SB3308 101ST GENERAL ASSEMBLY

LRB101 17330 SPS 66735 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3308

Introduced 2/11/2020, by Sen. Cristina Castro

SYNOPSIS AS INTRODUCED:

105 ILCS 426/30
225 ILCS 412/175 new

Amends the Private Business and Vocational Schools Act of 2012. Provides that a school or program with an enrollment capacity of 5 students or less shall not be considered a private business and vocational school. Amends the Electrologist Licensing Act. Provides that no person, firm, or corporation may own, operate, or conduct a school of electrology for the purpose of teaching electrology for compensation unless licensed by the Department. Provides that an applicant shall apply to the Department of Financial and Professional Regulation on forms provided by the Department, pay the required fees, and comply with specific requirements. Provides that the applicant shall establish to the satisfaction of the Department that the owner possesses sufficient liquid assets to meet the prospective expenses of the school for a period of 3 months.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning regulation.

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 of 2012 is amended by changing Section 30 as follows:

(105 ILCS 426/30)

Sec. 30. Exemptions. For purposes of this Act, the following shall not be considered to be a private business and vocational school:

(1) Any institution devoted entirely to the teaching of religion or theology.

(2) Any in-service program of study and subject offered by an employer, provided that no tuition is charged and the instruction is offered only to employees of the employer.

(3) Any educational institution that (A) enrolls a majority of its students in degree programs and has maintained an accredited status with a regional accrediting agency that is recognized by the U.S. Department of Education or (B) enrolls students in one or more bachelor-level programs, enrolls a majority of its students in degree programs, and is accredited by a national or regional accrediting agency that is recognized by the U.S. Department of Education or that (i) is regulated by the Board under the Private College Act or the Academic Degree Act or is exempt from such regulation under either the Private College Act or the Academic Degree Act solely for the reason that the educational institution was in operation on the effective date of either the Private College Act or the Academic Degree Act or (ii) is regulated by the State Board of Education.

(4) Any institution and the franchisees of that institution that exclusively offer a program of study in income tax theory or return preparation at a total contract price of no more than $400, provided that the total annual enrollment of the institution for all such courses of instruction exceeds 500 students and further provided that the total contract price for all instruction offered to a student in any one calendar year does not exceed $3,000.

(5) Any person or organization selling mediated instruction products through a media, such as tapes, compact discs, digital video discs, or similar media, so long as the instruction is not intended to result in the acquisition of training for a specific employment field, is not intended to meet a qualification for licensure or certification in an employment field, or is not intended to provide credit that can be applied toward a certificate or degree program.

(6) Schools with no physical presence in this State. Schools offering instruction or programs of study, but that have no physical presence in this State, are not required to receive Board approval. Such an institution must not be considered not to have a physical presence in this State unless it has received a written finding from the Board that it has a limited physical presence. In determining whether an institution has no physical presence, the Board shall require all of the following:

(A) Evidence of authorization to operate in at least one other state and that the school is in good standing with that state's authorizing agency.

(B) Evidence that the school has a means of receiving and addressing student complaints in compliance with any federal or state requirements.

(C) Evidence that the institution is providing no instruction in this State.

(D) Evidence that the institution is not providing core academic support services, including, but not limited to, admissions, evaluation, assessment, registration, financial aid, academic scheduling, and faculty hiring and support in this State.

(7) A school or program within a school that exclusively provides yoga instruction, yoga teacher training, or both.

(8) A school or program with an enrollment capacity of 5 students or less.

(Source: P.A. 99-705, eff. 1-1-17.)

Section 10. The Electrologist Licensing Act is amended by adding Section 175 as follows:

(225 ILCS 412/175 new)

Sec. 175. Requirements for ownership or operation of school. No person, firm, or corporation may own, operate, or conduct a school of electrology for the purpose of teaching electrology for compensation unless licensed by the Department. A licensed school is a postsecondary educational institution authorized by the Department to provide a postsecondary education program in compliance with the requirements of this Act. An applicant shall apply to the Department on forms provided by the Department, pay the required fees, and comply with the following requirements:

(1) The applicant must submit to the Department for approval:

(A) a floor plan, drawn to a scale specified on the floor plan, showing every detail of the proposed school; and

(B) a lease commitment or proof of ownership for the location of the proposed school; a lease commitment must provide for execution of the lease upon the Department's approval of the school's application and the lease must be for a period of at least one year.

(2) An application to own or operate a school shall include the following:

(A) if the owner is a corporation, a copy of the articles of incorporation or, if the owner is a limited liability company, a copy of the articles of organization;

(B) if the owner is a partnership, a listing of all partners and their current addresses;

(C) if the applicant is an owner, a completed financial statement showing the owner's ability to operate the school for at least 3 months;

(D) a copy of the official enrollment agreement or student contract to be used by the school, which shall be consistent with the requirements of this Act and rules;

(E) a listing of all teachers who will be in the school's employ, including their teacher license numbers;

(F) a copy of the curricula that will be followed;

(G) the names, addresses, and current status of all schools in which the 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;

(H) 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; if the applicant is a partnership or a corporation, then the 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;

(I) a copy of the school's official transcript; and

(J) the required fee.

(3) Each application for a license to operate a school shall also contain the following commitments:

(A) to conduct the school in accordance with this Act and the standards and rules from time to time adopted under this Act;

(B) to permit the Department to inspect the school or classes thereof from time to time with or without notice and to make available to the Department, at any time when required to do so, information including financial information pertaining to the activities of the school required for the administration of this Act and the standards and rules adopted under this Act;

(C) to utilize only advertising and solicitation that is free from misrepresentation, deception, fraud, or other misleading or unfair trade practices;

(D) to screen applicants to the school prior to enrollment pursuant to the requirements of the school's regional or national accrediting agency, if any, and to maintain any and all records of such screening; if the course of instruction is offered in a language other than English, the screening shall also be performed in that language; and

(E) to post in a conspicuous place a statement, developed by the Department, of student's rights provided under this Act.

(4) The applicant shall establish to the satisfaction of the Department that the owner possesses sufficient liquid assets to meet the prospective expenses of the school for a period of 3 months. In the discretion of the Department, additional proof of financial ability may be required.

(5) The applicant shall comply with all rules of the Department determining the necessary curriculum and equipment required for the conduct of the school.

(6) The applicant must demonstrate employment of a sufficient number of qualified teachers who are holders of a valid electrology license issued by the Department.

(7) A final inspection of the electrology school shall be made by the Department before the school may commence classes.

(8) A written inspection report must be made by the State Fire Marshal or a local fire authority approving the use of the proposed premises as an electrology school.