Amendment ASA1-AB281

LRBs0218/1

GMM:wlj&kjf:pg

2007 - 2008 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2007 ASSEMBLY BILL 281

January 25, 2008 - Offered by Representative Nass.

AB281-ASA1,2,9 An Act to repeal 37.60, 38.50 (1) (b), 38.50 (1) (e) 6., 38.50 (1) (e) 8., 38.50 (7) (b), 38.50 (8) (h), 38.50 (8) (i), 38.50 (10) (title), 38.50 (11) (a) 1., 38.50 (11) (a) 2. and 38.50 (11) (b) 2.; to renumber 38.50 (title), 38.50 (1) (d), 38.50 (1) (e) 7., 38.50 (7) (i), 38.50 (8) (c) 2., 38.50 (8) (c) 7., 38.50 (8) (d), 38.50 (8) (e), 38.50 (10) (c) (intro.), 38.50 (10) (c) 4. and 38.50 (11) (title); to renumber and amend 38.50 (1) (intro.), 38.50 (1) (a), 38.50 (1) (c), 38.50 (1) (e) (intro.), 38.50 (1) (e) 1., 38.50 (1) (e) 2., 38.50 (1) (e) 3., 38.50 (1) (e) 4., 38.50 (1) (e) 5., 38.50 (1) (f), 38.50 (1) (g), 38.50 (2), 38.50 (3), 38.50 (5), 38.50 (7) (intro.), 38.50 (7) (a), 38.50 (7) (c), 38.50 (7) (d), 38.50 (7) (e), 38.50 (7) (f), 38.50 (7) (g), 38.50 (7) (h), 38.50 (8) (title), 38.50 (8) (a), 38.50 (8) (b), 38.50 (8) (c) (intro.), 38.50 (8) (c) 1., 38.50 (8) (c) 3., 38.50 (8) (c) 4., 38.50 (8) (c) 5., 38.50 (8) (c) 6., 38.50 (8) (f), 38.50 (8) (g), 38.50 (10) (a), 38.50 (10) (b), 38.50 (10) (c) (title), 38.50 (10) (c) 1., 38.50 (10) (c) 2., 38.50 (10) (c) 3., 38.50 (10) (cm), 38.50 (10) (d), 38.50 (10) (e), 38.50 (10) (f), 38.50 (11) (a) (intro.), 38.50 (11) (a) 3., 38.50 (11) (b) 1., 38.50 (11) (c) and 38.50 (11) (d); to amend 20.292 (2) (g), 20.292 (2) (gm), 20.292 (2) (i), 29.506 (7m) (a), 45.20 (1) (d), 45.20 (2) (a) 1., 45.20 (2) (a) 2. (intro.), 45.20 (2) (c) 1., 45.20 (2) (d) 1. (intro.), 45.21 (2) (a), 71.05 (6) (b) 28. (intro.), 182.028, 460.05 (1) (e) 1., 944.21 (8) (b) 3. a. and 948.11 (4) (b) 3. a.; to repeal and recreate 20.292 (2) (g); and to create 37.01 (2), 37.10 (2) to (6), 37.15, 37.30 (title), 37.30 (2), 37.35 (2), 37.35 (3) (c), (d), (e) and (g), 37.35 (8), 37.40 (title), 37.45 and 37.50 of the statutes; relating to: the purposes, authority, and responsibilities of the Educational Approval Board and the regulation of schools by that board.

Analysis by the Legislative Reference Bureau

Under current law, the Educational Approval Board (EAB) is required to protect the general public by inspecting and approving private trade, correspondence, business, and technical schools, changes of ownership or control of those schools, teaching locations used by those schools, and courses of instruction offered by those schools and by regulating the soliciting of students for courses and courses of instruction offered by those schools. In particular, the EAB is required to perform certain actions to protect students, prevent fraud, and encourage generally accepted educational standards at those schools. Those actions include requiring schools offering courses and courses of instruction to residents of this state to furnish information concerning their facilities, curricula, instructors, enrollment policies, tuition and other charges and fees, refund policies, and policies concerning the negotiability of promissory instruments received in payment of tuition and other charges.

