State Codes and Statutes

Statutes > Illinois > Chapter105 > 1037

    (105 ILCS 425/1) (from Ch. 144, par. 136)
    Sec. 1. Definitions. As used in this Act, unless the context otherwise requires:
    A "private business and vocational school" or "school" is an educational institution privately owned and operated by an owner, partnership, or corporation, offering courses of instruction, short courses, or subjects for which tuition is charged, whether such courses of instruction, short courses, or subjects are offered by in‑residence, correspondence, distance education, or other methods, to prepare individuals:
    (1) to follow a trade or artistic occupation;
    (2) to pursue a manual, mechanical, technical, industrial, business, commercial, office, personal service (other than nursing), or other non‑professional occupation; or
    (3) to follow a profession, if the profession is not subject to licensing or registration under any existing statute of the State of Illinois requiring the licensing or registration of persons practicing such profession or if the school is not approved and regulated by the agency with such licensing or registration authority;
    (4) to improve, enhance, or add to the skills and abilities of the individual relative to occupational responsibilities or career opportunities.
    "Council" means the Private Business and Vocational Schools State Advisory Council created by this Act.
    "Superintendent" means the State Superintendent of Education.
    "Sales representative" means a person employed by a school as defined herein, whether such school is located within or outside Illinois, to act as an agent, sales person, broker or independent contractor to procure directly students or enrollees for such school by solicitation in any form made at any place in this State.
    "Tuition" means any payment or compensation whether paid by an individual, private organization or an agency of the United States, State of Illinois or any political subdivision thereof.
    "Accrediting" refers to the public recognition of the level of quality of an educational institution or program that is granted by a legal entity.
    "Accrediting agency" means a legal entity, or a part of that entity, which conducts accrediting activities and is designated by the Secretary of the U.S. Department of Education pursuant to the provisions of the Higher Education Act of 1965 (P.L. 89‑329) and related regulations.
    "Adequate Evaluation Service" means the process by which a school provides prompt evaluation of all required tests and materials with appropriate comments and suggestions for correction of errors and apparent weaknesses and the prompt return of such corrected materials to students concerned.
    "Board" is the State Board of Education.
    "Business day" is any calendar day except a Saturday, Sunday or legal holiday; provided that whenever a legal holiday is observed on a Monday, that Monday also shall be deemed a legal holiday.
    "Certificate of approval" is a non‑transferable certificate issued under the authority of the State Board of Education to a private business and vocational school located within or without the State in the name of the school, which authorizes the school to solicit students and to offer and maintain a course of instruction in compliance with the provisions of this Act and such standards, rules and regulations as may be promulgated by the Board.
    "Change of location" is a change in a school's principal location, as distinguished from a change in the location of a classroom extension.
    "Change of ownership" is a change in the financial control of a school occurring whenever 50% or more of a school's stock or assets are sold to another party or parties in one or a series of transactions occurring within any 3 year period.
    "Chief managing employee" is the individual who is the head administrator or supervisor at a school's principal location.
    "Classroom extension" is a facility used for instructional purposes either wholly or in part by a school at a location different from the school's principal location.
    "Course of instruction" is a program of study, education, training or instruction consisting of a series of lessons or classes which are coordinated, arranged, or packaged to constitute a subject, curriculum or program of instruction and sold collectively, so long as the course purports to prepare or qualify individuals, or improve or upgrade the skills individuals need (i) for employment, career opportunities or any specific occupation, trade or in job position requiring manual, mechanical, technical, industrial, business, commercial, office, personal service (other than nursing), artistic, or other non‑professional skills or abilities, or (ii) for any profession which is not subject to licensing or registration under any existing statute of this State.
    "Date of acceptance" is the date an authorized school officer signs the enrollment agreement at the school's principal location.
    "Date of admission" is the first scheduled date of class attendance.
    "Distance education" is a teaching and learning situation in which (i) the instructor and the learner are geographically separated and (ii) instruction and materials are delivered or exchanged or delivered and exchanged by mail, electronic devices, or other means.
    "Educational institution" is any organization, whether located within or outside of this State, which promotes business and vocational education, even though the institution's principal effort may not be exclusively educational in nature.
    "Eleemosynary institution" is a benevolent and charitable educational institution deriving a majority of its income from philanthropic gifts and charitable contributions which are used to subsidize its educational program.
    "Enrollment agreement" is any agreement or instrument, however named, which creates or evidences an obligation binding a student to purchase a course of instruction from a school.
    "Home study school" is a school which provides correspondence lesson materials prepared in a sequential and logical order for study and completion by a student on his or her own, with completed lessons being returned by the student to the school for evaluation by the school, with comments added, and subsequent return to the student, including those schools which offer such instruction by home study in combination with in‑residence instruction.
    "Illinois student" is any student contracting for instruction within this State at an Illinois or out‑of‑state private business and vocational school.
    "In‑residence school" is any school offering courses of instruction to its students on the school's premises.
    "Out‑of‑state school" is any school, including both an in‑residence school and a home study school, which has its place of instruction or its principal location outside the boundaries of this State, or which offers or conducts courses of instruction or subjects on premises of the school located outside the boundaries of this State, or which provides correspondence or home study lesson materials from a location outside the boundaries of this State, or which evaluates completed lesson materials or otherwise conducts its evaluation service from a location outside the boundaries of this State, or which otherwise offers or provides Illinois students with courses of instruction or subjects through activities engaged in or conducted outside the boundaries of this State.
    "Person" is an individual, corporation or other business entity.
    "Placement assistance" is a service provided by a school for preparing and referring students to prospective employers as a result of direct contact between school placement officials and employer representatives.
    "Refund policy" is the course of action followed by a school to reimburse unearned tuition to students not completing a course of instruction.
    "Religious institution" is an educational institution of a parochial or denominational character offering courses of instruction which are religious or theological in whole or part and have a sectarian objective.
    "Short course" is a single course of study up to 20 clock hours that (i) is intended to improve or enhance an individual's vocational skills, (ii) includes an assessment of skill development, and (iii) may result in only a certificate of successful completion or attendance.
    "Specialized business and vocational degree" is an award conferred on a student who has successfully completed 2 or more academic years or the equivalent thereof in a business and vocational school with major emphasis on training for a specific job or the development of occupational skills related to any of the vocational areas identified within the definition of a "school".
    "Standards" refers to appropriate criteria established by the Board and used by the Superintendent to implement this Act and such reasonable rules and regulations as may be promulgated by the Board.
    "Student transcript records" are permanent academic (educational) records used for reproducing transcript copies of such information as the student's dates of attendance, courses and subjects of instruction, and grades.
    "Subject" is an instructional division, taught separately within a course of instruction, which focuses on student mastery of particular knowledge or skills.
    "Supplementary course of instruction" is a new course of instruction added to the list of such courses previously approved by the Superintendent.
(Source: P.A. 90‑649, eff. 7‑24‑98.)

