Public Act 094-1060
 		





SB0861 Enrolled
LRB094 04498 NHT 34527 b






    AN ACT concerning education.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 


 
    Section 5. The Private Business and Vocational Schools Act 
is amended  by changing Sections 6 and 11 as follows:
 



    (105 ILCS 425/6)  (from Ch. 144, par. 141)



    Sec. 6. Application for certificate - Contents. Every 
person,
partnership or corporation doing business in Illinois 
desiring to obtain a
certificate of approval shall make a 
signed and verified application to the
Superintendent upon 
forms prepared and furnished by the Superintendent,
which forms 
shall include the following information:

    1.  The legal title and name of the school, together with 
ownership and
controlling officers, members, and managing 
employees. ;

    2.  The specific courses of instruction which will be 
offered, and
the specific purposes of such instruction. ;

    3.  The place or places where such instruction will be given 
and a
description of the physical and sanitary facilities 
thereof. ;

    4.  A written inspection report of approval by the State 
Fire Marshal
or his designee for use of the premises as a 
school. ;

    5. A specific listing of the equipment available for 
instruction in each
course of instruction, with the maximum 
enrollment that
such equipment will accommodate. ;

    6. The names, addresses and current status of all schools 
of which each
applicant has previously owned any interest, and 
a declaration as to
whether any of these schools were ever 
denied accreditation or licensing,
or, lost accreditation or 
licensing from any governmental body or accrediting agency. ;

    7. The educational and teaching qualifications of

instructors in each course and subject of instruction, and the 
teacher to
student ratio established by rule by the 
superintendent pursuant to
industry standards and after 
soliciting and receiving comments by the
schools in each 
industry. ;

    7.1. The qualifications of administrators. ;

    8. The financial resources available to establish and

maintain the school, documented by a
current balance sheet and 
income statement prepared and certified by an
accountant or any 
such similar evidence as required by the Superintendent. ;

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


    10. Annual reports reflecting teacher, equipment and 
curriculum
evaluations. ;

    11. Copies of enrollment agreements and retail installment 
contracts
to be used in Illinois. ;

    12. Methods used to collect tuition and procedures
for 
collecting delinquent payments. ;

    13. Copies of all brochures, films, promotional material

and written scripts, and media advertising and promotional 
literature that
may be used to induce students to enroll in 
courses of instruction. ;

    14. Evidence of liability insurance, in such form and 
amount as the
Board shall from time to time prescribe pursuant 
to rules and regulations
promulgated hereunder, to protect its 
students and employees at its places
of business and at all 
classroom extensions including any work
experience locations. ;

    15. Each application for a certificate of approval shall
be 
signed and certified under oath by the school's chief managing

employee and also by its individual owner or owners; provided, 
that if the
applicant is a partnership or a corporation, then 
such application shall be
signed and certified under oath by 
the school's chief managing employee
and also by each member of 
the partnership or each officer of the
corporation, as the case 
may be. ;

    16. If the evaluation of a particular course or facility 
requires the
services of an expert not employed by the State 
Board of Education or if in
the interest of expediting the 
approval, a school requests the State Board
of Education to 
employ such an expert, the school shall reimburse the State

Board of Education for the reasonable cost of such services.

(Source: P.A. 85-1382.)

 



    (105 ILCS 425/11)  (from Ch. 144, par. 146)



    Sec. 11. Sales representative permits - Application -

Contents - Fees - Separate
permits.)  Every sales representative 
representing a school,
whether located in the State of Illinois 
or without, shall make application
for a Sales Representative 
Permit to the
Superintendent in writing upon
forms prepared and 
furnished by the Superintendent.  The sales
representative 
shall
be approved by the Superintendent prior to solicitation 
of students. Each
application shall state the name of the 
school which the applicant will
represent, contain evidence of 
the honesty, truthfulness, and integrity
of the applicant and 
shall be accompanied
by the recommendation of two reputable 
persons, neither of whom shall be
in the employ of
the school 
or members of the applicant's immediate family, certifying
that 
the applicant
is truthful, honest, and of good reputation, and 
recommending that a permit
as a sales representative be 
granted.  The fee for an original permit
as a sales 
representative shall be $100. The annual renewal
fee shall be 
$50.  A separate permit shall be obtained for each
school 
represented by a sales representative.

    In determining honesty, truthfulness and integrity under 
this Section,
the Superintendent may take into consideration 
any
felony conviction of the
applicant, but such a conviction 
shall
not operate as a bar to approval unless a court or parole 
authority has
determined that the applicant is not 
rehabilitated sufficiently to serve as
a sales representative.

    Each sales
representative shall provide a continuous

surety company bond for the protection of the contractual 
rights,
including loss resulting from any fraud or 
misrepresentation used by the
sales representative, of 
students, their parents, guardians or sponsors,
in the penal 
sum of $2,000, except under exceptional circumstances
up to 
$10,000, upon the order of the Superintendent.  The surety 
company
bond shall be written by a company authorized to do 
business
in this State. In lieu of a surety bond, an applicant 
may, with the advanced approval of the State Board of Education 
prior to January 1, 2007, deposit with the State Board of 
Education as security a certificate of deposit of any bank 
organized or transacting business in the United States in an 
amount equal to or greater than the amount of the required 
bond.  The applicant must first satisfy the State Board of 
Education that the certificate of deposit is free and clear of 
all liens, pledges, security interests, and other 
encumbrances.  The State Board of Education shall perfect a 
first priority security interest in the certificate of deposit 
to provide the protection required under this paragraph. The 
certificate of deposit must be held and made payable in 
accordance with terms and provisions approved in advance by the 
State Board of Education and must be replaced by a bond meeting 
the requirements set forth in this paragraph within 180 days 
after the issuance of the Sales Representative Permit to the 
applicant. Failure to replace the certificate of deposit with a 
continuous surety company bond shall result in revocation of 
the Sales Representative Permit.


(Source: P.A. 83-1484.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.



Effective Date:  7/31/2006