                  68%
24        in excess of 60% - 65%                  73%
25        in excess of 65% - 70%                  75%
26        in excess of 70% - 75%                  80%
27        in excess of 75% - 80%                  85%
28        When  notice  of  cancellation is given after the student
29    has completed over 80% of the course of instruction  measured
30    by    days    in   class,   the   school   may   retain   the
31    application-registration fee and the entire tuition and other
32    charges.
33        2.  A student, who on  personal  initiative  and  without
34    solicitation  enrolls,  starts,  and  completes  a  course of
SB1664 Enrolled            -20-                LRB9010089THpk
 1    instruction before midnight of the fifth business  the  sixth
 2    day  after the enrollment agreement is signed, is not subject
 3    to the cancellation refund provisions of this Section.
 4        3.  Applicants not accepted by the school shall receive a
 5    refund of all tuition and fees paid within 30  calendar  days
 6    after the determination of non-acceptance is made.
 7        4.  Application-registration  fees shall be chargeable at
 8    initial enrollment and shall not exceed $150 or  50%  of  the
 9    cost of tuition, whichever is less $100.00.
10        5.  Deposits  or  down  payments shall become part of the
11    tuition.
12        6.  The school shall mail a written acknowledgement of  a
13    student's  cancellation  or written withdrawal to the student
14    within 15 calendar days of the postmark date of notification.
15    Such written acknowledgement is not necessary if a refund has
16    been mailed to the student within the 15 calendar days.
17        7.  (Blank). If the  school  cancels  or  discontinues  a
18    course,  the  student shall have all tuition, fees, and other
19    charges refunded.
20        8.  All student refunds  shall  be  made  by  the  school
21    within  30  calendar  days  from  the  date of receipt of the
22    student's cancellation.
23        9.  A student may give  notice  of  cancellation  to  the
24    school  in writing. The unexplained absence of a student from
25    a school for  more  than  15  school  days  shall  constitute
26    constructive  notice  of  cancellation  to  the  school.  For
27    purposes of cancellation the date shall be the  last  day  of
28    attendance.
29        10.  A   school  may  make  refunds  which  exceed  those
30    prescribed in this Section. If the school has a refund policy
31    that returns more money to  a  student  than  those  policies
32    prescribed  in this Section, that refund policy must be filed
33    with the Superintendent.
34        11.  A school shall refund all monies paid to it  in  any
SB1664 Enrolled            -21-                LRB9010089THpk
 1    of the following circumstances:
 2        a.  (a)  the  school  did  not  provide  the  prospective
 3    student  with  a  copy  of  the  student's  valid  enrollment
 4    agreement and a current catalog or bulletin;
 5        b.  (b)  the school cancels or discontinues the course of
 6    instruction in which the student has enrolled;.
 7        c.  the school fails to conduct classes on days or  times
 8    scheduled, detrimentally affecting the student.
 9        12.  A  school  must  refund  any book and materials fees
10    when: (a) the book and materials are returned to  the  school
11    unmarked;  and (b) the student has provided the school with a
12    notice of cancellation.
13    (Source: P.A. 85-1382.)
14        (105 ILCS 425/15.2) (from Ch. 144, par. 150.2)
15        Sec. 15.2.  Placement  assistance.)   Each  school  which
16    offers or advertises a placement assistance for any course of
17    instruction  must file with the Superintendent it's placement
18    statistics for the most recent 12 month reporting  period  of
19    July 1 through June 30 or calendar year immediately preceding
20    to the date of the school's application for annual renewal of
21    its certificate of approval for every course of instruction.
22        All   schools   offering   or   advertising  a  placement
23    assistance shall disclose statistics for such 12 month period
24    or calendar year showing all  of  the  following:  number  of
25    students  enrolled,  the  number  of  students  who  did  not
26    complete  the  course of instruction for which they enrolled,
27    the number of students who graduated, the number of graduates
28    who  requested  placement  assistance,  and  the  number   of
29    graduates  who  received bona fide job offers for the job for
30    which they were trained.
31        (a)  The number of students  who  were  admitted  in  the
32    course of instruction as of July 1 of the reporting period.
33        (b)  Additions during the year due to:
SB1664 Enrolled            -22-                LRB9010089THpk
 1             (1)  new starts;
 2             (2)  re-enrollments; and
 3             (3)  transfers  into  the course of instruction from
 4        other courses of instruction at the school.
 5        (c)  Total  number  of  students  admitted   during   the
 6    reporting  period  in  item  (a)  plus the additions reported
 7    under parts (1), (2), and (3) of item (b).
 8        (d)  Of the total enrollment, the number of students who:
 9             (1)  transferred out of the course of instruction to
10        another course of instruction;
11             (2)  completed  or  graduated  from  a   course   of
12        instruction;
13             (3)  withdrew from the school;
14             (4)  are still enrolled.
15        (e)  The number of students listed in (d) who:
16             (1)  were placed in their field of study;
17             (2)  were placed in a related field;
18             (3)  placed out of the field;
19             (4)  were   not   available  for  placement  due  to
20        personal reasons;
21             (5)  were not employed.
22        (f)  The number of students who took the State  licensing
23    examination  or  professional  certification  examination (if
24    any) during the reporting period, as well as the  number  who
25    passed.
26        (g)  The  number  of graduates who obtained employment in
27    the field who did not use the school's  placement  assistance
28    during the reporting period; such information may be compiled
29    by  reasonable  efforts of the school to contact graduates by
30    written correspondence.
31        (h)  The average starting salary for all school graduates
32    employed during the reporting period; such information may be
33    compiled by reasonable  efforts  of  the  school  to  contact
34    graduates by written correspondence.
SB1664 Enrolled            -23-                LRB9010089THpk
 1        Before  a  student  signs  an  enrollment  agreement  the
 2    enrolling  representative  shall  disclose to the student the
 3    above statistical information for the  particular  course  of
 4    instruction offered for sale in the enrollment agreement.
 5        In  the  absence of placement statistics for a new course
 6    of instruction, the enrolling representative  shall  disclose
 7    to  the  student the placement statistics which represent the
 8    aggregate of all courses of instruction.
 9    (Source: P.A. 83-1484; 85-433; revised 3-9-98.)
10        Section 99.  Effective date.  This Act takes effect  upon
11    becoming law.

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