110 ILCS 1005/ Private College Act.

(110 ILCS 1005/0.01) (from Ch. 144, par. 120)

Sec. 0.01. Short title. This Act may be cited as the Private College Act.

(Source: P.A. 86-1324.)

(110 ILCS 1005/1) (from Ch. 144, par. 121)

Sec. 1. For the purposes of this Act:

"Post-secondary educational institution" means a privately-operated college, junior college or university offering degrees and instruction above the high school level either in residence or by correspondence.

"Board" means the Board of Higher Education established under "An Act creating a Board of Higher Education, defining its powers and duties, making an appropriation therefor, and repealing an Act herein named", approved August 22, 1961, as now or hereafter amended.

"Degree" means any designation, appellation, series of letters or words, or other symbol which signifies or purports to signify that the recipient thereof has satisfactorily completed an organized academic program of study beyond the secondary school level.

(Source: P.A. 80-1309.)

(110 ILCS 1005/2) (from Ch. 144, par. 122)

Sec. 2. After July 17, 1945, no person or group of persons may establish and operate or be permitted to become incorporated for the purpose of operating a post-secondary educational institution without obtaining a certificate of approval from the Board so to do. Application for such certificate shall be made to the Board upon forms furnished by it.

This amendatory Act of 1978 does not terminate the validity of a certificate of approval issued prior to and in effect on the effective date of this amendatory Act of 1978.

(Source: P.A. 80-1309.)

(110 ILCS 1005/3) (from Ch. 144, par. 123)

Sec. 3. (a) Applications submitted to the Board for a certificate of approval to operate a post-secondary educational institution shall contain a statement of the following:

1. the proposed name of the institution and its proposed location;

2. the nature, extent and purposes of the courses of study to be given;

3. the fees to be charged and the conditions under which the fees are to be paid;

4. the education and experience of the members of the teaching staff;

5. the degrees to be issued to students upon completion of courses of instruction.

(b) The Board may not approve any application for a certificate of approval that has been plagiarized, in part or in whole. Additionally, the Board may not approve any application that has not been completed in its entirety and such application shall be returned to the post-secondary educational institution.

(Source: P.A. 102-1046, eff. 6-7-22.)

(110 ILCS 1005/4) (from Ch. 144, par. 124)

Sec. 4. Upon the filing of an application for a certificate of approval the Board shall make an examination to ascertain:

1. That each course of instruction to be offered or given is adequate, suitable, and proper;

2. That the fee to be charged for the courses of instruction, and the conditions and terms under which such fees are to be paid are reasonable;

3. That an adequate physical plant and adequate facilities are provided;

4. That the members of the teaching staff are adequately prepared to fulfill their instructional obligations;

5. That the institution does not promise or agree to any right or privilege in respect to professional examinations or to the practice of any profession in violation of the laws of this State;

6. That the institution does not offer inducements that are designed to deceive the prospective student or make any promises which it does not have the present means or ability to perform;

7. That the proposed degree program is educationally and economically consistent with the educational priorities and needs of this State and meets a need that is not currently met by existing institutions and is supported by clear evidence of need.

If the examination shows that the applicant has such qualifications a certificate of approval shall be issued.

(Source: P.A. 102-1046, eff. 6-7-22.)

(110 ILCS 1005/4.5)

Sec. 4.5. Disclosure of heightened monitoring of finances. Any institution with a certificate of approval under this Act is required to make the following disclosures:

(1) If the United States Department of Education places the institution on either the Heightened Cash Monitoring 2 payment method or the reimbursement payment method, as authorized under 34 CFR 668.162, a clear and conspicuous disclosure that the United States Department of Education has heightened monitoring of the institution's finances and the reason for such monitoring. Such disclosure shall be made within 14 days of the action of the United States Department of Education both on the institution's website and to all students and prospective students on a form prescribed by the Board.

(2) Any other disclosure the Board requires by rule adopted pursuant to this Act.

(Source: P.A. 102-1046, eff. 6-7-22.)

(110 ILCS 1005/5) (from Ch. 144, par. 125)

Sec. 5. A certificate of approval of a post-secondary educational institution may be revoked for any of the following:

1. Violation of any of the conditions governing the issuance of the certificate;

2. Failure to comply with any of the rules adopted by the Board;

3. Fraudulent conduct on the part of any person conducting the institution or of any person, acting within the scope of his employment, employed by the owners or persons conducting the institution, on account of which conduct any student enrolled in the institution has been injured or has suffered financial loss;

4. Failure to allow any duly authorized employee, or other representative of the Board, to enter upon the premises of any post-secondary educational institution or have access through electronic means to inspect or otherwise examine the same and any books, papers, or other records pertaining to the degree granting program of such institution, including, but not limited to, financial records such as balance sheets, income statements, and cash flow statements.