    (105 ILCS 425/1.01) (from Ch. 144, par. 136.01)
    Sec. 1.01. This Act shall be known and may be cited as the "Private Business and Vocational Schools Act".
(Source: P.A. 83‑1484.)

    (105 ILCS 425/1.1) (from Ch. 144, par. 136.1)
    Sec. 1.1. Exemptions and annual filing.
    (a) For purposes of this Act, the following shall not be considered to be a private business and vocational school:
        (1) Any eleemosynary institution.
        (2) Any religious institution.
        (3) Any public educational institution exempt from
     property taxation under the laws of this State.
        (4) Any in‑service course of instruction and subject
     offered by an employer provided no tuition is charged and such instruction is offered only to employees of such employer.
        (5) Any educational institution (A) which (i)
     enrolls a majority of its students in degree programs and has maintained an accredited status with the Commission on Institutions of Higher Education of the North Central Association of Colleges and Schools or (ii) on or after the effective date of this amendatory Act of the 93rd General Assembly enrolls students in one or more bachelor‑level programs, enrolls a majority of its students in degree programs, and is accredited by a national accrediting agency that is recognized by the U.S. Department of Education and (B) which is regulated by the Illinois Board of Higher Education under the Private College Act or the Academic Degree Act, or which is exempt from such regulation under either of the foregoing Acts solely for the reason that such educational institution was in operation on the effective date of either such Act.
        (6) Any institution and the franchisees of such
     institution which offer exclusively a course of instruction in income tax theory or return preparation at a total contract price of no more than $400, provided that the total annual enrollment of such 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 $400. For each calendar year after 1990, the total contract price shall be adjusted, rounded off to the nearest dollar, by the same percentage as the increase or decrease in the general price level as measured by the consumer price index for all urban consumers for the United States, or its successor index, as defined and officially reported by the United States Department of Labor, or its successor agency. The change in the index shall be that as first published by the Department of Labor for the calendar year immediately preceding the year in which the total contract price is calculated.
    (b) An institution exempted under subsection (a) of this Section must file with the Superintendent an annual financial report to demonstrate continued compliance by the institution with the requirements on which the exemption is based.
(Source: P.A. 95‑126, eff. 8‑13‑07.)

    (105 ILCS 425/1.2) (from Ch. 144, par. 136.2)
    Sec. 1.2. It is the purpose of this Act to provide for the protection, education and welfare of the citizens of the State of Illinois; to provide for the education, protection and welfare of the students of its private business and vocational schools; and to facilitate and promote quality education and responsible, ethical business practices in each of the private business and vocational schools enrolling students in this State.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/2) (from Ch. 144, par. 137)
    Sec. 2. Private Business and Vocational Schools State Advisory Council. There is created, under the State Board of Education, a Private Business and Vocational Schools State Advisory Council composed of 12 members. The Superintendent shall oversee the functions of this Council and shall designate a qualified staff person to serve as a member and represent the Superintendent on the Council.
    The Chairperson for the Council shall be appointed by the Superintendent from recommendations made by the members specified below.
    The remaining members shall be appointed by the Superintendent as follows: one owner or chief managing employee from a business school; one owner or chief managing employee from a technical school; one owner or chief managing employee from a home study school; one member who is a public high school vocational counselor in the State of Illinois; an attorney from the Office of the Attorney General; two teachers licensed to teach in a business, technical or vocational school; an attorney from the Cook County State's Attorney's Office; and two former students who have graduated from either a business, technical or vocational school as representatives of the general public.
    All owners and chief managing employees appointed to the Council shall have a minimum of five years experience in their position.
    The terms of appointment for all members appointed prior to the effective date of this amendatory Act of 1988 shall expire as designated by the Superintendent at the time of appointment: three members on July 1, 1988; three on July 1, 1989; and three on July 1, 1990. The term of the additional member added by this amendatory Act of 1988 shall commence upon the appointment and expire on July 1, 1990. Successors shall serve for terms of three years from July 1 of the year of their appointment or until their successors are approved.
    Members of the Council shall serve without pay; however, they shall be reimbursed for their necessary expenses by the Board.
    All appointments to the Council shall be approved by the Board.
    Any member of the Council who is a resident of the State who moves residence outside the State shall vacate membership on the Council and so notify the Superintendent, who shall appoint a successor to fill the unexpired term. The successor to fill an unexpired term shall be appointed from a list of at least three nominees submitted by the Council.
    The Superintendent shall convene the Council at least three times a year to review and advise the Board and Superintendent as may be appropriate on the effectiveness and efficiency by which the rules and regulations are: carrying out the intent of this Act; protecting the interests of the students; and enhancing the ability of the schools to provide quality courses of instruction.
    The Council shall develop bylaws for the conduct of its business to enable it to efficiently fulfill its mission.
(Source: P.A. 85‑1382.)

    (105 ILCS 425/3) (from Ch. 144, par. 138)
    Sec. 3. Promulgation of standards. The Board, after giving 10 days notice of the time of a hearing by advertisement in at least 2 newspapers having a general circulation in this State and after giving an opportunity to interested persons to be heard thereon at such hearing, may promulgate reasonable standards consistent with the provisions of this Act for courses of instruction offered by business or vocational schools approved by the Superintendent and the necessary facilities therefor. The Board may amend or revoke such standards from time to time after giving notice and affording an opportunity to be heard as above provided in this Section.
    The Superintendent shall determine whether a certificate of approval shall issue in accordance with the requirements of this Act and the standards, rules and regulations established and promulgated thereunder.
(Source: P.A. 85‑433.)