Current law also prohibits a solicitor representing any school from soliciting students for a course or course of instruction for a consideration or remuneration, except upon the actual business premises of the school, unless the solicitor first secures a solicitor's permit from the EAB and includes provisions relating to application and issuance of solicitor's permits, refusal or revocation of those permits, and consequences for soliciting students without a permit. Moreover, current law permits the EAB to indemnify a student, parent, or sponsor from an appropriation commonly referred to as the student protection fund, if a school closure results in losses to the student, parent, or sponsor. Finally, current law permits the EAB to take possession of the student records of schools, including certain schools not approved by the EAB, that have discontinued their operations, are proposing to discontinue their operations, or are in imminent danger of discontinuing their operations, if the records are in danger of being destroyed, secreted, mislaid, or otherwise being made unavailable to the person who is the subject of the record. Schools not approved by the EAB whose student records the EAB may take into possession include tax-exempt schools that were incorporated in this state before January 1, 1992, or that had their headquarters and principal places of business in this state before 1970; schools that are licensed, approved, and supervised by other state agencies; schools approved by the Department of Public Instruction for the training of teachers; and schools accredited by accrediting agencies recognized by the EAB.

This substitute amendment moves the powers and duties of the EAB from a chapter of the statutes relating to the technical college system to its own newly created chapter, reorganizes those powers and duties, and makes various substantive changes with respect to those powers and duties. Specifically, the substitute amendment does the following:

1. Purposes. Specifies that the purposes of the EAB are to protect the general public and to support quality educational options and requires the EAB to accomplish those purposes by doing all of the following:

a. Evaluating and approving schools, which the substitute amendment redefines to mean, subject to certain exceptions, any individual, partnership, association, corporation, or limited liability company, whether located within or outside this state, that offers, maintains, provides, or conducts for a fee a course of study that provides practical or academic instruction, education, or training leading to a diploma, certificate, or other indicia that a student has acquired knowledge or skills (program), including any private trade, technical, career, distance learning, or degree-granting school.

b. Collecting and disseminating outcome and satisfaction information for the students of schools.

c. Performing annual reviews of schools.

d. Conducting regular on-site evaluations of schools.

e. Holding schools accountable for improving their performance and effectiveness.

f. Supporting options for innovative and quality programs offered by schools.

2. Accountability. Requires the EAB to develop, periodically review, and, if appropriate, revise a strategic plan that includes specific goals, objectives, and measurable results and to use the strategic plan to evaluate annually its performance and effectiveness.

3. Authority. Requires the EAB to approve schools, programs that another state agency or board is not authorized to approve or accept, changes of ownership or control of schools, teaching locations used by schools, and school representatives who, in places other than a school, attempt to secure the enrollment of students in the school that meet the requirements and standards established by the EAB and that comply with rules promulgated by the EAB. In the case of a school that offers a program that another state agency or board is authorized to approve or accept, including a program leading to a credential that is required for licensure or a program providing professional development for a licensee, the substitute amendment requires the EAB to cooperate with that other state agency or board in the approval of the school by the EAB and the approval or acceptance of the program by that other state agency or board.

4. Responsibility. Requires the EAB to perform certain actions to hold schools accountable for achieving satisfactory student outcomes and to ensure that programs meet generally accepted educational, occupational, and industry standards, including establishing standards and criteria for approving schools offering programs that are delivered primarily by distance learning and requiring a school, prior to enrolling a student who is a resident of this state, to provide the student with a catalog that includes information about the following:

a. The school's mission, facilities, programs, and instructors.

b. The school's policies concerning enrollment and admissions, academic progress, and student conduct.

c. Student services, including employment assistance services, the school provides.

d. The school's complaint procedures.

e. Student outcome and satisfaction information.

f. The school's fees, refund policies, and policies concerning the negotiability of promissory instruments received in payment of fees.

g. Any other information the EAB considers necessary to hold schools accountable for achieving satisfactory student outcomes and to ensure that programs meet generally accepted educational, occupational, and industry standards.