(Source: P.A. 102-1046, eff. 6-7-22.)

(110 ILCS 1005/6) (from Ch. 144, par. 126)

Sec. 6. The Board may upon its own motion and shall upon the verified complaint in writing of any person setting forth facts which if proved would constitute grounds for revocation as set forth in Section 5, investigate the actions of any person holding or claiming to hold a certificate. The Board shall, before revoking any certificate, at least 10 days prior to the date set for the hearing, notify in writing the holder of the certificate of any charges made and shall afford the accused person an opportunity to be heard in person or by counsel in reference thereto. Such notice may be served by delivery thereof personally to the accused person, or by mailing it by registered mail to the place of business last theretofore specified by the accused person in his last notification to the Board. At the time and place fixed in the notice, the Board shall proceed to hearing of the charges and both the accused person and the complainant shall be accorded ample opportunity to present in person or by counsel, such statements, testimony, evidence and argument as may be pertinent to the charges or to any defense thereto. The Board may continue such hearing from time to time.

(Source: P.A. 80-1309.)

(110 ILCS 1005/7) (from Ch. 144, par. 127)

Sec. 7. The Board may subpoena and bring before it any person in this State and take testimony either orally or by deposition, or both, with the same fees and mileage and in the same manner as prescribed by law in judicial proceedings in civil cases in circuit courts of this State.

The Board and any employee authorized by it so to do may administer oaths to witnesses at any hearing conducted under this Act.

(Source: P.A. 83-338.)

(110 ILCS 1005/8) (from Ch. 144, par. 128)

Sec. 8. Any circuit court, upon the application of the accused person or complainant or of the Board, may, by order duly entered, require the attendance of witnesses and the production of relevant books and papers before the Board in any hearing relative to the revocation of a certificate, and the court may compel obedience to its order by proceedings for contempt.

(Source: P.A. 83-334.)

(110 ILCS 1005/9) (from Ch. 144, par. 129)

Sec. 9. The Board, at its expense, shall provide a stenographer to take down the testimony and preserve a record of all proceedings, at the hearing of any case wherein a certificate is revoked. The notice of hearing, complaint and all other documents in the nature of pleadings and written motions filed in the proceedings, the transcript of testimony, the report of the Board and the orders of the Board shall be the record of such proceedings. The Board shall furnish a transcript of such record to any person interested in such hearing upon payment therefor of 25¢ per 100 words for each original transcript and 8¢ per 100 words for each carbon copy thereof ordered with the original; provided, that the charge for any part of such transcript ordered and paid for previous to the writing of the original record thereof shall be 8¢ per 100 words.

(Source: P.A. 80-1309.)

(110 ILCS 1005/10) (from Ch. 144, par. 130)

Sec. 10. The Board shall make a written report of its findings and recommendations. A copy of the report shall be served upon the accused person, either personally or by registered mail as provided in this Act for the service of the citation. Within 20 days after such service, the accused person may present to the Board his motion in writing for a rehearing, which motion shall specify the particular grounds therefor. If the accused person orders and pays for a transcript of the record as provided in this Section, the time elapsing thereafter and before such transcript is ready for delivery to him shall not be counted as part of such 20 days.

Whenever the Board is satisfied that substantial justice has not been done, it may order a rehearing. Upon the revocation of the certificate, the certificate shall be surrendered to the Board, and upon the holder's failure or refusal so to do, the Board may seize it.

(Source: P.A. 80-1309.)

(110 ILCS 1005/11) (from Ch. 144, par. 131)

Sec. 11. At any time after the revocation of any certificate, the Board may restore it to the accused person.

(Source: P.A. 80-1309.)

(110 ILCS 1005/12) (from Ch. 144, par. 132)

Sec. 12. Any person affected by a final administrative decision of the Board may have such decision reviewed judicially by the circuit court of the county wherein such person resides or, in the case of a corporation, wherein the registered office is located. If the plaintiff in the review proceeding is not a resident of this State the venue shall be in Sangamon County. The provisions of the Administrative Review Law, and all amendments and modifications thereof, and the rules adopted pursuant thereto, shall apply to and govern all proceedings for the judicial review of final administrative decisions of the Board hereunder.

