State of Illinois
90th General Assembly
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90_SB1664sam001

                                           LRB9010089THpkam01
 1                    AMENDMENT TO SENATE BILL 1664
 2        AMENDMENT NO.     .  Amend Senate Bill 1664 by  replacing
 3    the title with the following:
 4        "AN  ACT  relating  to  private  business  and vocational
 5    schools, amending a named Act."; and
 6    by replacing everything after the enacting  clause  with  the
 7    following:
 8        "Section  5.  The Private Business and Vocational Schools
 9    Act is amended by changing Sections 1, 1.1, 10,  14.1,  15.1,
10    15.1a, and 15.2 as follows:
11        (105 ILCS 425/1) (from Ch. 144, par. 136)
12        Sec.  1.   Definitions.   As used in this Act, unless the
13    context otherwise requires:
14        A "private business and vocational school" or "school" is
15    an educational institution privately owned and operated by an
16    owner,  partnership,  or  corporation,  offering  courses  of
17    instruction, short courses, or subjects for which tuition  is
18    charged,  whether such courses of instruction, short courses,
19    or subjects  are  offered  by  in-residence,  correspondence,
20    distance education, or other methods, to prepare individuals:
21        (1)  to follow a trade or artistic occupation;
                            -2-            LRB9010089THpkam01
 1        (2)  to   pursue   a   manual,   mechanical,   technical,
 2    industrial,  business,  commercial,  office, personal service
 3    (other than nursing), or other  non-professional  occupation;
 4    or
 5        (3)  to  follow  a  profession,  if the profession is not
 6    subject to  licensing  or  registration  under  any  existing
 7    statute  of  the State of Illinois requiring the licensing or
 8    registration of persons practicing such profession or if  the
 9    school  is not approved and regulated by the agency with such
10    licensing or registration authority;
11        (4)  to improve,  enhance,  or  add  to  the  skills  and
12    abilities   of   the   individual  relative  to  occupational
13    responsibilities or career opportunities.
14        "Council"  means  the  Private  Business  and  Vocational
15    Schools State Advisory Council created by this Act.
16        "Superintendent"  means  the  State   Superintendent   of
17    Education.
18        "Sales  representative"  means  a  person  employed  by a
19    school as defined herein,  whether  such  school  is  located
20    within or outside Illinois, to act as an agent, sales person,
21    broker or independent contractor to procure directly students
22    or enrollees for such school by solicitation in any form made
23    at any place in this State.
24        "Tuition"  means any payment or compensation whether paid
25    by an individual, private organization or an  agency  of  the
26    United States, State of Illinois or any political subdivision
27    thereof.
28        "Accrediting"  refers  to  the  public recognition of the
29    level of quality of an  educational  institution  or  program
30    that is granted by a legal entity.
31        "Accrediting  agency"  means a legal entity, or a part of
32    that entity, which conducts  accrediting  activities  and  is
33    designated  by  the  Secretary  of  the  U.S.  Department  of
34    Education  pursuant to the provisions of the Higher Education
                            -3-            LRB9010089THpkam01
 1    Act of 1965 (P.L. 89-329) and related regulations.
 2        "Adequate Evaluation Service" means the process by  which
 3    a school provides prompt evaluation of all required tests and
 4    materials  with  appropriate  comments  and  suggestions  for
 5    correction  of  errors and apparent weaknesses and the prompt
 6    return of such corrected materials to students concerned.
 7        "Board" is the State Board of Education.
 8        "Business day" is any calendar  day  except  a  Saturday,
 9    Sunday  or  legal  holiday;  provided  that  whenever a legal
10    holiday is observed on a Monday, that Monday  also  shall  be
11    deemed a legal holiday.
12        "Certificate   of   approval"   is   a   non-transferable
13    certificate  issued under the authority of the State Board of
14    Education to a private business and vocational school located
15    within or without the State in the name of the school,  which
16    authorizes  the  school  to solicit students and to offer and
17    maintain a course  of  instruction  in  compliance  with  the
18    provisions   of  this  Act  and  such  standards,  rules  and
19    regulations as may be promulgated by the Board.
20        "Change of location" is a change in a school's  principal
21    location, as distinguished from a change in the location of a
22    classroom extension.
