38.51(7)(i)
(i) Require schools to furnish a surety bond in an amount as provided by rule of the department.
38.51(8)(a)(a) In general. No solicitor representing any school offering any course or course of instruction shall sell any course or course of instruction or solicit students therefor in this state 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 department. If the solicitor represents more than one school, a separate permit shall be obtained for each school represented by the solicitor.
38.51(8)(b)
(b) Solicitor's permit. The application for a solicitor's permit shall be made on a form furnished by the department and shall be accompanied by a fee and a surety bond acceptable to the department in the sum of $2,000. The department shall, by rule, specify the amount of the fee for a solicitor's permit. Such bond may be continuous and shall be conditioned to provide indemnification to any student suffering loss as the result of any fraud or misrepresentation used in procuring his or her enrollment or as a result of the failure of the school to faithfully perform the agreement made with the student by the solicitor, and may be supplied by the solicitor or by the school itself either as a blanket bond covering each of its solicitors in the amount of $2,000 or the surety bond under
sub. (7) (i). Upon approval of a permit the department shall issue an identification card to the solicitor giving his or her name and address, the name and address of the employing school, and certifying that the person whose name appears on the card is authorized to solicit students for the school. A permit shall be valid for one year from the date issued. Liability under this paragraph of the surety on the bond for each solicitor covered thereby shall not exceed the sum of $2,000 as an aggregate for any and all students for all breaches of the conditions of the bond. The surety of a bond may cancel the same upon giving 30 days' notice in writing to the department and thereafter shall be relieved of liability under this paragraph for any breach of condition occurring after the effective date of the cancellation. An application for renewal shall be accompanied by a fee, a surety bond acceptable to the department in the sum of $2,000 if a continuous bond has not been furnished, and such information as the department requests of the applicant. The department shall, by rule, specify the amount of the fee for renewal of a solicitor's permit.
38.51(8)(c)
(c) Refusal or revocation of permit. The department may refuse to issue or renew, or may revoke, any solicitor's permit upon one or any combination of the following grounds:
38.51(8)(c)1.
1. Wilful violation of this subsection or any rule promulgated by the department under this section;
38.51(8)(c)2.
2. Furnishing false, misleading or incomplete information to the department;
38.51(8)(c)3.
3. Presenting information to prospective students relating to the school, a course or course of instruction which is false, fraudulent or misleading;
38.51(8)(c)4.
4. Refusal by the school to be represented to allow reasonable inspection or to supply information after written request therefor by the department;
38.51(8)(c)5.
5. Failure of the school which the solicitor represents to meet requirements and standards established by and to comply with rules promulgated by the department pursuant to
sub. (7);
38.51(8)(d)
(d) Notice of refusal to issue or renew permit. Notice of refusal to issue or renew a permit or of the revocation of a permit shall be sent by registered mail to the last address of the applicant or permit holder shown in the records of the department. Revocation of a permit shall be effective 10 days after the notice of revocation has been mailed to the permit holder.
38.51(8)(e)
(e) Request for appearance. Within 20 days of the receipt of notice of the department's refusal to issue or renew a permit or of the revocation of a permit, the applicant or holder of the permit may request permission to appear before the department in person, with or without counsel, to present reasons why the permit should be issued or reinstated. Upon receipt of such request the department shall grant a hearing to the applicant or holder of the permit within 30 days giving that person at least 10 days' notice of the date, time and place.
38.51(8)(f)
(f)
Recovery by students. The bond in force under
par. (b) shall not limit or impair any right of recovery otherwise available under law, nor shall the amount of the bond be relevant in determining the amount of damages or other relief to which any plaintiff may be entitled.
38.51(8)(g)
(g)
Recovery on contracts. No recovery shall be had by any school or its assignee on any contract for or in connection with a course or course of instruction if the representative who sold or solicited the course was not the holder of a solicitor's permit under this subsection at the time of the sale or solicitation.
38.51(8)(h)
(h)
Enforcement. The attorney general or any district attorney may bring any appropriate action or proceeding in any court of competent jurisdiction for the enforcement of this subsection.
