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2007 - 2008 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2007 ASSEMBLY BILL 281
January 25, 2008 - Offered by Representative Nass.
AB281-ASA1,2,9
1An Act to repeal 37.60, 38.50 (1) (b), 38.50 (1) (e) 6., 38.50 (1) (e) 8., 38.50 (7) (b),
238.50 (8) (h), 38.50 (8) (i), 38.50 (10) (title), 38.50 (11) (a) 1., 38.50 (11) (a) 2. and
338.50 (11) (b) 2.;
to renumber 38.50 (title), 38.50 (1) (d), 38.50 (1) (e) 7., 38.50
4(7) (i), 38.50 (8) (c) 2., 38.50 (8) (c) 7., 38.50 (8) (d), 38.50 (8) (e), 38.50 (10) (c)
5(intro.), 38.50 (10) (c) 4. and 38.50 (11) (title);
to renumber and amend 38.50
6(1) (intro.), 38.50 (1) (a), 38.50 (1) (c), 38.50 (1) (e) (intro.), 38.50 (1) (e) 1., 38.50
7(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)
8(g), 38.50 (2), 38.50 (3), 38.50 (5), 38.50 (7) (intro.), 38.50 (7) (a), 38.50 (7) (c),
938.50 (7) (d), 38.50 (7) (e), 38.50 (7) (f), 38.50 (7) (g), 38.50 (7) (h), 38.50 (8) (title),
1038.50 (8) (a), 38.50 (8) (b), 38.50 (8) (c) (intro.), 38.50 (8) (c) 1., 38.50 (8) (c) 3.,
1138.50 (8) (c) 4., 38.50 (8) (c) 5., 38.50 (8) (c) 6., 38.50 (8) (f), 38.50 (8) (g), 38.50
12(10) (a), 38.50 (10) (b), 38.50 (10) (c) (title), 38.50 (10) (c) 1., 38.50 (10) (c) 2., 38.50
13(10) (c) 3., 38.50 (10) (cm), 38.50 (10) (d), 38.50 (10) (e), 38.50 (10) (f), 38.50 (11)
1(a) (intro.), 38.50 (11) (a) 3., 38.50 (11) (b) 1., 38.50 (11) (c) and 38.50 (11) (d);
to
2amend 20.292 (2) (g), 20.292 (2) (gm), 20.292 (2) (i), 29.506 (7m) (a), 45.20 (1)
3(d), 45.20 (2) (a) 1., 45.20 (2) (a) 2. (intro.), 45.20 (2) (c) 1., 45.20 (2) (d) 1. (intro.),
445.21 (2) (a), 71.05 (6) (b) 28. (intro.), 182.028, 460.05 (1) (e) 1., 944.21 (8) (b) 3.
5a. and 948.11 (4) (b) 3. a.;
to repeal and recreate 20.292 (2) (g); and
to create
637.01 (2), 37.10 (2) to (6), 37.15, 37.30 (title), 37.30 (2), 37.35 (2), 37.35 (3) (c),
7(d), (e) and (g), 37.35 (8), 37.40 (title), 37.45 and 37.50 of the statutes;
relating
8to: the purposes, authority, and responsibilities of the Educational Approval
9Board 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-ASA1,5,62
20.292
(2) (g)
Proprietary
Approval of school programs. The amounts in the
3schedule for the examination and approval of
proprietary school programs
under ch.
437. Ninety percent of all moneys received from the issuance of
solicitor's 5representative's permits under s.
38.50 (8) 37.60 and from the fees under s.
38.50 (10) 637.40 (3) (c) shall be credited to this appropriation account.
AB281-ASA1, s. 2
7Section
2. 20.292 (2) (g) of the statutes, as affected by 2007 Wisconsin Act ....
8(this act), is repealed and recreated to read:
AB281-ASA1,5,129
20.292
(2) (g)
Approval of school programs. The amounts in the schedule for
10the examination and approval of school programs under ch. 37. Ninety percent of all
11moneys received from the fees under s. 37.40 (3) (c) shall be credited to this
12appropriation account.
AB281-ASA1, s. 3
13Section
3. 20.292 (2) (gm) of the statutes is amended to read:
AB281-ASA1,5,1914
20.292
(2) (gm)
Student protection. All moneys received from fees received
15under s.
38.50 (10) (c) 4. 37.40 (3) (d) and from amounts recovered under s. 37.50 (1),
16for the purpose of indemnifying students, parents, or sponsors under s.
38.50 (10) (a) 1737.50 (1) and for the purpose of preserving under s.
38.50 (11) 37.55 the students
18records of schools
, as defined in s. 38.50 (11) (a) 2., that have discontinued their
19operations.
AB281-ASA1, s. 4
20Section
4. 20.292 (2) (i) of the statutes is amended to read:
AB281-ASA1,6,5
120.292
(2) (i)
Closed schools; preservation of student records. All moneys
2received from fees collected under s.
38.50 (11) (d)
37.55 (4) to be used for the
3administrative costs of taking possession of, preserving, and providing
under s. 37.55 4copies of student records of schools
, as defined in s. 38.50 (11) (a) 2., that have
5discontinued their operations.