23        "Change  of  ownership"  is  a  change  in  the financial
24    control of a school occurring  whenever  50%  or  more  of  a
25    school's stock or assets are sold to another party or parties
26    in  one  or  a  series of transactions occurring within any 3
27    year period.
28        "Chief managing employee" is the individual  who  is  the
29    head  administrator  or  supervisor  at  a school's principal
30    location.
31        "Classroom   extension"   is   a   facility   used    for
32    instructional  purposes  either wholly or in part by a school
33    at a location different from the school's principal location.
34        "Course of instruction" is a program of study, education,
                            -4-            LRB9010089THpkam01
 1    training or instruction consisting of a series of lessons  or
 2    classes  which  are  coordinated,  arranged,  or  packaged to
 3    constitute a subject, curriculum or  program  of  instruction
 4    and  sold  collectively,  so  long  as the course purports to
 5    prepare or qualify individuals, or  improve  or  upgrade  the
 6    skills   individuals   need   (i)   for   employment,  career
 7    opportunities or any specific occupation,  trade  or  in  job
 8    position requiring manual, mechanical, technical, industrial,
 9    business,  commercial,  office,  personal service (other than
10    nursing),  artistic,  or  other  non-professional  skills  or
11    abilities, or (ii) for any profession which is not subject to
12    licensing or registration under any existing statute of  this
13    State.
14        "Date  of acceptance admission" is the date an authorized
15    school officer signs the enrollment agreement at the school's
16    principal location.
17        "Date of admission" is the first scheduled date of  class
18    attendance.
19        "Distance education" is a teaching and learning situation
20    in   which   (i)   the   instructor   and   the  learner  are
21    geographically separated and (ii) instruction  and  materials
22    are  delivered  or  exchanged  or  delivered and exchanged by
23    mail, electronic devices, or other means.
24        "Educational institution" is  any  organization,  whether
25    located  within  or  outside  of  this  State, which promotes
26    business  and   vocational   education,   even   though   the
27    institution's   principal   effort  may  not  be  exclusively
28    educational in nature.
29        "Eleemosynary institution" is a benevolent and charitable
30    educational institution deriving a  majority  of  its  income
31    from  philanthropic  gifts and charitable contributions which
32    are used to subsidize its educational program.
33        "Enrollment agreement" is any  agreement  or  instrument,
34    however  named,  which  creates  or  evidences  an obligation
                            -5-            LRB9010089THpkam01
 1    binding a student to purchase a course of instruction from  a
 2    school.
 3        "Home   study   school"   is   a  school  which  provides
 4    correspondence lesson materials prepared in a sequential  and
 5    logical order for study and completion by a student on his or
 6    her own, with completed lessons being returned by the student
 7    to  the  school  for  evaluation by the school, with comments
 8    added, and subsequent return to the student, including  those
 9    schools  which  offer  such  instruction  by  home  study  in
10    combination with in-residence instruction.
11        "Illinois   student"   is  any  student  contracting  for
12    instruction within this State at an Illinois or  out-of-state
13    private business and vocational school.
14        "In-residence  school"  is any school offering courses of
15    instruction to its students on the school's premises.
16        "Out-of-state school" is any school,  including  both  an
17    in-residence  school  and  a home study school, which has its
18    place of instruction or its principal  location  outside  the
19    boundaries of this State, or which offers or conducts courses
20    of  instruction or subjects on premises of the school located
21    outside the boundaries  of  this  State,  or  which  provides
22    correspondence or home study lesson materials from a location
23    outside  the  boundaries  of  this  State, or which evaluates
24    completed  lesson  materials  or   otherwise   conducts   its
25    evaluation  service from a location outside the boundaries of
26    this State, or which otherwise offers  or  provides  Illinois
27    students  with  courses  of  instruction  or subjects through
28    activities engaged in or conducted outside the boundaries  of
29    this State.
30        "Person"  is an individual, corporation or other business
31    entity.
32        "Placement assistance" is a an organized service provided
33    by  a  school  for  preparing  and  referring   students   to
34    prospective  employers  as a result of direct contact between
                            -6-            LRB9010089THpkam01
 1    school placement officials and employer representatives.
 2        "Refund policy" is the course of  action  followed  by  a
 3    school   to   reimburse  unearned  tuition  to  students  not
 4    completing a course of instruction.
 5        "Religious institution" is an educational institution  of
 6    a  parochial  or denominational character offering courses of
 7    instruction which are religious or theological  in  whole  or
 8    part and have a sectarian objective.