    (105 ILCS 425/4) (from Ch. 144, par. 139)
    Sec. 4. Prohibition against advertising school or soliciting students without Superintendent authorization.
    Prior to the establishment of a private business or vocational school or the approval of an existing out‑of‑state school and the issuance of a certificate of approval therefor, no person shall advertise such a school or its courses of instruction or solicit prospective students unless the person has applied for and received from the Superintendent authorization to conduct such activity.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/5) (from Ch. 144, par. 140)
    Sec. 5. Necessity for certificate of approval ‑ Person eligible ‑ Nontransferability ‑ Changes ‑ Display ‑ Approved lists. No person, partnership, or corporation shall conduct, or do business as, or otherwise operate or maintain a private business and vocational school in this State without having been issued a certificate of approval by the Superintendent. A person, partnership or corporation is qualified to receive a certificate of approval who makes proper application therefor and complies with this Act and with every standard, rule and regulation pertaining thereto. Such certificates of approval are not transferable. Whenever a change of ownership of a school occurs, an application for a certificate of approval for the school under such changed ownership shall immediately be filed with the Superintendent. Whenever an owner, partnership or corporation operates a school at different locations, an application for a certificate of approval shall be filed for each location. A school must have approval prior to operating at any location, and shall make application to the Superintendent for any change of location and for a classroom extension at a new or changed location. Each application required to be filed in accordance with the provisions of this Section shall be accompanied by the required fee, and all such applications shall be made on forms prepared and furnished by the Superintendent.
    The certificate of approval shall be prominently displayed at some place on the premises of the school open to the inspection of all interested persons.
    The Superintendent shall maintain, open to public inspection, a list of schools, their classroom extensions and their courses of instruction approved under this Act and may annually publish such list.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/5.1) (from Ch. 144, par. 140.1)
    Sec. 5.1. Courses of instruction ‑ Necessity for approval ‑ Degree granting authority.) The Superintendent shall approve all courses of instruction and subjects offered by private business and vocational schools prior to instruction being given. If any course of instruction or subject offered by a school falls within the requirements for approval of this Act or the standards, rules and regulations established and promulgated hereunder, all of its offerings whether secondary or post‑secondary, vocational or avocational, must be approved by the Superintendent.
    Degree granting authority for specialized business and vocational degrees awarded by private business and vocational schools located in Illinois is subject to the provisions of "An Act providing for the regulation of privately‑operated colleges, junior colleges and universities", approved July 17, 1945, as amended. Such authority, however, shall not exempt any school granting such degrees from the provisions of this Act and the standards, rules and regulations established and promulgated hereunder.
    An out‑of‑state private business and vocational school shall market specialized degree programs in this State only after receiving a certificate of approval from the Superintendent and authority for granting such degrees from the appropriate regulatory agency of the state in which it is located.
(Source: P.A. 83‑1484.)

    (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. 94‑1060, eff. 7‑31‑06.)

    (105 ILCS 425/7) (from Ch. 144, par. 142)
    Sec. 7. Application commitments. Each application for a certificate of approval shall also contain the following commitments:
    1. To conduct the school in accordance with this Act and the standards, rules and regulations from time to time established and promulgated hereunder;
    2. To conduct the school in accordance with the standards of the school's regional or national accrediting agency, if any;
    2.5. To meet standards and requirements at least as stringent as those required by Part H of the Federal Higher Education Act of 1965;
    3. To maintain student transcript records for at least 50 years after the student has departed from the school;
    4. To conduct instruction in each course of instruction on its certificate of approval at least once during the approval year for which the certificate is issued;
    5. To permit the Superintendent or his or her designees to inspect the school or classes thereof from time to time with or without notice; and to make available to the Superintendent or his or her designees, 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, rules and regulations established and promulgated hereunder;
    6. To utilize only advertising and solicitation which is free from misrepresentation, deception or fraud, or other misleading or unfair trade practices;
    7. To 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;
    8. To screen applicants for each course of instruction prior to enrollment and maintain such records for 7 years. If the course being offered is in a language other than English, the screening must include that language; and
    9. To post in a conspicuous place a statement, as developed by the Superintendent, of students' rights provided under this Act.
(Source: P.A. 91‑357, eff. 7‑29‑99.)

    (105 ILCS 425/7.2) (from Ch. 144, par. 142.2)
    Sec. 7.2. Conduct of work experience programs ‑ Commercial employment of students. A private business and vocational school shall not make use of its students in manufacturing or commercial activities to its advantage or profit.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/7.3) (from Ch. 144, par. 142.3)
    Sec. 7.3. Charter not to be issued to school not approved ‑ Foreign corporation ‑ Approval of school. No corporate charter shall be issued to any school that has not been approved by the Superintendent to operate or maintain a private business and vocational school; nor shall any foreign corporation conduct, or do business as, or otherwise operate or maintain a private business and vocational school in this State until the school has been approved by the Superintendent.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/9) (from Ch. 144, par. 144)
    Sec. 9. Restriction of certificate to courses of instruction indicated in application ‑ Supplementary applications.

