Public Act 90-0649 of the 90th General Assembly

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Public Act 90-0649

SB1664 Enrolled                                LRB9010089THpk

    AN ACT relating to education, amending named Acts.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  3.   The  School  Code  is  amended  by changing
Sections 2-3.115 and 10-20.12a as follows:

    (105 ILCS 5/2-3.115)
    Sec. 2-3.115. Tech Prep Programs.
    (a)  Programs of  academic  credit  Youth  Apprenticeship
Vocational  Education  programs  (Tech  Prep)  for  secondary
school  students.   The State Superintendent of Education, in
cooperation with the Board of Higher Education, is encouraged
to establish a program of academic credit for Tech Prep  work
based  learning  youth  apprenticeship  vocational  education
programs  for  secondary  school  students with evidencing an
interest in pursuing such career training.  The  program  may
be  instituted  by any school district seeking to provide its
secondary school students with an opportunity to  participate
in   Tech  Prep  work  based  learning  youth  apprenticeship
vocational education programs or agency training programs  in
which  its  secondary  school students shall receive academic
credit for work-related training  received  at  manufacturing
facilities or agencies.
    (b)  Partnership  for Careers grants.  The State Board of
Education may make grants, subject to appropriations for such
purpose, to  school  districts  to  be  used  for  Tech  Prep
Partnership  for  Careers  programs.   School  districts must
submit joint applications for the grants along  with  one  or
more  companies  who commit to (i) make off-campus, privately
owned facilities available for the use of the  program,  (ii)
provide significant financial contributions to the program in
order  to  supplement  State grants, and (iii) provide career
opportunities for  students  who  successfully  complete  the
program  training.   The  State  Board of Education may use a
portion of the funds appropriated for the program to  promote
its   availability   and  successes  with  school  districts,
businesses, and communities.
(Source: P.A. 88-270.)

    (105 ILCS 5/10-20.12a) (from Ch. 122, par. 10-20.12a)
    Sec. 10-20.12a.   Tuition  for  non-resident  pupils.  To
charge  non-resident  pupils  who  attend  the schools of the
district tuition in an amount not exceeding 110% of  the  per
capita  cost  of  maintaining the schools of the district for
the preceding school year.
    Such per capita cost shall be computed  by  dividing  the
total  cost  of conducting and maintaining the schools of the
district by the average daily attendance,  including  tuition
pupils.  Depreciation  on  the buildings and equipment of the
schools  of  the  district,  and   the   amount   of   annual
depreciation   on  such  buildings  and  equipment  shall  be
dependent upon the useful life of such property.
    The tuition charged shall in no case exceed 110%  of  the
per  capita cost of conducting and maintaining the schools of
the district attended, as determined with  reference  to  the
most  recent  audit  prepared  under  Section  3-7  which  is
available  at  the  commencement  of the current school year.
Non-resident pupils attending the schools of the district for
less  than  the  school  term  shall   have   their   tuition
apportioned,  however pupils who become non-resident during a
school term shall not be charged tuition for the remainder of
the school term in which they became non-resident pupils.
    Unless otherwise agreed to by the  parties  involved  and
where  the  educational  services  are not otherwise provided
for, educational services for an Illinois student  under  the
age  of  21  in  a  residential  program  designed to correct
alcohol or other drug dependencies shall be provided  by  the
district  in  which  the  facility is located and financed as
follows.  The cost of educational services shall be  paid  by
the  district in which the student resides in an amount equal
to the cost of providing educational services in a  treatment
facility.   Payments  shall  be  made  by the district of the
student's residence and shall be made to the district wherein
the facility is located no less than once  per  month  unless
otherwise  agreed to by the parties.  These provisions do not
apply to any disabled child eligible  for  special  education
services under Article 14.
(Source: P.A. 89-397, eff. 8-20-95.)

    Section  5.   The Private Business and Vocational Schools
Act is amended by changing Sections 1, 1.1, 10,  14.1,  15.1,
15.1a, and 15.2 as follows:

    (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 admission" 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 an organized 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. 85-1382.)