 9        "Short course" is a single course of study up to 20 clock
10    hours   that  (i)  is  intended  to  improve  or  enhance  an
11    individual's vocational skills, (ii) includes  an  assessment
12    of  skill  development,  and  (iii)  may  result  in  only  a
13    certificate of successful completion or attendance.
14        "Specialized  business and vocational degree" is an award
15    conferred on a student who has successfully  completed  2  or
16    more  academic  years or the equivalent thereof in a business
17    and vocational school with major emphasis on training  for  a
18    specific  job  or  the  development  of  occupational  skills
19    related  to any of the vocational areas identified within the
20    definition of a "school".
21        "Standards" refers to appropriate criteria established by
22    the Board and used by the Superintendent  to  implement  this
23    Act  and  such  reasonable  rules  and  regulations as may be
24    promulgated by the Board.
25        "Student  transcript  records"  are  permanent   academic
26    (educational)  records used for reproducing transcript copies
27    of such information as the  student's  dates  of  attendance,
28    courses and subjects of instruction, and grades.
29        "Subject" is an instructional division, taught separately
30    within  a  course  of  instruction,  which focuses on student
31    mastery of particular knowledge or skills.
32        "Supplementary course of instruction" is a new course  of
33    instruction  added  to  the  list  of such courses previously
34    approved by the Superintendent.
                            -7-            LRB9010089THpkam01
 1    (Source: P.A. 85-1382.)
 2        (105 ILCS 425/1.1) (from Ch. 144, par. 136.1)
 3        Sec. 1.1.  Exemptions and annual filing.
 4        (a)  For purposes of this Act, the following shall not be
 5    considered to be a private business and vocational school:
 6        (1)  Any eleemosynary institution.
 7        (2)  Any religious institution.
 8        (3)  Any  public  educational  institution  exempt   from
 9    property taxation under the laws of this State.
10        (4)  Any  in-service  course  of  instruction and subject
11    offered by an employer provided no  tuition  is  charged  and
12    such  instruction  is  offered  only  to  employees  of  such
13    employer.
14        (5)  Any  educational  institution which on the effective
15    date of this amendatory Act of 1984 is regulated solely by or
16    which on June 30, 1991, is solely degree granting, enrolls  a
17    majority  of  its  students  in  bachelors'  or higher degree
18    programs,  has  maintained  an  accredited  status  with  the
19    Commission on Institutions of Higher Education of  the  North
20    Central Association of Colleges and Schools, and is regulated
21    by  the  Illinois Board of Higher Education under the Private
22    College Act or the Academic Degree Act, or  which  is  exempt
23    from  such  regulation  under  either  of  the foregoing Acts
24    solely for the reason that such educational  institution  was
25    in operation on the effective date of either such Act.
26        (6)  Any   institution   and   the  franchisees  of  such
27    institution which offer exclusively a course  of  instruction
28    in  income  tax  theory  or  return  preparation  at  a total
29    contract price of no more than $400, provided that the  total
30    annual enrollment of such institution for all such courses of
31    instruction  exceeds  500 students, and further provided that
32    the total contract price for all  instruction  offered  to  a
33    student  in  any one calendar year does not exceed $400.  For
                            -8-            LRB9010089THpkam01
 1    each calendar year after 1990, the total contract price shall
 2    be adjusted, rounded off to the nearest dollar, by  the  same
 3    percentage  as  the increase or decrease in the general price
 4    level as measured by the consumer price index for  all  urban
 5    consumers  for  the United States, or its successor index, as
 6    defined  and  officially  reported  by  the   United   States
 7    Department  of Labor, or its successor agency.  The change in
 8    the index shall be that as first published by the  Department
 9    of Labor for the calendar year immediately preceding the year
10    in which the total contract price is calculated.
11        (b)  An institution exempted under subsection (a) of this
12    Section must file with the Superintendent an annual financial
13    report to demonstrate continued compliance by the institution
14    with the requirements on which the exemption is based.
15    (Source: P.A. 86-824; 87-1238.)