State Codes and Statutes

Statutes > Illinois > Chapter105 > 1037

    (105 ILCS 425/1) (from Ch. 144, par. 136)
    Sec. 1. Definitions. As used in this Act, unless the context otherwise requires:
    A "private business and vocational school" or "school" is an educational institution privately owned and operated by an owner, partnership, or corporation, offering courses of instruction, short courses, or subjects for which tuition is charged, whether such courses of instruction, short courses, or subjects are offered by in‑residence, correspondence, distance education, or other methods, to prepare individuals:
    (1) to follow a trade or artistic occupation;
    (2) to pursue a manual, mechanical, technical, industrial, business, commercial, office, personal service (other than nursing), or other non‑professional occupation; or
    (3) to follow a profession, if the profession is not subject to licensing or registration under any existing statute of the State of Illinois requiring the licensing or registration of persons practicing such profession or if the school is not approved and regulated by the agency with such licensing or registration authority;
    (4) to improve, enhance, or add to the skills and abilities of the individual relative to occupational responsibilities or career opportunities.
    "Council" means the Private Business and Vocational Schools State Advisory Council created by this Act.
    "Superintendent" means the State Superintendent of Education.
    "Sales representative" means a person employed by a school as defined herein, whether such school is located within or outside Illinois, to act as an agent, sales person, broker or independent contractor to procure directly students or enrollees for such school by solicitation in any form made at any place in this State.
    "Tuition" means any payment or compensation whether paid by an individual, private organization or an agency of the United States, State of Illinois or any political subdivision thereof.
    "Accrediting" refers to the public recognition of the level of quality of an educational institution or program that is granted by a legal entity.
    "Accrediting agency" means a legal entity, or a part of that entity, which conducts accrediting activities and is designated by the Secretary of the U.S. Department of Education pursuant to the provisions of the Higher Education Act of 1965 (P.L. 89‑329) and related regulations.
    "Adequate Evaluation Service" means the process by which a school provides prompt evaluation of all required tests and materials with appropriate comments and suggestions for correction of errors and apparent weaknesses and the prompt return of such corrected materials to students concerned.
    "Board" is the State Board of Education.
    "Business day" is any calendar day except a Saturday, Sunday or legal holiday; provided that whenever a legal holiday is observed on a Monday, that Monday also shall be deemed a legal holiday.
    "Certificate of approval" is a non‑transferable certificate issued under the authority of the State Board of Education to a private business and vocational school located within or without the State in the name of the school, which authorizes the school to solicit students and to offer and maintain a course of instruction in compliance with the provisions of this Act and such standards, rules and regulations as may be promulgated by the Board.
    "Change of location" is a change in a school's principal location, as distinguished from a change in the location of a classroom extension.
    "Change of ownership" is a change in the financial control of a school occurring whenever 50% or more of a school's stock or assets are sold to another party or parties in one or a series of transactions occurring within any 3 year period.
    "Chief managing employee" is the individual who is the head administrator or supervisor at a school's principal location.
    "Classroom extension" is a facility used for instructional purposes either wholly or in part by a school at a location different from the school's principal location.
    "Course of instruction" is a program of study, education, training or instruction consisting of a series of lessons or classes which are coordinated, arranged, or packaged to constitute a subject, curriculum or program of instruction and sold collectively, so long as the course purports to prepare or qualify individuals, or improve or upgrade the skills individuals need (i) for employment, career opportunities or any specific occupation, trade or in job position requiring manual, mechanical, technical, industrial, business, commercial, office, personal service (other than nursing), artistic, or other non‑professional skills or abilities, or (ii) for any profession which is not subject to licensing or registration under any existing statute of this State.
    "Date of acceptance" is the date an authorized school officer signs the enrollment agreement at the school's principal location.
    "Date of admission" is the first scheduled date of class attendance.
    "Distance education" is a teaching and learning situation in which (i) the instructor and the learner are geographically separated and (ii) instruction and materials are delivered or exchanged or delivered and exchanged by mail, electronic devices, or other means.
    "Educational institution" is any organization, whether located within or outside of this State, which promotes business and vocational education, even though the institution's principal effort may not be exclusively educational in nature.
    "Eleemosynary institution" is a benevolent and charitable educational institution deriving a majority of its income from philanthropic gifts and charitable contributions which are used to subsidize its educational program.
    "Enrollment agreement" is any agreement or instrument, however named, which creates or evidences an obligation binding a student to purchase a course of instruction from a school.
    "Home study school" is a school which provides correspondence lesson materials prepared in a sequential and logical order for study and completion by a student on his or her own, with completed lessons being returned by the student to the school for evaluation by the school, with comments added, and subsequent return to the student, including those schools which offer such instruction by home study in combination with in‑residence instruction.
    "Illinois student" is any student contracting for instruction within this State at an Illinois or out‑of‑state private business and vocational school.
    "In‑residence school" is any school offering courses of instruction to its students on the school's premises.
    "Out‑of‑state school" is any school, including both an in‑residence school and a home study school, which has its place of instruction or its principal location outside the boundaries of this State, or which offers or conducts courses of instruction or subjects on premises of the school located outside the boundaries of this State, or which provides correspondence or home study lesson materials from a location outside the boundaries of this State, or which evaluates completed lesson materials or otherwise conducts its evaluation service from a location outside the boundaries of this State, or which otherwise offers or provides Illinois students with courses of instruction or subjects through activities engaged in or conducted outside the boundaries of this State.
    "Person" is an individual, corporation or other business entity.
    "Placement assistance" is a service provided by a school for preparing and referring students to prospective employers as a result of direct contact between school placement officials and employer representatives.
    "Refund policy" is the course of action followed by a school to reimburse unearned tuition to students not completing a course of instruction.
    "Religious institution" is an educational institution of a parochial or denominational character offering courses of instruction which are religious or theological in whole or part and have a sectarian objective.
    "Short course" is a single course of study up to 20 clock hours that (i) is intended to improve or enhance an individual's vocational skills, (ii) includes an assessment of skill development, and (iii) may result in only a certificate of successful completion or attendance.
    "Specialized business and vocational degree" is an award conferred on a student who has successfully completed 2 or more academic years or the equivalent thereof in a business and vocational school with major emphasis on training for a specific job or the development of occupational skills related to any of the vocational areas identified within the definition of a "school".
    "Standards" refers to appropriate criteria established by the Board and used by the Superintendent to implement this Act and such reasonable rules and regulations as may be promulgated by the Board.
    "Student transcript records" are permanent academic (educational) records used for reproducing transcript copies of such information as the student's dates of attendance, courses and subjects of instruction, and grades.
    "Subject" is an instructional division, taught separately within a course of instruction, which focuses on student mastery of particular knowledge or skills.
    "Supplementary course of instruction" is a new course of instruction added to the list of such courses previously approved by the Superintendent.
(Source: P.A. 90‑649, eff. 7‑24‑98.)

    (105 ILCS 425/1.01) (from Ch. 144, par. 136.01)
    Sec. 1.01. This Act shall be known and may be cited as the "Private Business and Vocational Schools Act".
(Source: P.A. 83‑1484.)

    (105 ILCS 425/1.1) (from Ch. 144, par. 136.1)
    Sec. 1.1. Exemptions and annual filing.
    (a) For purposes of this Act, the following shall not be considered to be a private business and vocational school:
        (1) Any eleemosynary institution.
        (2) Any religious institution.
        (3) Any public educational institution exempt from
     property taxation under the laws of this State.
        (4) Any in‑service course of instruction and subject
     offered by an employer provided no tuition is charged and such instruction is offered only to employees of such employer.
        (5) Any educational institution (A) which (i)
     enrolls a majority of its students in degree programs and has maintained an accredited status with the Commission on Institutions of Higher Education of the North Central Association of Colleges and Schools or (ii) on or after the effective date of this amendatory Act of the 93rd General Assembly enrolls students in one or more bachelor‑level programs, enrolls a majority of its students in degree programs, and is accredited by a national accrediting agency that is recognized by the U.S. Department of Education and (B) which is regulated by the Illinois Board of Higher Education under the Private College Act or the Academic Degree Act, or which is exempt from such regulation under either of the foregoing Acts solely for the reason that such educational institution was in operation on the effective date of either such Act.
        (6) Any institution and the franchisees of such
     institution which offer exclusively a course of instruction in income tax theory or return preparation at a total contract price of no more than $400, provided that the total annual enrollment of such 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 $400. For each calendar year after 1990, the total contract price shall be adjusted, rounded off to the nearest dollar, by the same percentage as the increase or decrease in the general price level as measured by the consumer price index for all urban consumers for the United States, or its successor index, as defined and officially reported by the United States Department of Labor, or its successor agency. The change in the index shall be that as first published by the Department of Labor for the calendar year immediately preceding the year in which the total contract price is calculated.
    (b) An institution exempted under subsection (a) of this Section must file with the Superintendent an annual financial report to demonstrate continued compliance by the institution with the requirements on which the exemption is based.
(Source: P.A. 95‑126, eff. 8‑13‑07.)