    (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 which on the effective
date of this amendatory Act of 1984 is regulated solely by or
which on June 30, 1991, is solely degree granting, enrolls  a
majority  of  its  students  in  bachelors'  or higher degree
programs,  has  maintained  an  accredited  status  with  the
Commission on Institutions of Higher Education of  the  North
Central Association of Colleges and Schools, and 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. 86-824; 87-1238.)

    (105 ILCS 425/10) (from Ch. 144, par. 145)
    Sec. 10.  Application fees - Renewal fees.  The following
nonrefundable  fees  shall  be  paid  by  each  applicant and
collected by the Superintendent upon filing  and  receipt  of
each of the applications specified below:
Original school application for a
    certificate of approval.....................         $500
Initial school application for a
    certificate of approval upon occurrence
    of a change of ownership....................         $500
Annual school application for renewal
    of a certificate of approval................         $250
School application for a change
    of location.................................         $ 75
School application for a
    classroom extension.........................         $150
School application for
    supplementary courses
    of instruction..............................         $150
School application for
    a short course..............................          $50
    An   applicant   school   which   has  not  remedied  all
deficiencies cited by the Superintendent within 12 months  of
the  date  of  its  original application for a certificate of
approval shall pay an additional  $500  original  application
fee   for   the   continued  cost  of  investigation  of  its
application.
(Source: P.A. 83-1484.)

    (105 ILCS 425/14.1) (from Ch. 144, par. 149.1)
    Sec. 14.1.   Annual  review.   The  Superintendent  shall
annually  review  and  investigate  all  approved schools and
courses of instruction.   Consideration  shall  be  given  to
complaints  and  information  collected  by the Federal Trade
Commission, Better Business Bureaus,  the  Illinois  Attorney
General's  Office, any State's Attorney's Office, other State
or official approval agencies,  local  school  officials  and
interested persons.  The Superintendent shall investigate all
written    complaints   about   a   school   or   its   sales
representatives received from all affected  persons  and  any
and  all  governmental  agencies.   Such  annual review shall
include a comparison between  the  graduation  or  completion
rate for the school and the graduation or completion rate for
the  schools  within the industry the school represents, such
as  business,  technical  or  vocational  schools,  for   the
reporting  period of July 1 through June 30.  Any school that
fails to maintain a graduation  or  completion  rate  greater
than  50%  of  the  average graduation or completion rate for
schools within that industry shall be placed on probation for
one year.  If that school's  graduation  or  completion  rate
fails  to  exceed  50%  of  the  average  graduation rate for
schools within that industry for that school's next reporting
period fiscal year, then the Superintendent shall revoke that
school's approval to operate in the State of Illinois.
    In the event a school does not maintain a passage rate of
at least 50% of the average passage rate for  schools  within
that   industry   for  any  State  licensing  examination  or
professional  certification  examination,  then  that  school
shall be placed on probation for one year.  If that  school's
passage  rate  in  its next reporting period fiscal year does
not exceed 50% of the average passage rate of that  class  of
school  as a whole, then the Superintendent shall revoke that
school's approval to operate in the State of Illinois.
    The  Superintendent  shall develop by rule a procedure to
ensure the veracity of the information  required  under  this
Section.
(Source: P.A. 85-1382.)

