State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]


[ Introduced ][ Enrolled ][ House Amendment 001 ]
[ Senate Amendment 001 ][ Senate Amendment 002 ][ Senate Amendment 003 ]

90_SB1664eng

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

[ Top ]