    (105 ILCS 425/1.2) (from Ch. 144, par. 136.2)
    Sec. 1.2. It is the purpose of this Act to provide for the protection, education and welfare of the citizens of the State of Illinois; to provide for the education, protection and welfare of the students of its private business and vocational schools; and to facilitate and promote quality education and responsible, ethical business practices in each of the private business and vocational schools enrolling students in this State.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/2) (from Ch. 144, par. 137)
    Sec. 2. Private Business and Vocational Schools State Advisory Council. There is created, under the State Board of Education, a Private Business and Vocational Schools State Advisory Council composed of 12 members. The Superintendent shall oversee the functions of this Council and shall designate a qualified staff person to serve as a member and represent the Superintendent on the Council.
    The Chairperson for the Council shall be appointed by the Superintendent from recommendations made by the members specified below.
    The remaining members shall be appointed by the Superintendent as follows: one owner or chief managing employee from a business school; one owner or chief managing employee from a technical school; one owner or chief managing employee from a home study school; one member who is a public high school vocational counselor in the State of Illinois; an attorney from the Office of the Attorney General; two teachers licensed to teach in a business, technical or vocational school; an attorney from the Cook County State's Attorney's Office; and two former students who have graduated from either a business, technical or vocational school as representatives of the general public.
    All owners and chief managing employees appointed to the Council shall have a minimum of five years experience in their position.
    The terms of appointment for all members appointed prior to the effective date of this amendatory Act of 1988 shall expire as designated by the Superintendent at the time of appointment: three members on July 1, 1988; three on July 1, 1989; and three on July 1, 1990. The term of the additional member added by this amendatory Act of 1988 shall commence upon the appointment and expire on July 1, 1990. Successors shall serve for terms of three years from July 1 of the year of their appointment or until their successors are approved.
    Members of the Council shall serve without pay; however, they shall be reimbursed for their necessary expenses by the Board.
    All appointments to the Council shall be approved by the Board.
    Any member of the Council who is a resident of the State who moves residence outside the State shall vacate membership on the Council and so notify the Superintendent, who shall appoint a successor to fill the unexpired term. The successor to fill an unexpired term shall be appointed from a list of at least three nominees submitted by the Council.
    The Superintendent shall convene the Council at least three times a year to review and advise the Board and Superintendent as may be appropriate on the effectiveness and efficiency by which the rules and regulations are: carrying out the intent of this Act; protecting the interests of the students; and enhancing the ability of the schools to provide quality courses of instruction.
    The Council shall develop bylaws for the conduct of its business to enable it to efficiently fulfill its mission.
(Source: P.A. 85‑1382.)

    (105 ILCS 425/3) (from Ch. 144, par. 138)
    Sec. 3. Promulgation of standards. The Board, after giving 10 days notice of the time of a hearing by advertisement in at least 2 newspapers having a general circulation in this State and after giving an opportunity to interested persons to be heard thereon at such hearing, may promulgate reasonable standards consistent with the provisions of this Act for courses of instruction offered by business or vocational schools approved by the Superintendent and the necessary facilities therefor. The Board may amend or revoke such standards from time to time after giving notice and affording an opportunity to be heard as above provided in this Section.
    The Superintendent shall determine whether a certificate of approval shall issue in accordance with the requirements of this Act and the standards, rules and regulations established and promulgated thereunder.
(Source: P.A. 85‑433.)

    (105 ILCS 425/4) (from Ch. 144, par. 139)
    Sec. 4. Prohibition against advertising school or soliciting students without Superintendent authorization.
    Prior to the establishment of a private business or vocational school or the approval of an existing out‑of‑state school and the issuance of a certificate of approval therefor, no person shall advertise such a school or its courses of instruction or solicit prospective students unless the person has applied for and received from the Superintendent authorization to conduct such activity.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/5) (from Ch. 144, par. 140)
    Sec. 5. Necessity for certificate of approval ‑ Person eligible ‑ Nontransferability ‑ Changes ‑ Display ‑ Approved lists. No person, partnership, or corporation shall conduct, or do business as, or otherwise operate or maintain a private business and vocational school in this State without having been issued a certificate of approval by the Superintendent. A person, partnership or corporation is qualified to receive a certificate of approval who makes proper application therefor and complies with this Act and with every standard, rule and regulation pertaining thereto. Such certificates of approval are not transferable. Whenever a change of ownership of a school occurs, an application for a certificate of approval for the school under such changed ownership shall immediately be filed with the Superintendent. Whenever an owner, partnership or corporation operates a school at different locations, an application for a certificate of approval shall be filed for each location. A school must have approval prior to operating at any location, and shall make application to the Superintendent for any change of location and for a classroom extension at a new or changed location. Each application required to be filed in accordance with the provisions of this Section shall be accompanied by the required fee, and all such applications shall be made on forms prepared and furnished by the Superintendent.
    The certificate of approval shall be prominently displayed at some place on the premises of the school open to the inspection of all interested persons.
    The Superintendent shall maintain, open to public inspection, a list of schools, their classroom extensions and their courses of instruction approved under this Act and may annually publish such list.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/5.1) (from Ch. 144, par. 140.1)
    Sec. 5.1. Courses of instruction ‑ Necessity for approval ‑ Degree granting authority.) The Superintendent shall approve all courses of instruction and subjects offered by private business and vocational schools prior to instruction being given. If any course of instruction or subject offered by a school falls within the requirements for approval of this Act or the standards, rules and regulations established and promulgated hereunder, all of its offerings whether secondary or post‑secondary, vocational or avocational, must be approved by the Superintendent.
    Degree granting authority for specialized business and vocational degrees awarded by private business and vocational schools located in Illinois is subject to the provisions of "An Act providing for the regulation of privately‑operated colleges, junior colleges and universities", approved July 17, 1945, as amended. Such authority, however, shall not exempt any school granting such degrees from the provisions of this Act and the standards, rules and regulations established and promulgated hereunder.
    An out‑of‑state private business and vocational school shall market specialized degree programs in this State only after receiving a certificate of approval from the Superintendent and authority for granting such degrees from the appropriate regulatory agency of the state in which it is located.
(Source: P.A. 83‑1484.)

    (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. 94‑1060, eff. 7‑31‑06.)