5. Reporting. Requires an approved school to submit annually to the EAB all of the following:

a. Information about the school as prescribed by the EAB, including a current school catalog, an enrollment contract, if one is used, copies of advertising used by the school, and financial information as the EAB considers necessary.

b. Student satisfaction and outcome information, including information on the number of students from the prior year who are continuing in the current year, the number of new students starting in the current year, the number of students who have dropped out or withdrawn since the prior year, the number of students who are anticipated to continue next year, the number of students completing a program, the number of completers successfully employed, and such other information as the EAB considers necessary.

c. A report on the school's progress in achieving the goals of its institutional plan.

6. Recruiting. Deletes, effective 24 months after the date of publication of the substitute amendment, the statutory provisions relating to solicitor's permits, but retains among the responsibilities of EAB regulation of the recruiting of students and the issuing of permits to school representatives.

7. Student protection fund. Permits the EAB to pursue any legal action it considers necessary to recover any losses paid from the student protection fund.

8. Student records. Eliminates the authority of the EAB to take possession of the student records of a school not approved by the EAB that has discontinued its operations, is proposing to discontinue its operations, or is in imminent danger of discontinuing its operations.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB281-ASA1, s. 1 Section 1. 20.292 (2) (g) of the statutes is amended to read:

AB281-ASA1,5,6 20.292 (2) (g) Proprietary Approval of school programs. The amounts in the schedule for the examination and approval of proprietary school programs under ch. 37. Ninety percent of all moneys received from the issuance of solicitor's representative's permits under s. 38.50 (8) 37.60 and from the fees under s. 38.50 (10) 37.40 (3) (c) shall be credited to this appropriation account.

AB281-ASA1, s. 2 Section 2. 20.292 (2) (g) of the statutes, as affected by 2007 Wisconsin Act .... (this act), is repealed and recreated to read:

AB281-ASA1,5,12 20.292 (2) (g) Approval of school programs. The amounts in the schedule for the examination and approval of school programs under ch. 37. Ninety percent of all moneys received from the fees under s. 37.40 (3) (c) shall be credited to this appropriation account.

AB281-ASA1, s. 3 Section 3. 20.292 (2) (gm) of the statutes is amended to read:

AB281-ASA1,5,19 20.292 (2) (gm) Student protection. All moneys received from fees received under s. 38.50 (10) (c) 4. 37.40 (3) (d) and from amounts recovered under s. 37.50 (1), for the purpose of indemnifying students, parents, or sponsors under s. 38.50 (10) (a) 37.50 (1) and for the purpose of preserving under s. 38.50 (11) 37.55 the students records of schools, as defined in s. 38.50 (11) (a) 2., that have discontinued their operations.

AB281-ASA1, s. 4 Section 4. 20.292 (2) (i) of the statutes is amended to read:

AB281-ASA1,6,5 20.292 (2) (i) Closed schools; preservation of student records. All moneys received from fees collected under s. 38.50 (11) (d) 37.55 (4) to be used for the administrative costs of taking possession of, preserving, and providing under s. 37.55 copies of student records of schools, as defined in s. 38.50 (11) (a) 2., that have discontinued their operations.

AB281-ASA1, s. 5 Section 5. 29.506 (7m) (a) of the statutes is amended to read:

AB281-ASA1,6,11 29.506 (7m) (a) The department shall issue a taxidermy school permit to a person who applies for the permit; who, on August 15, 1991, holds held a valid taxidermist permit issued under this section; and who, on August 15, 1991, operates operated a taxidermy school approved by the educational approval board under s. 38.50 38.51, 1991 stats.

AB281-ASA1, s. 6 Section 6. 37.01 (2) of the statutes is created to read:

AB281-ASA1,6,14 37.01 (2) "Fee" means an application fee, a fee charged for tuition, books, or materials, or any other fee charged to attend a school.

AB281-ASA1, s. 7 Section 7. 37.10 (2) to (6) of the statutes are created to read:

AB281-ASA1,6,17 37.10 (2) Collecting and disseminating outcome and satisfaction information for students attending schools.

AB281-ASA1,6,18 (3) Performing annual reviews of schools.