The Board shall not be required to certify the record of the proceeding unless the plaintiff in the review proceeding shall first pay to him the sum of 5 cents per 100 words of such record. Exhibits shall be certified without cost.

(Source: P.A. 82-783.)

(110 ILCS 1005/14) (from Ch. 144, par. 134)

Sec. 14. The Board may make such rules as it deems necessary to carry out the purposes of this Act.

(Source: P.A. 80-1309.)

(110 ILCS 1005/14.5)

Sec. 14.5. Fees. Fees to cover the cost of reviewing applications for a certificate of approval to establish or operate a post-secondary educational institution may be set by the Board by rule.

Rulemaking authority to implement this amendatory Act of the 95th General Assembly, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

(Source: P.A. 95-1046, eff. 3-27-09.)

(110 ILCS 1005/14.10)

Sec. 14.10. (Repealed).

(Source: P.A. 95-1046, eff. 3-27-99. Repealed by P.A. 103-288, eff. 7-28-23.)

(110 ILCS 1005/14.12)

Sec. 14.12. (Repealed).

(Source: P.A. 103-8, eff. 7-28-23. Repealed internally, eff. 1-1-24.)

(110 ILCS 1005/14.15)

Sec. 14.15. Unfair, misleading, or deceptive practice finding; refund; grant.

(a) In this Section, "unfair, misleading, or deceptive practice" means an act or practice in which a representation, omission, or practice misleads or is likely to mislead a consumer, as determined by the Federal Trade Commission, the United States Department of Education, or the United States Bureau of Consumer Financial Protection in a court of competent jurisdiction.

(b) This Section applies to a for-profit, post-secondary educational institution that received monetary award program funds under Section 35 of the Higher Education Student Assistance Act at a time the institution was found to have been using an unfair, misleading, or deceptive practice, as defined by the Federal Trade Commission, the United States Department of Education, or the United States Bureau of Consumer Financial Protection, and is required to reimburse students for loans taken to pay for the students' education in accordance with a final judgment against the institution issued by a court of competent jurisdiction, based on acts occurring at least 6 months after the effective date of this amendatory Act of the 103rd General Assembly. Any monetary award program funds paid to the for-profit, post-secondary educational institution for students who attended the institution during the period of judgment must be refunded to the Illinois Student Assistance Commission.

(c) If a post-secondary educational institution is required to issue a refund to the Illinois Student Assistance Commission under this Section, the refund shall be deposited into the MAP Refund Fund. The Commission shall use funds appropriated from the MAP Refund Fund to award grants to students as provided in this Section. A post-secondary educational institution required to issue a refund to the Illinois Student Assistance Commission under this Section must notify the Illinois Student Assistance Commission within 30 days after a final judgment issued by a court of competent jurisdiction, and issue the refund within 6 months. A for-profit, post-secondary educational institution with a judgment against it must notify students who attended the post-secondary educational institution during the period of judgment and received monetary award program funds, electronically and by certified mail, within 6 months after issuance of the refund to the Illinois Student Assistance Commission.

(d) The Commission shall make applications for grants under subsection (c) available in the next academic year after the deposit of funds into the MAP Refund Fund or as soon as is practicable. The application process shall be administered by the Commission and shall remain open until no funds remain in the MAP Refund Fund, subject to the other provisions of this Section.

(e) The Commission shall determine the maximum amount of a grant that may be provided under this Section in an academic year. A grant under this Section may be awarded to a student in addition to a monetary award program grant. However, the combined amounts of those grants may not exceed the total cost of tuition and fees for the academic year at the post-secondary educational institution at which the student is enrolled.

(f) Beginning in the third academic year following the issuance of refunds under subsection (b), the remaining balance in the MAP Refund Fund shall be appropriated to the Commission for the Commission's operating budget for the monetary award program.

(g) The MAP Refund Fund is created as a special fund in the State treasury. All money in the Fund shall be used, subject to appropriation, by the Commission for the purposes set forth in this Section.

(Source: P.A. 103-536, eff. 8-11-23.)

(110 ILCS 1005/15) (from Ch. 144, par. 135)

Sec. 15. Any person violating any provision of this Act shall be guilty of a petty offense and fined not less than $25 nor more than $10,000. Each day's violation of any provision of this Act shall constitute a separate offense.

(Source: P.A. 103-288, eff. 7-28-23.)