Amendment SSA1-SB174

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. The substitute amendment also grants to the state superintendent of public instruction exclusive authority to approve or accept programs leading to licensure of teachers or providing professional development for teachers and schools that offer only those programs.

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:

SB174-SSA1, s. 1 Section 1. 20.292 (2) (g) of the statutes is amended to read:

SB174-SSA1,5,6 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.

SB174-SSA1, 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:

SB174-SSA1,5,12 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.

SB174-SSA1, s. 3 Section 3. 20.292 (2) (gm) of the statutes is amended to read:

SB174-SSA1,5,19 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.

SB174-SSA1, s. 4 Section 4. 20.292 (2) (i) of the statutes is amended to read:

SB174-SSA1,6,5 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.

SB174-SSA1, s. 5 Section 5. 29.506 (7m) (a) of the statutes is amended to read:

SB174-SSA1,6,11 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.

SB174-SSA1, s. 6 Section 6. 37.01 (2) of the statutes is created to read:

SB174-SSA1,6,14 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.

SB174-SSA1, s. 7 Section 7. 37.10 (2) to (6) of the statutes are created to read:

SB174-SSA1,6,17 37.10 (2) Collecting and disseminating outcome and satisfaction information for students attending schools.

SB174-SSA1,6,18 (3) Performing annual reviews of schools.

SB174-SSA1,6,19 (4) Conducting regular on-site evaluations of schools.

SB174-SSA1,6,21 (5) Holding schools accountable for improving their performance and effectiveness.

SB174-SSA1,6,22 (6) Supporting options for innovative and quality programs offered by schools.

SB174-SSA1, s. 8 Section 8. 37.15 of the statutes is created to read:

SB174-SSA1,7,3 37.15 Accountability. The board shall develop, periodically review, and, if appropriate, revise a strategic plan for achieving its purposes under s. 37.10. The strategic plan shall include specific goals, objectives, and measurable results. The board shall use the strategic plan to evaluate annually its performance and effectiveness.

SB174-SSA1, s. 9 Section 9. 37.30 (title) of the statutes is created to read:

SB174-SSA1,7,5 37.30 (title) Authority.

SB174-SSA1, s. 10 Section 10. 37.30 (2) of the statutes is created to read:

SB174-SSA1,7,12 37.30 (2) Subject to sub. (3), 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 board shall cooperate with that other state agency or board in the approval of the school by the board and the approval or acceptance of the program by that other state agency or board.

SB174-SSA1, s. 11 Section 11. 37.30 (3) of the statutes is created to read:

SB174-SSA1,7,15 37.30 (3) The state superintendent of public instruction shall have the exclusive authority to do all of the following:

SB174-SSA1,7,19 (a) Approve a program offered by a school located in this state, or accept a program offered by a school located outside this state that is accredited by another state or jurisdiction, leading to licensure of teachers or providing professional development for teachers.

SB174-SSA1,7,22 (b) Approve a school located in this state, or accept a school located outside this state that is accredited by another state or jurisdiction, that only offers programs leading to licensure of teachers or providing professional development for teachers.

SB174-SSA1, s. 12 Section 12. 37.35 (2) of the statutes is created to read:

SB174-SSA1,7,25 37.35 (2) Establish standards and criteria for approving schools offering programs that are delivered primarily by distance learning.

SB174-SSA1, s. 13 Section 13. 37.35 (3) (c), (d), (e) and (g) of the statutes are created to read:

SB174-SSA1,8,3 37.35 (3) (c) Student services, including employment assistance services, the school provides.

SB174-SSA1,8,4 (d) The school's complaint procedures.

SB174-SSA1,8,5 (e) Student outcome and satisfaction information.

SB174-SSA1,8,7 (g) Any other information that the board considers necessary to accomplish the goals specified in s. 37.35 (intro.).

SB174-SSA1, s. 14 Section 14. 37.35 (8) of the statutes is created to read:

SB174-SSA1,8,11 37.35 (8) Require schools to comply with all applicable building, plumbing, electrical, and fire codes and all similar codes established for the protection of the health and safety of occupants of school buildings.