16        (105 ILCS 425/10) (from Ch. 144, par. 145)
17        Sec. 10.  Application fees - Renewal fees.  The following
18    nonrefundable  fees  shall  be  paid  by  each  applicant and
19    collected by the Superintendent upon filing  and  receipt  of
20    each of the applications specified below:
21    Original school application for a
22        certificate of approval.....................         $500
23    Initial school application for a
24        certificate of approval upon occurrence
25        of a change of ownership....................         $500
26    Annual school application for renewal
27        of a certificate of approval................         $250
28    School application for a change
29        of location.................................         $ 75
30    School application for a
31        classroom extension.........................         $150
32    School application for
33        supplementary courses
                            -9-            LRB9010089THpkam01
 1        of instruction..............................         $150
 2    School application for
 3        a short course..............................          $50
 4        An   applicant   school   which   has  not  remedied  all
 5    deficiencies cited by the Superintendent within 12 months  of
 6    the  date  of  its  original application for a certificate of
 7    approval shall pay an additional  $500  original  application
 8    fee   for   the   continued  cost  of  investigation  of  its
 9    application.
10    (Source: P.A. 83-1484.)
11        (105 ILCS 425/14.1) (from Ch. 144, par. 149.1)
12        Sec. 14.1.   Annual  review.   The  Superintendent  shall
13    annually  review  and  investigate  all  approved schools and
14    courses of instruction.   Consideration  shall  be  given  to
15    complaints  and  information  collected  by the Federal Trade
16    Commission, Better Business Bureaus,  the  Illinois  Attorney
17    General's  Office, any State's Attorney's Office, other State
18    or official approval agencies,  local  school  officials  and
19    interested persons.  The Superintendent shall investigate all
20    written    complaints   about   a   school   or   its   sales
21    representatives received from all affected  persons  and  any
22    and  all  governmental  agencies.   Such  annual review shall
23    include a comparison between  the  graduation  or  completion
24    rate for the school and the graduation or completion rate for
25    the  schools  within the industry the school represents, such
26    as  business,  technical  or  vocational  schools,  for   the
27    reporting  period of July 1 through June 30.  Any school that
28    fails to maintain a graduation  or  completion  rate  greater
29    than  50%  of  the  average graduation or completion rate for
30    schools within that industry shall be placed on probation for
31    one year.  If that school's  graduation  or  completion  rate
32    fails  to  exceed  50%  of  the  average  graduation rate for
33    schools within that industry for that school's next reporting
                            -10-           LRB9010089THpkam01
 1    period fiscal year, then the Superintendent shall revoke that
 2    school's approval to operate in the State of Illinois.
 3        In the event a school does not maintain a passage rate of
 4    at least 50% of the average passage rate for  schools  within
 5    that   industry   for  any  State  licensing  examination  or
 6    professional  certification  examination,  then  that  school
 7    shall be placed on probation for one year.  If that  school's
 8    passage  rate  in  its next reporting period fiscal year does
 9    not exceed 50% of the average passage rate of that  class  of
10    school  as a whole, then the Superintendent shall revoke that
11    school's approval to operate in the State of Illinois.
12        The  Superintendent  shall develop by rule a procedure to
13    ensure the veracity of the information  required  under  this
14    Section.
15    (Source: P.A. 85-1382.)
16        (105 ILCS 425/15.1) (from Ch. 144, par. 150.1)
17        Sec. 15.1.  Enrollment agreements.  Enrollment agreements
18    shall be used by schools approved by the Superintendent.  The
19    student  shall be given a copy of the enrollment agreement at
20    the time the student signs that agreement and  shall  include
21    the  following  written  disclosures  and  at the time of the
22    agreement's acceptance, if those events  occur  at  different
23    times.  2  copies  shall  be  signed by the student; one copy
24    shall be given to the student and The school shall  retain  a
25    signed  the  other  copy  of  the  fully  executed enrollment
26    agreement as  a  part  of  the  student's  permanent  record.