    (105 ILCS 425/7) (from Ch. 144, par. 142)
    Sec. 7. Application commitments. Each application for a certificate of approval shall also contain the following commitments:
    1. To conduct the school in accordance with this Act and the standards, rules and regulations from time to time established and promulgated hereunder;
    2. To conduct the school in accordance with the standards of the school's regional or national accrediting agency, if any;
    2.5. To meet standards and requirements at least as stringent as those required by Part H of the Federal Higher Education Act of 1965;
    3. To maintain student transcript records for at least 50 years after the student has departed from the school;
    4. To conduct instruction in each course of instruction on its certificate of approval at least once during the approval year for which the certificate is issued;
    5. To permit the Superintendent or his or her designees to inspect the school or classes thereof from time to time with or without notice; and to make available to the Superintendent or his or her designees, 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, rules and regulations established and promulgated hereunder;
    6. To utilize only advertising and solicitation which is free from misrepresentation, deception or fraud, or other misleading or unfair trade practices;
    7. To 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;
    8. To screen applicants for each course of instruction prior to enrollment and maintain such records for 7 years. If the course being offered is in a language other than English, the screening must include that language; and
    9. To post in a conspicuous place a statement, as developed by the Superintendent, of students' rights provided under this Act.
(Source: P.A. 91‑357, eff. 7‑29‑99.)

    (105 ILCS 425/7.2) (from Ch. 144, par. 142.2)
    Sec. 7.2. Conduct of work experience programs ‑ Commercial employment of students. A private business and vocational school shall not make use of its students in manufacturing or commercial activities to its advantage or profit.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/7.3) (from Ch. 144, par. 142.3)
    Sec. 7.3. Charter not to be issued to school not approved ‑ Foreign corporation ‑ Approval of school. No corporate charter shall be issued to any school that has not been approved by the Superintendent to operate or maintain a private business and vocational school; nor shall any foreign corporation conduct, or do business as, or otherwise operate or maintain a private business and vocational school in this State until the school has been approved by the Superintendent.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/9) (from Ch. 144, par. 144)
    Sec. 9. Restriction of certificate to courses of instruction indicated in application ‑ Supplementary applications.
{"@context":"https://schema.org","@graph":[{"@type":"WebPage","@id":"https://statutes.laws.com/test/","url":"https://statutes.laws.com/test/","name":"State Codes and Statutes - Statutes","isPartOf":{"@id":"https://statutes.laws.com/#website"},"datePublished":"2015-03-10T03:31:37+00:00","dateModified":"2019-12-27T23:25:16+00:00","breadcrumb":{"@id":"https://statutes.laws.com/test/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https://statutes.laws.com/test/"]}]},{"@type":"BreadcrumbList","@id":"https://statutes.laws.com/test/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://statutes.laws.com/"},{"@type":"ListItem","position":2,"name":"State Codes and Statutes"}]},{"@type":"WebSite","@id":"https://statutes.laws.com/#website","url":"https://statutes.laws.com/","name":"Statutes","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://statutes.laws.com/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"}]}

State Codes and Statutes

State Codes and Statutes

Statutes > Illinois > Chapter105 > 1037

    (105 ILCS 425/1) (from Ch. 144, par. 136)
    Sec. 1. Definitions. As used in this Act, unless the context otherwise requires:
    A "private business and vocational school" or "school" is an educational institution privately owned and operated by an owner, partnership, or corporation, offering courses of instruction, short courses, or subjects for which tuition is charged, whether such courses of instruction, short courses, or subjects are offered by in‑residence, correspondence, distance education, or other methods, to prepare individuals:
    (1) to follow a trade or artistic occupation;
    (2) to pursue a manual, mechanical, technical, industrial, business, commercial, office, personal service (other than nursing), or other non‑professional occupation; or
    (3) to follow a profession, if the profession is not subject to licensing or registration under any existing statute of the State of Illinois requiring the licensing or registration of persons practicing such profession or if the school is not approved and regulated by the agency with such licensing or registration authority;
    (4) to improve, enhance, or add to the skills and abilities of the individual relative to occupational responsibilities or career opportunities.
    "Council" means the Private Business and Vocational Schools State Advisory Council created by this Act.
    "Superintendent" means the State Superintendent of Education.
    "Sales representative" means a person employed by a school as defined herein, whether such school is located within or outside Illinois, to act as an agent, sales person, broker or independent contractor to procure directly students or enrollees for such school by solicitation in any form made at any place in this State.
    "Tuition" means any payment or compensation whether paid by an individual, private organization or an agency of the United States, State of Illinois or any political subdivision thereof.
    "Accrediting" refers to the public recognition of the level of quality of an educational institution or program that is granted by a legal entity.
    "Accrediting agency" means a legal entity, or a part of that entity, which conducts accrediting activities and is designated by the Secretary of the U.S. Department of Education pursuant to the provisions of the Higher Education Act of 1965 (P.L. 89‑329) and related regulations.
    "Adequate Evaluation Service" means the process by which a school provides prompt evaluation of all required tests and materials with appropriate comments and suggestions for correction of errors and apparent weaknesses and the prompt return of such corrected materials to students concerned.
    "Board" is the State Board of Education.
    "Business day" is any calendar day except a Saturday, Sunday or legal holiday; provided that whenever a legal holiday is observed on a Monday, that Monday also shall be deemed a legal holiday.
    "Certificate of approval" is a non‑transferable certificate issued under the authority of the State Board of Education to a private business and vocational school located within or without the State in the name of the school, which authorizes the school to solicit students and to offer and maintain a course of instruction in compliance with the provisions of this Act and such standards, rules and regulations as may be promulgated by the Board.
    "Change of location" is a change in a school's principal location, as distinguished from a change in the location of a classroom extension.
    "Change of ownership" is a change in the financial control of a school occurring whenever 50% or more of a school's stock or assets are sold to another party or parties in one or a series of transactions occurring within any 3 year period.
    "Chief managing employee" is the individual who is the head administrator or supervisor at a school's principal location.
    "Classroom extension" is a facility used for instructional purposes either wholly or in part by a school at a location different from the school's principal location.
    "Course of instruction" is a program of study, education, training or instruction consisting of a series of lessons or classes which are coordinated, arranged, or packaged to constitute a subject, curriculum or program of instruction and sold collectively, so long as the course purports to prepare or qualify individuals, or improve or upgrade the skills individuals need (i) for employment, career opportunities or any specific occupation, trade or in job position requiring manual, mechanical, technical, industrial, business, commercial, office, personal service (other than nursing), artistic, or other non‑professional skills or abilities, or (ii) for any profession which is not subject to licensing or registration under any existing statute of this State.
    "Date of acceptance" is the date an authorized school officer signs the enrollment agreement at the school's principal location.
    "Date of admission" is the first scheduled date of class attendance.
    "Distance education" is a teaching and learning situation in which (i) the instructor and the learner are geographically separated and (ii) instruction and materials are delivered or exchanged or delivered and exchanged by mail, electronic devices, or other means.
    "Educational institution" is any organization, whether located within or outside of this State, which promotes business and vocational education, even though the institution's principal effort may not be exclusively educational in nature.
    "Eleemosynary institution" is a benevolent and charitable educational institution deriving a majority of its income from philanthropic gifts and charitable contributions which are used to subsidize its educational program.
    "Enrollment agreement" is any agreement or instrument, however named, which creates or evidences an obligation binding a student to purchase a course of instruction from a school.
    "Home study school" is a school which provides correspondence lesson materials prepared in a sequential and logical order for study and completion by a student on his or her own, with completed lessons being returned by the student to the school for evaluation by the school, with comments added, and subsequent return to the student, including those schools which offer such instruction by home study in combination with in‑residence instruction.
    "Illinois student" is any student contracting for instruction within this State at an Illinois or out‑of‑state private business and vocational school.
    "In‑residence school" is any school offering courses of instruction to its students on the school's premises.
    "Out‑of‑state school" is any school, including both an in‑residence school and a home study school, which has its place of instruction or its principal location outside the boundaries of this State, or which offers or conducts courses of instruction or subjects on premises of the school located outside the boundaries of this State, or which provides correspondence or home study lesson materials from a location outside the boundaries of this State, or which evaluates completed lesson materials or otherwise conducts its evaluation service from a location outside the boundaries of this State, or which otherwise offers or provides Illinois students with courses of instruction or subjects through activities engaged in or conducted outside the boundaries of this State.
    "Person" is an individual, corporation or other business entity.
    "Placement assistance" is a service provided by a school for preparing and referring students to prospective employers as a result of direct contact between school placement officials and employer representatives.
    "Refund policy" is the course of action followed by a school to reimburse unearned tuition to students not completing a course of instruction.
    "Religious institution" is an educational institution of a parochial or denominational character offering courses of instruction which are religious or theological in whole or part and have a sectarian objective.
    "Short course" is a single course of study up to 20 clock hours that (i) is intended to improve or enhance an individual's vocational skills, (ii) includes an assessment of skill development, and (iii) may result in only a certificate of successful completion or attendance.
    "Specialized business and vocational degree" is an award conferred on a student who has successfully completed 2 or more academic years or the equivalent thereof in a business and vocational school with major emphasis on training for a specific job or the development of occupational skills related to any of the vocational areas identified within the definition of a "school".
    "Standards" refers to appropriate criteria established by the Board and used by the Superintendent to implement this Act and such reasonable rules and regulations as may be promulgated by the Board.
    "Student transcript records" are permanent academic (educational) records used for reproducing transcript copies of such information as the student's dates of attendance, courses and subjects of instruction, and grades.
    "Subject" is an instructional division, taught separately within a course of instruction, which focuses on student mastery of particular knowledge or skills.
    "Supplementary course of instruction" is a new course of instruction added to the list of such courses previously approved by the Superintendent.
(Source: P.A. 90‑649, eff. 7‑24‑98.)