SB174-SSA1, s. 15 Section 15. 37.40 (title) of the statutes is created to read:

SB174-SSA1,8,13 37.40 (title) Approval; application; fees.

SB174-SSA1, s. 16 Section 16. 37.45 of the statutes is created to read:

SB174-SSA1,8,19 37.45 Reporting. (1) Information about school. An approved school shall annually submit to the board information about the school as prescribed by the board, including a current school catalog, an enrollment contract, if one is used by the school, copies of advertising used by the school during the preceding year, and financial information as the board considers necessary.

SB174-SSA1,9,2 (2) Student outcome and satisfaction information. An approved school shall annually report to the board 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 board considers necessary.

SB174-SSA1,9,5 (3) Institutional plan. An approved school shall have an institutional plan and shall report annually to the board on the progress of the school in achieving the goals of the plan.

SB174-SSA1, s. 17 Section 17. 37.50 of the statutes is created to read:

SB174-SSA1,9,13 37.50 Consumer protection. (1) Student protection fund. If a school closure results in losses to students, parents, or sponsors, the board may authorize the full or partial payment of those losses from the appropriation under s. 20.292 (2) (gm). The board may pursue any legal action it considers necessary to recover any losses paid from that appropriation. Any losses recovered under this subsection shall be deposited into the general fund and credited to the appropriation account under s. 20.292 (2) (gm).

SB174-SSA1, s. 18 Section 18. 37.60 of the statutes, as affected by 2007 Wisconsin Act .... (this act), is repealed.

SB174-SSA1, s. 19 Section 19. 38.50 (title) of the statutes is renumbered chapter 37 (title).

SB174-SSA1, s. 20 Section 20. 38.50 (1) (intro.) of the statutes is renumbered 37.01 (intro.) and amended to read:

SB174-SSA1,9,20 37.01 Definitions. (intro.) In this section chapter, unless the context clearly requires otherwise:

SB174-SSA1, s. 21 Section 21. 38.50 (1) (a) of the statutes is renumbered 37.01 (1) and amended to read:

SB174-SSA1,9,24 37.01 (1) Notwithstanding s. 38.01 (2), "board" "Board" means the educational approval board.

SB174-SSA1, s. 22 Section 22. 38.50 (1) (b) of the statutes is repealed.

SB174-SSA1, s. 23 Section 23. 38.50 (1) (c) of the statutes is renumbered 37.01 (4) and amended to read:

SB174-SSA1,10,9 37.01 (4) "Course of instruction" "Program" means a series of classroom or correspondence courses having a unified purpose which lead course of study that provides practical or academic instruction, education, or training leading to a diploma or, certificate, degree or to an occupational or vocational objective, or other indicia that a student has acquired knowledge or skills, but does not include education or training offered by an employer solely to its employees or a program that another state agency or board is authorized to approve or accept.

SB174-SSA1, s. 24 Section 24. 38.50 (1) (d) of the statutes is renumbered 37.01 (3).

SB174-SSA1, s. 25 Section 25. 38.50 (1) (e) (intro.) of the statutes is renumbered 37.01 (6) (intro.) and amended to read:

SB174-SSA1,10,16 37.01 (6) (intro.) "School" means any person, whether located within or outside this state, that offers, maintains, provides, or conducts a program for a fee, including any private trade, correspondence, business, or technical, career, distance learning, or degree-granting school, but does not include not including any of the following:

SB174-SSA1, s. 26 Section 26. 38.50 (1) (e) 1. of the statutes is renumbered 37.01 (6) (a) (intro.) and amended to read:

SB174-SSA1,10,21 37.01 (6) (a) (intro.) In-state schools that are An in-state school that is exempt from taxation under section 501 of the Internal Revenue Code and that either were meets any of the following requirements:

SB174-SSA1,10,23 1. Was incorporated in this state prior to January 1, 1992, or had their and has continuously been in good standing under ch. 181 since the date of incorporation.