27    Enrollment  agreements  shall  include  the following written
28    disclosures:
29        (1)  The name and address of the school and the addresses
30    where instruction will be given;
31        (2)  The  name  and  description   of   the   course   of
32    instruction,  including  the number of home study lessons and
33    hours of classroom instruction;
                            -11-           LRB9010089THpkam01
 1        (3)  The total cost of the course of instruction and  all
 2    other  services and facilities furnished or made available to
 3    the student by or through the school in connection  with  the
 4    student's  matriculation  and  study  and  completion  of any
 5    subject or course of instruction, including all charges  made
 6    by  the school for tuition, room and board, books, materials,
 7    supplies,  laboratory,  shop  and  studio  fees,  and   other
 8    expenses;
 9        (4)  A clear and conspicuous statement that the agreement
10    is  a  legally  binding instrument when signed by the student
11    and accepted by the school;
12        (5)  A clear and conspicuous caption, "BUYER'S  RIGHT  TO
13    CANCEL"  under which it is explained that the student has the
14    right  to  cancel  the  initial  enrollment  agreement  until
15    midnight of the fifth business day after the student has been
16    accepted admitted; and if the right to cancel is not given to
17    any prospective student at the time the enrollment  agreement
18    is  signed,  then  the  student  has  the right to cancel the
19    agreement at any time and receive a refund of all monies paid
20    to date within 10 days of cancellation;
21        (6)  A notice  to  the  students  that  any  cancellation
22    should  be  in  writing  and  must  be  delivered  to  school
23    management  and  given  to  the  registered agent, if any, or
24    managing employee of the school;
25        (7)  The school's refund  policy  for  unearned  tuition,
26    fees, and other charges;
27        (8)  The  date of the student's signature and the date of
28    the student's acceptance admission;
29        (9)  A  clear  and  conspicuous  statement   that   every
30    assignee  of  a student enrollment agreement takes it subject
31    to all claims and defenses of the student or  his  successors
32    in interest arising under the agreement;
33        (10)  The   name   of   the   school  employee  or  agent
34    responsible  for  procuring,  soliciting  or  enrolling   the
                            -12-           LRB9010089THpkam01
 1    student;
 2        (11)  A  statement  containing  the following information
 3    for the most recent 12  month  reporting  period  of  July  1
 4    through June 30:
 5        (a)  The number of students who were admitted enrolled in
 6    the  course  of  instruction  as  of July 1 of that reporting
 7    period school during the school's last fiscal year;
 8        (b)  Additions during the year due to:
 9             (A)  new starts;
10             (B)  re-enrollments; and
11             (C)  transfers into the course of  instruction  from
12        other  courses of instruction at the school the number of
13        students who did not complete the course  of  instruction
14        for  which  they enrolled during the school's last fiscal
15        year;
16        (c)  Total  number  of  students  admitted   during   the
17    reporting  period (the number of students reported under item
18    (11)(a) plus the additions reported under parts (A), (B), and
19    (C) of item (11)(b)) the percentage of students who  did  not
20    complete  the  course  of instruction for which they enrolled
21    for the past  fiscal  year  as  compared  to  the  number  of
22    students  who enrolled in the school during the school's past
23    fiscal year;
24        (d)  Of the total course of instruction  enrollment,  the
25    number of students who:
26             (A)  transferred out of the course of instruction to
27        another course of instruction;
28             (B)  completed   or   graduated  from  a  course  of
29        instruction;
30             (C)  withdrew from the school;
31             (D)  are still enrolled the number and percentage of
32        students from the particular school who passed the  State
33        licensing  examination  (if any) during the school's last
34        fiscal year;
                            -13-           LRB9010089THpkam01
 1        (e)  The number of students listed in item (11)(d) who
 2             (A)  were placed in their field of study;
 3             (B)  were placed in a related field;
 4             (C)  placed out of the field;
 5             (D)  were  not  available  for  placement   due   to
 6        personal reasons;
 7             (E)  were  not employed the number and percentage of
 8        graduates  who  requested  placement  assistance  by  the
 9        school during the school's last fiscal year;
10        (f)  The number of students who took  a  State  licensing
11    examination  or  professional  certification  examination (if
12    any) during the reporting period, as well as the  number  who
13    passed  the  number  and percentage of graduates who obtained
14    employment as a result of placement assistance by the  school
15    during the school's last fiscal year; such information may be
16    compiled  by  reasonable  efforts  of  the  school to contact
17    graduates by written correspondence;
18        (g)  The  number  and  percentage  of  graduates  of  the
19    particular school who obtained employment in  the  field  who
20    did  not  use  the  school's  placement assistance during the
21    reporting period school's last fiscal year; such  information
22    may  be  compiled  by  reasonable  efforts  of  the school to
23    contact graduates by written correspondence;
24        (h)  The average starting salary for all school graduates
25    employed during the reporting  period  school's  last  fiscal
26    year;  such information may be compiled by reasonable efforts
27    of the school to contact graduates by written correspondence;
28        (i)  The  following  clear   and   conspicuous   caption:
29    "COMPLAINTS  AGAINST  THIS  SCHOOL MAY BE REGISTERED WITH THE
30    STATE BOARD OF EDUCATION", set forth with the  addresses  and
31    telephone  numbers  of  the  Board's  Springfield and Chicago
32    offices.