    (105 ILCS 425/1.01) (from Ch. 144, par. 136.01)
    Sec. 1.01. This Act shall be known and may be cited as the "Private Business and Vocational Schools Act".
(Source: P.A. 83‑1484.)

    (105 ILCS 425/1.1) (from Ch. 144, par. 136.1)
    Sec. 1.1. Exemptions and annual filing.
    (a) For purposes of this Act, the following shall not be considered to be a private business and vocational school:
        (1) Any eleemosynary institution.
        (2) Any religious institution.
        (3) Any public educational institution exempt from
     property taxation under the laws of this State.
        (4) Any in‑service course of instruction and subject
     offered by an employer provided no tuition is charged and such instruction is offered only to employees of such employer.
        (5) Any educational institution (A) which (i)
     enrolls a majority of its students in degree programs and has maintained an accredited status with the Commission on Institutions of Higher Education of the North Central Association of Colleges and Schools or (ii) on or after the effective date of this amendatory Act of the 93rd General Assembly enrolls students in one or more bachelor‑level programs, enrolls a majority of its students in degree programs, and is accredited by a national accrediting agency that is recognized by the U.S. Department of Education and (B) which is regulated by the Illinois Board of Higher Education under the Private College Act or the Academic Degree Act, or which is exempt from such regulation under either of the foregoing Acts solely for the reason that such educational institution was in operation on the effective date of either such Act.
        (6) Any institution and the franchisees of such
     institution which offer exclusively a course of instruction in income tax theory or return preparation at a total contract price of no more than $400, provided that the total annual enrollment of such 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 $400. For each calendar year after 1990, the total contract price shall be adjusted, rounded off to the nearest dollar, by the same percentage as the increase or decrease in the general price level as measured by the consumer price index for all urban consumers for the United States, or its successor index, as defined and officially reported by the United States Department of Labor, or its successor agency. The change in the index shall be that as first published by the Department of Labor for the calendar year immediately preceding the year in which the total contract price is calculated.
    (b) An institution exempted under subsection (a) of this Section must file with the Superintendent an annual financial report to demonstrate continued compliance by the institution with the requirements on which the exemption is based.
(Source: P.A. 95‑126, eff. 8‑13‑07.)

    (105 ILCS 425/1.2) (from Ch. 144, par. 136.2)
    Sec. 1.2. It is the purpose of this Act to provide for the protection, education and welfare of the citizens of the State of Illinois; to provide for the education, protection and welfare of the students of its private business and vocational schools; and to facilitate and promote quality education and responsible, ethical business practices in each of the private business and vocational schools enrolling students in this State.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/2) (from Ch. 144, par. 137)
    Sec. 2. Private Business and Vocational Schools State Advisory Council. There is created, under the State Board of Education, a Private Business and Vocational Schools State Advisory Council composed of 12 members. The Superintendent shall oversee the functions of this Council and shall designate a qualified staff person to serve as a member and represent the Superintendent on the Council.
    The Chairperson for the Council shall be appointed by the Superintendent from recommendations made by the members specified below.
    The remaining members shall be appointed by the Superintendent as follows: one owner or chief managing employee from a business school; one owner or chief managing employee from a technical school; one owner or chief managing employee from a home study school; one member who is a public high school vocational counselor in the State of Illinois; an attorney from the Office of the Attorney General; two teachers licensed to teach in a business, technical or vocational school; an attorney from the Cook County State's Attorney's Office; and two former students who have graduated from either a business, technical or vocational school as representatives of the general public.
    All owners and chief managing employees appointed to the Council shall have a minimum of five years experience in their position.
    The terms of appointment for all members appointed prior to the effective date of this amendatory Act of 1988 shall expire as designated by the Superintendent at the time of appointment: three members on July 1, 1988; three on July 1, 1989; and three on July 1, 1990. The term of the additional member added by this amendatory Act of 1988 shall commence upon the appointment and expire on July 1, 1990. Successors shall serve for terms of three years from July 1 of the year of their appointment or until their successors are approved.
    Members of the Council shall serve without pay; however, they shall be reimbursed for their necessary expenses by the Board.
    All appointments to the Council shall be approved by the Board.
    Any member of the Council who is a resident of the State who moves residence outside the State shall vacate membership on the Council and so notify the Superintendent, who shall appoint a successor to fill the unexpired term. The successor to fill an unexpired term shall be appointed from a list of at least three nominees submitted by the Council.
    The Superintendent shall convene the Council at least three times a year to review and advise the Board and Superintendent as may be appropriate on the effectiveness and efficiency by which the rules and regulations are: carrying out the intent of this Act; protecting the interests of the students; and enhancing the ability of the schools to provide quality courses of instruction.
    The Council shall develop bylaws for the conduct of its business to enable it to efficiently fulfill its mission.
(Source: P.A. 85‑1382.)