AB281-ASA1, s. 5
6Section
5. 29.506 (7m) (a) of the statutes is amended to read:
AB281-ASA1,6,117
29.506
(7m) (a) The department shall issue a taxidermy school permit to a
8person who applies for the permit; who, on August 15, 1991,
holds held a valid
9taxidermist permit issued under this section; and who, on August 15, 1991,
operates 10operated a taxidermy school approved by the educational approval board under s.
1138.50 38.51, 1991 stats.
AB281-ASA1,6,1413
37.01
(2) "Fee" means an application fee, a fee charged for tuition, books, or
14materials, or any other fee charged to attend a school.
AB281-ASA1, s. 7
15Section
7. 37.10 (2) to (6) of the statutes are created to read:
AB281-ASA1,6,1716
37.10
(2) Collecting and disseminating outcome and satisfaction information
17for students attending schools.
AB281-ASA1,6,18
18(3) Performing annual reviews of schools.
AB281-ASA1,6,19
19(4) Conducting regular on-site evaluations of schools.
AB281-ASA1,6,21
20(5) Holding schools accountable for improving their performance and
21effectiveness.
AB281-ASA1,6,22
22(6) Supporting options for innovative and quality programs offered by schools.
AB281-ASA1,7,3
2437.15 Accountability. The board shall develop, periodically review, and, if
25appropriate, revise a strategic plan for achieving its purposes under s. 37.10. The
1strategic plan shall include specific goals, objectives, and measurable results. The
2board shall use the strategic plan to evaluate annually its performance and
3effectiveness.
AB281-ASA1,7,5
537.30 (title)
Authority.
AB281-ASA1,7,127
37.30
(2) In the case of a school that offers a program that another state agency
8or board is authorized to approve or accept, including a program leading to a
9credential that is required for licensure or a program providing professional
10development for a licensee, the board shall cooperate with that other state agency or
11board in the approval of the school by the board and the approval or acceptance of
12the program by that other state agency or board.
AB281-ASA1,7,1514
37.35
(2) Establish standards and criteria for approving schools offering
15programs that are delivered primarily by distance learning.
AB281-ASA1, s. 12
16Section
12. 37.35 (3) (c), (d), (e) and (g) of the statutes are created to read:
AB281-ASA1,7,1817
37.35
(3) (c) Student services, including employment assistance services, the
18school provides.
AB281-ASA1,7,1919
(d) The school's complaint procedures.
AB281-ASA1,7,2020
(e) Student outcome and satisfaction information.
AB281-ASA1,7,2221
(g) Any other information that the board considers necessary to accomplish the
22goals specified in s. 37.35 (intro.).
AB281-ASA1,8,3
137.35
(8) Require schools to comply with all applicable building, plumbing,
2electrical, and fire codes and all similar codes established for the protection of the
3health and safety of occupants of school buildings.
AB281-ASA1,8,5
537.40 (title)
Approval; application; fees.
AB281-ASA1,8,11
737.45 Reporting. (1)
Information about school. An approved school shall
8annually submit to the board information about the school as prescribed by the
9board, including a current school catalog, an enrollment contract, if one is used by
10the school, copies of advertising used by the school during the preceding year, and
11financial information as the board considers necessary.
AB281-ASA1,8,19
12(2) Student outcome and satisfaction information. An approved school shall
13annually report to the board student satisfaction and outcome information,
14including information on the number of students from the prior year who are
15continuing in the current year, the number of new students starting in the current
16year, the number of students who have dropped out or withdrawn since the prior
17year, the number of students who are anticipated to continue next year, the number
18of students completing a program, the number of completers successfully employed,
19and such other information as the board considers necessary.
AB281-ASA1,8,22
20(3) Institutional plan. An approved school shall have an institutional plan
21and shall report annually to the board on the progress of the school in achieving the
22goals of the plan.
AB281-ASA1,9,5
2437.50 Consumer protection. (1) Student protection fund. If a school
25closure results in losses to students, parents, or sponsors, the board may authorize
1the full or partial payment of those losses from the appropriation under s. 20.292 (2)
2(gm). The board may pursue any legal action it considers necessary to recover any
3losses paid from that appropriation. Any losses recovered under this subsection shall
4be deposited into the general fund and credited to the appropriation account under
5s. 20.292 (2) (gm).
AB281-ASA1, s. 17
6Section
17. 37.60 of the statutes, as affected by 2007 Wisconsin Act .... (this
7act), is repealed.
AB281-ASA1, s. 18
8Section
18. 38.50 (title) of the statutes is renumbered chapter 37 (title).
AB281-ASA1, s. 19
9Section
19. 38.50 (1) (intro.) of the statutes is renumbered 37.01 (intro.) and
10amended to read:
AB281-ASA1,9,12
1137.01 Definitions. (intro.) In this
section chapter, unless the context clearly
12requires otherwise:
AB281-ASA1, s. 20
13Section
20. 38.50 (1) (a) of the statutes is renumbered 37.01 (1) and amended
14to read:
AB281-ASA1,9,1615
37.01
(1) Notwithstanding s. 38.01 (2), "board" "Board" means the educational
16approval board.