33        An alphabetical list of names, addresses,  and  dates  of
34    admission  by  course  or  course of instruction and a sample
                            -14-           LRB9010089THpkam01
 1    copy of the  enrollment  agreement  employed  to  enroll  the
 2    students  listed shall be filed with the Superintendent on an
 3    annual basis.  The list shall be signed and verified  by  the
 4    school's  Chief  Managing  Employee.   The list shall include
 5    enrollments from the period of July 1  through  June  30  and
 6    shall be submitted within 90 days after the end of the period
 7    A  copy  of each student enrollment agreement shall be signed
 8    by the student and filed with the Superintendent on an annual
 9    basis.  If the enrollment agreement is negotiated orally in a
10    language  other  than  English,  then  copies  of  the  above
11    disclosure forms shall be tendered in the language  in  which
12    the contract was negotiated prior to executing the enrollment
13    agreement.
14        No  school  shall  enter  into  any  enrollment agreement
15    wherein the student waives the right to  assert  against  the
16    school  or  any  assignee  any claim or defense he or she may
17    have against the school arising under  the  agreement.    Any
18    provisions  in  an  enrollment  agreement wherein the student
19    agrees to such waiver shall be rendered void.
20    (Source: P.A. 85-1382.)
21        (105 ILCS 425/15.1a) (from Ch. 144, par. 150.1a)
22        Sec. 15.1a.  The Superintendent  shall  issue  rules  and
23    regulations  providing  for  the  establishment of a fair and
24    equitable  refund  policy  for  each  private  business   and
25    vocational school.  Such refund policy shall provide that:
26        1.  Schools shall, when a student gives written notice of
27    cancellation,  provide a refund in the amount of at least the
28    following:
29        a.  When notice of cancellation is given before  midnight
30    of  the  fifth  business  day within 6 days after the date of
31    enrollment  but  prior  to  the  first  day  of  class,   all
32    application-registration fees, tuition, and any other charges
33    shall be refunded to the student;
                            -15-           LRB9010089THpkam01
 1        b.   When  notice of cancellation is given after midnight
 2    of the fifth business  the  sixth  day  following  acceptance
 3    enrollment  but  prior  to  the  close  of  business  on  the
 4    student's  first  day  of  class  attendance,  the school may
 5    retain no more than the  application-registration  fee  which
 6    may  not exceed $150 or 50% of the cost of tuition, whichever
 7    is less $100;
 8        c.  When  notice  of  cancellation  is  given  after  the
 9    student's completion of the first day  of  class  attendance,
10    but  prior to the student's completion of 5% of the course of
11    instruction,     the     school      may      retain      the
12    application-registration  fee, an amount not to exceed 10% of
13    the  tuition  and  other  instructional  charges   or   $300,
14    whichever  is  less,  plus the cost of any books or materials
15    which have been provided by the school.
16        d.  When a student has completed in excess of 5%  of  the
17    course   of   instruction   the   school   may   retain   the
18    application-registration  fee  and  the  cost of any books or
19    materials which have been provided by the  school  but  shall
20    refund  a part of the tuition and other instructional charges
21    in accordance with whichever of the following applies: (1) no
22    cost to the student for books upon withdrawal, if the cost is
23    not noted on the enrollment agreement; (2)  no  cost  to  the
24    student  for  books and materials to be issued for subsequent
25    subjects; or (3) books must be returned unmarked  for  refund
26    of charges:
27             (1) A.  A school which is accredited by a nationally
28        recognized  accrediting agency may use this policy or any
29        other refund policy filed with the  Superintendent  which
30        returns more money at each of the following levels of the
31        schedule to the student.
32             After  5%  of  the course of instruction, but within
33        the first 4 weeks of classes the school shall  refund  at
34        least 80% of the tuition;
                            -16-           LRB9010089THpkam01
 1             During the first 25% of the course, the school shall
 2        refund at least 55% of the tuition;
 3             During the second 25% of the course the school shall
 4        refund at least 30% of the tuition;
 5             In  cases of withdrawal after 50% of the course, the
 6        school may commit the student to the remaining obligation
 7        of tuition.