    (105 ILCS 425/3) (from Ch. 144, par. 138)
    Sec. 3. Promulgation of standards. The Board, after giving 10 days notice of the time of a hearing by advertisement in at least 2 newspapers having a general circulation in this State and after giving an opportunity to interested persons to be heard thereon at such hearing, may promulgate reasonable standards consistent with the provisions of this Act for courses of instruction offered by business or vocational schools approved by the Superintendent and the necessary facilities therefor. The Board may amend or revoke such standards from time to time after giving notice and affording an opportunity to be heard as above provided in this Section.
    The Superintendent shall determine whether a certificate of approval shall issue in accordance with the requirements of this Act and the standards, rules and regulations established and promulgated thereunder.
(Source: P.A. 85‑433.)

    (105 ILCS 425/4) (from Ch. 144, par. 139)
    Sec. 4. Prohibition against advertising school or soliciting students without Superintendent authorization.
    Prior to the establishment of a private business or vocational school or the approval of an existing out‑of‑state school and the issuance of a certificate of approval therefor, no person shall advertise such a school or its courses of instruction or solicit prospective students unless the person has applied for and received from the Superintendent authorization to conduct such activity.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/5) (from Ch. 144, par. 140)
    Sec. 5. Necessity for certificate of approval ‑ Person eligible ‑ Nontransferability ‑ Changes ‑ Display ‑ Approved lists. No person, partnership, or corporation shall conduct, or do business as, or otherwise operate or maintain a private business and vocational school in this State without having been issued a certificate of approval by the Superintendent. A person, partnership or corporation is qualified to receive a certificate of approval who makes proper application therefor and complies with this Act and with every standard, rule and regulation pertaining thereto. Such certificates of approval are not transferable. Whenever a change of ownership of a school occurs, an application for a certificate of approval for the school under such changed ownership shall immediately be filed with the Superintendent. Whenever an owner, partnership or corporation operates a school at different locations, an application for a certificate of approval shall be filed for each location. A school must have approval prior to operating at any location, and shall make application to the Superintendent for any change of location and for a classroom extension at a new or changed location. Each application required to be filed in accordance with the provisions of this Section shall be accompanied by the required fee, and all such applications shall be made on forms prepared and furnished by the Superintendent.
    The certificate of approval shall be prominently displayed at some place on the premises of the school open to the inspection of all interested persons.
    The Superintendent shall maintain, open to public inspection, a list of schools, their classroom extensions and their courses of instruction approved under this Act and may annually publish such list.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/5.1) (from Ch. 144, par. 140.1)
    Sec. 5.1. Courses of instruction ‑ Necessity for approval ‑ Degree granting authority.) The Superintendent shall approve all courses of instruction and subjects offered by private business and vocational schools prior to instruction being given. If any course of instruction or subject offered by a school falls within the requirements for approval of this Act or the standards, rules and regulations established and promulgated hereunder, all of its offerings whether secondary or post‑secondary, vocational or avocational, must be approved by the Superintendent.
    Degree granting authority for specialized business and vocational degrees awarded by private business and vocational schools located in Illinois is subject to the provisions of "An Act providing for the regulation of privately‑operated colleges, junior colleges and universities", approved July 17, 1945, as amended. Such authority, however, shall not exempt any school granting such degrees from the provisions of this Act and the standards, rules and regulations established and promulgated hereunder.
    An out‑of‑state private business and vocational school shall market specialized degree programs in this State only after receiving a certificate of approval from the Superintendent and authority for granting such degrees from the appropriate regulatory agency of the state in which it is located.
(Source: P.A. 83‑1484.)

    (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. 94‑1060, eff. 7‑31‑06.)

    (105 ILCS 425/7) (from Ch. 144, par. 142)
    Sec. 7. Application commitments. Each application for a certificate of approval shall also contain the following commitments:
    1. To conduct the school in accordance with this Act and the standards, rules and regulations from time to time established and promulgated hereunder;
    2. To conduct the school in accordance with the standards of the school's regional or national accrediting agency, if any;
    2.5. To meet standards and requirements at least as stringent as those required by Part H of the Federal Higher Education Act of 1965;
    3. To maintain student transcript records for at least 50 years after the student has departed from the school;
    4. To conduct instruction in each course of instruction on its certificate of approval at least once during the approval year for which the certificate is issued;
    5. To permit the Superintendent or his or her designees to inspect the school or classes thereof from time to time with or without notice; and to make available to the Superintendent or his or her designees, 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, rules and regulations established and promulgated hereunder;
    6. To utilize only advertising and solicitation which is free from misrepresentation, deception or fraud, or other misleading or unfair trade practices;
    7. To 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;
    8. To screen applicants for each course of instruction prior to enrollment and maintain such records for 7 years. If the course being offered is in a language other than English, the screening must include that language; and
    9. To post in a conspicuous place a statement, as developed by the Superintendent, of students' rights provided under this Act.
(Source: P.A. 91‑357, eff. 7‑29‑99.)

    (105 ILCS 425/7.2) (from Ch. 144, par. 142.2)
    Sec. 7.2. Conduct of work experience programs ‑ Commercial employment of students. A private business and vocational school shall not make use of its students in manufacturing or commercial activities to its advantage or profit.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/7.3) (from Ch. 144, par. 142.3)
    Sec. 7.3. Charter not to be issued to school not approved ‑ Foreign corporation ‑ Approval of school. No corporate charter shall be issued to any school that has not been approved by the Superintendent to operate or maintain a private business and vocational school; nor shall any foreign corporation conduct, or do business as, or otherwise operate or maintain a private business and vocational school in this State until the school has been approved by the Superintendent.
(Source: P.A. 83‑1484.)

    (105 ILCS 425/9) (from Ch. 144, par. 144)
    Sec. 9. Restriction of certificate to courses of instruction indicated in application ‑ Supplementary applications.