38.51(8)(i)
(i)
Penalty. Whoever violates this subsection may be fined not more than $500 or imprisoned not more than 3 months or both.
38.51(9)
(9) Exceptions. This section, except the provisions of
sub. (6), shall not apply to the following:
38.51(9)(a)
(a) In-state schools that are exempt from taxation under section
501 of the internal revenue code and that either were incorporated in this state prior to January 1, 1992, or had their administrative headquarters and principal places of business in this state prior to 1970.
38.51(9)(b)
(b) Schools that are supported mainly by taxes.
38.51(9)(c)
(c) Schools of a parochial or denominational character offering courses having a sectarian objective.
38.51(9)(d)
(d) Schools primarily offering instruction avocational or recreational in nature and not leading to a vocational objective.
38.51(9)(e)
(e) Courses conducted by employers exclusively for their employes.
38.51(9)(f)
(f) Schools, courses of instruction and training programs which are approved or licensed and supervised by other state agencies and boards.
38.51(9)(g)
(g) Schools approved by the department of education for the training of teachers.
Effective date note
NOTE: Par. (g) is shown as amended eff. 1-1-96 by
1995 Wis. Act 27. The treatment by Act 27 was held unconstitutional and declared void by the Supreme Court in Thompson v. Craney, case no.
95-2168-OA. Prior to Act 27 it read:
Effective date text
(g) Schools approved by the department of public instruction for the training of teachers.
38.51(9)(h)
(h) Schools accredited by accrediting agencies recognized by the department.
38.51(10)(a)(a) Authority. All proprietary schools shall be examined and approved by the department before operating in this state. Approval shall be granted to schools meeting the criteria established by the department for a period not to exceed one year. No school may advertise in this state unless approved by the department. All approved schools shall submit quarterly reports, including information on enrollment, number of teachers and their qualifications, course offerings, number of graduates, number of graduates successfully employed and such other information as the department deems necessary.
38.51(10)(b)
(b) Application. Application for initial approval of a school or a course of instruction, approval of a teaching location, change of ownership or control of a school, renewal of approval of a school or reinstatement of approval of a school or course of instruction which has been revoked shall be made on a form furnished by the department and shall be accompanied by a fee set by the department under
par. (c), and such other information as the department deems necessary to evaluate the school in carrying out the purpose of this section.
38.51(10)(c)
(c) Fees; rule making. The department shall promulgate rules to establish fees. In promulgating rules to establish fees, the department shall:
38.51(10)(c)1.
1. Require that the amount of fees collected under this paragraph be sufficient to cover all costs that the department incurs in examining and approving proprietary schools under this subsection.
38.51(10)(c)2.
2. Give consideration to establishing a variable fee structure based on the size of a proprietary school.
38.51(10)(d)
(d)
Enforcement. The attorney general or any district attorney may bring any appropriate action or proceeding in any court of competent jurisdiction for the enforcement of this subsection, including but not limited to bringing an action to restrain by temporary or permanent injunction any violation of
par. (a).
38.51(10)(e)
(e)
Penalties. Any person who violates
par. (a) may be required to forfeit not more than $500. Each day of operation in violation of
par. (a) constitutes a separate offense.
38.51(10)(f)
(f)
Other remedies. In addition to any other remedies provided by law, a student who attends a school which is in violation of
par. (a) may bring a civil action to recover fees paid to the school in violation of
par. (a) together with costs and disbursements, including reasonable attorney fees.
38.51 History
History: 1971 c. 125 ss.
249,
448;
1971 c. 211 s.
51;
1973 c. 12,
90;
1975 c. 39,
224,
422;
1981 c. 380;
1981 c. 391 s.
211;
1983 a. 27,
189,
485;
1985 a. 156;
1985 a. 332 s.
251 (3), (6);
1987 a. 27;
1989 a. 31,
56,
359;
1991 a. 39,
316;
1993 a. 61,
112,
399;
1995 a. 27 ss.
1815 to
1840,
9130 (4),
9145 (1).