 8             As used herein, a "nationally recognized accrediting
 9        agency" means an agency or association designated by  the
10        Secretary of the U.S. Department of Education pursuant to
11        provisions  of  the  Higher  Education  Act of 1965 (P.L.
12        89-329) and related regulations.
13             (2)  B.  All  other  schools  regulated  under  this
14        Section except those noted below may use this  policy  or
15        any  other  required policy filed with the Superintendent
16        which returns more money at each of the following  levels
17        of the schedule to the student:
18        The  school may retain an amount computed prorata by days
19    in class plus 10% of tuition and other instructional  charges
20    up  to  completion of 60% of the course of instruction.  When
21    the student has completed in excess of 60% of the  course  of
22    instruction,      the      school      may     retain     the
23    application/registration fee and the entire tuition and other
24    charges.
25             (3)  The refund policy for short courses  up  to  20
26        clock  hours shall be prorata up to 60% completion of the
27        course.
28             (4)  Courses  of  instruction  taught  by   distance
29        education  methods  shall  make  refunds  to students who
30        cancel their instruction in the following manner:
31                  (A)  Students  who   enroll   in   a   distance
32             education   course   of  instruction  shall  have  5
33             business  days  from  the  date  of  their   initial
34             acceptance  to  cancel  the enrollment and receive a
                            -17-           LRB9010089THpkam01
 1             complete refund of moneys paid to the school.
 2                  (B)  Thereafter,  the  school  shall  retain  a
 3             prorata amount based on the  percentage  of  lessons
 4             completed,  up  to 60% of the course of instruction,
 5             plus  10%   of   the   total   tuition   and   other
 6             instructional charges.
 7                  (C)  If  more  than  20%  of the lessons in the
 8             course  of  instruction  are  completed  within  the
 9             5-business-day  cooling  off  period,  the  distance
10             education refund policy stated  above  applies  from
11             the beginning of the first lesson completed.
12                  (D)  Refunds  shall be based on the last lesson
13             completed.
14      Percentage of days in class   Percentage of tuition
15      completed by student at       and other instructional
16      notice of cancellation:       charges which School
17                                    may retain:
18        in excess of 5% - 10%                   15%
19        in excess of 10% - 15%                  22%
20        in excess of 15% - 20%                  28%
21        in excess of 20% - 25%                  33%
22        in excess of 25% - 30%                  38%
23        in excess of 30% - 35%                  43%
24        in excess of 35% - 40%                  47%
25        in excess of 40% - 45%                  52%
26        in excess of 45% - 50%                  60%
27        in excess of 50% - 55%                  64%
28        in excess of 55% - 60%                  68%
29        in excess of 60% - 65%                  73%
30        in excess of 65% - 70%                  75%
31        in excess of 70% - 75%                  80%
32        in excess of 75% - 80%                  85%
33        When notice of cancellation is given  after  the  student
34    has  completed over 80% of the course of instruction measured
                            -18-           LRB9010089THpkam01
 1    by   days   in   class,   the   school   may    retain    the
 2    application-registration fee and the entire tuition and other
 3    charges.
 4        2.  A  student,  who  on  personal initiative and without
 5    solicitation enrolls,  starts,  and  completes  a  course  of
 6    instruction  before  midnight of the fifth business the sixth
 7    day after the enrollment agreement is signed, is not  subject
 8    to the cancellation refund provisions of this Section.
 9        3.  Applicants not accepted by the school shall receive a
10    refund  of  all tuition and fees paid within 30 calendar days
11    after the determination of non-acceptance is made.
12        4.  Application-registration fees shall be chargeable  at
13    initial  enrollment  and  shall not exceed $150 or 50% of the
14    cost of tuition, whichever is less $100.00.
15        5.  Deposits or down payments shall become  part  of  the
16    tuition.
17        6.  The  school shall mail a written acknowledgement of a
18    student's cancellation or written withdrawal to  the  student
19    within 15 calendar days of the postmark date of notification.
20    Such written acknowledgement is not necessary if a refund has
21    been mailed to the student within the 15 calendar days.
22        7.  (Blank).  If  the  school  cancels  or discontinues a
23    course, the student shall have all tuition, fees,  and  other
24    charges refunded.
25        8.  All  student  refunds  shall  be  made  by the school
26    within 30 calendar days from  the  date  of  receipt  of  the
27    student's cancellation.
28        9.  A  student  may  give  notice  of cancellation to the
29    school in writing. The unexplained absence of a student  from
30    a  school  for  more  than  15  school  days shall constitute
31    constructive notice  of  cancellation  to  the  school.   For
32    purposes  of  cancellation  the date shall be the last day of
33    attendance.
34        10.  A  school  may  make  refunds  which  exceed   those
                            -19-           LRB9010089THpkam01
 1    prescribed in this Section.
 2        11.  A  school  shall refund all monies paid to it in any
 3    of the following circumstances:
 4        a.  (a)  the  school  did  not  provide  the  prospective
 5    student  with  a  copy  of  the  student's  valid  enrollment
 6    agreement and a current catalog or bulletin;
 7        b. (b)  the school cancels or discontinues the course  of
 8    instruction in which the student has enrolled;.
 9        c.  the  school fails to conduct classes on days or times
10    scheduled, detrimentally affecting the student.
11    (Source: P.A. 85-1382.)
12        (105 ILCS 425/15.2) (from Ch. 144, par. 150.2)
13        Sec. 15.2.  Placement  assistance.)   Each  school  which
14    offers or advertises a placement assistance for any course of
15    instruction  must file with the Superintendent it's placement
16    statistics for the most recent 12 month reporting  period  of
17    July 1 through June 30 or calendar year immediately preceding
18    to the date of the school's application for annual renewal of
19    its certificate of approval for every course of instruction.
20        All   schools   offering   or   advertising  a  placement
21    assistance shall disclose statistics for such 12 month period
22    or calendar year showing all  of  the  following:  number  of
23    students  enrolled,  the  number  of  students  who  did  not
24    complete  the  course of instruction for which they enrolled,
25    the number of students who graduated, the number of graduates
26    who  requested  placement  assistance,  and  the  number   of
27    graduates  who  received bona fide job offers for the job for
28    which they were trained.
29        (a)  The number of students  who  were  admitted  in  the
30    course of instruction as of July 1 of the reporting period.
31        (b)  Additions during the year due to:
32             (1)  new starts;
33             (2)  re-enrollments; and
                            -20-           LRB9010089THpkam01
 1             (3)  transfers  into  the course of instruction from
 2        other courses of instruction at the school.
 3        (c)  Total  number  of  students  admitted   during   the
 4    reporting  period  in  item  (a)  plus the additions reported
 5    under parts (1), (2), and (3) of item (b).
 6        (d)  Of the total enrollment, the number of students who:
 7             (1)  transferred out of the course of instruction to
 8        another course of instruction;
 9             (2)  completed  or  graduated  from  a   course   of
10        instruction;
11             (3)  withdrew from the school;
12             (4)  are still enrolled.
13        (e)  The number of students listed in (d) who:
14             (1)  were placed in their field of study;
15             (2)  were placed in a related field;
16             (3)  placed out of the field;
17             (4)  were   not   available  for  placement  due  to
18        personal reasons;
19             (5)  were not employed.
20        (f)  The number of students who took the State  licensing
21    examination  or  professional  certification  examination (if
22    any) during the reporting period, as well as the  number  who
23    passed.
24        (g)  The  number  of graduates who obtained employment in
25    the field who did not use the school's  placement  assistance
26    during the reporting period; such information may be compiled
27    by  reasonable  efforts of the school to contact graduates by
28    written correspondence.
29        (h)  The average starting salary for all school graduates
30    employed during the reporting period; such information may be
31    compiled by reasonable  efforts  of  the  school  to  contact
32    graduates by written correspondence.
33        Before  a  student  signs  an  enrollment  agreement  the
34    enrolling  representative  shall  disclose to the student the
                            -21-           LRB9010089THpkam01
 1    above statistical information for the  particular  course  of
 2    instruction offered for sale in the enrollment agreement.
 3        In  the  absence of placement statistics for a new course
 4    of instruction, the enrolling representative  shall  disclose
 5    to  the  student the placement statistics which represent the
 6    aggregate of all courses of instruction.
 7    (Source: P.A. 83-1484; 85-433; revised 3-9-98.)
 8        Section 99.  Effective date.  This Act takes effect  upon
 9    becoming law.".

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