    (105 ILCS 425/15.1) (from Ch. 144, par. 150.1)
    Sec. 15.1.  Enrollment agreements.  Enrollment agreements
shall be used by schools approved by the Superintendent.  The
student  shall be given a copy of the enrollment agreement at
the time the student signs that agreement and  shall  include
the  following  written  disclosures  and  at the time of the
agreement's acceptance, if those events  occur  at  different
times.  2  copies  shall  be  signed by the student; one copy
shall be given to the student and The school shall  retain  a
signed  the  other  copy  of  the  fully  executed enrollment
agreement as  a  part  of  the  student's  permanent  record.
Enrollment  agreements  shall  include  the following written
disclosures:
    (1)  The name and address of the school and the addresses
where instruction will be given;
    (2)  The  name  and  description   of   the   course   of
instruction,  including  the number of home study lessons and
hours of classroom instruction;
    (3)  The total cost of the course of instruction and  all
other  services and facilities furnished or made available to
the student by or through the school in connection  with  the
student's  matriculation  and  study  and  completion  of any
subject or course of instruction, including all charges  made
by  the school for tuition, room and board, books, materials,
supplies,  laboratory,  shop  and  studio  fees,  and   other
expenses;
    (4)  A clear and conspicuous statement that the agreement
is  a  legally  binding instrument when signed by the student
and accepted by the school;
    (5)  A clear and conspicuous caption, "BUYER'S  RIGHT  TO
CANCEL"  under which it is explained that the student has the
right  to  cancel  the  initial  enrollment  agreement  until
midnight of the fifth business day after the student has been
accepted admitted; and if the right to cancel is not given to
any prospective student at the time the enrollment  agreement
is  signed,  then  the  student  has  the right to cancel the
agreement at any time and receive a refund of all monies paid
to date within 10 days of cancellation;
    (6)  A notice  to  the  students  that  any  cancellation
should  be  in  writing  and  must  be  delivered  to  school
management  and  given  to  the  registered agent, if any, or
managing employee of the school;
    (7)  The school's refund  policy  for  unearned  tuition,
fees, and other charges;
    (8)  The  date of the student's signature and the date of
the student's acceptance admission;
    (9)  A  clear  and  conspicuous  statement   that   every
assignee  of  a student enrollment agreement takes it subject
to all claims and defenses of the student or  his  successors
in interest arising under the agreement;
    (10)  The   name   of   the   school  employee  or  agent
responsible  for  procuring,  soliciting  or  enrolling   the
student;
    (11)  A  statement  containing  the following information
for the most recent 12  month  reporting  period  of  July  1
through June 30:
    (a)  The number of students who were admitted enrolled in
the  course  of  instruction  as  of July 1 of that reporting
period school during the school's last fiscal year;
    (b)  Additions during the year due to:
         (A)  new starts;
         (B)  re-enrollments; and
         (C)  transfers into the course of  instruction  from
    other  courses of instruction at the school the number of
    students who did not complete the course  of  instruction
    for  which  they enrolled during the school's last fiscal
    year;
    (c)  Total  number  of  students  admitted   during   the
reporting  period (the number of students reported under item
(11)(a) plus the additions reported under parts (A), (B), and
(C) of item (11)(b)) the percentage of students who  did  not
complete  the  course  of instruction for which they enrolled
for the past  fiscal  year  as  compared  to  the  number  of
students  who enrolled in the school during the school's past
fiscal year;
    (d)  Of the total course of instruction  enrollment,  the
number of students who:
         (A)  transferred out of the course of instruction to
    another course of instruction;
         (B)  completed   or   graduated  from  a  course  of
    instruction;
         (C)  withdrew from the school;
         (D)  are still enrolled the number and percentage of
    students from the particular school who passed the  State
    licensing  examination  (if any) during the school's last
    fiscal year;
    (e)  The number of students listed in item (11)(d) who
         (A)  were placed in their field of study;
         (B)  were placed in a related field;
         (C)  placed out of the field;
         (D)  were  not  available  for  placement   due   to
    personal reasons;
         (E)  were  not employed the number and percentage of
    graduates  who  requested  placement  assistance  by  the
    school during the school's last fiscal year;
    (f)  The number of students who took  a  State  licensing
examination  or  professional  certification  examination (if
any) during the reporting period, as well as the  number  who
passed  the  number  and percentage of graduates who obtained
employment as a result of placement assistance by the  school
during the school's last fiscal year; such information may be
compiled  by  reasonable  efforts  of  the  school to contact
graduates by written correspondence;
    (g)  The  number  and  percentage  of  graduates  of  the
particular school who obtained employment in  the  field  who
did  not  use  the  school's  placement assistance during the
reporting period school's last fiscal year; such  information
may  be  compiled  by  reasonable  efforts  of  the school to
contact graduates by written correspondence;
    (h)  The average starting salary for all school graduates
employed during the reporting  period  school's  last  fiscal
year;  such information may be compiled by reasonable efforts
of the school to contact graduates by written correspondence;
    (i)  The  following  clear   and   conspicuous   caption:
"COMPLAINTS  AGAINST  THIS  SCHOOL MAY BE REGISTERED WITH THE
STATE BOARD OF EDUCATION", set forth with the  addresses  and
telephone  numbers  of  the  Board's  Springfield and Chicago
offices.
    An alphabetical list of names, addresses,  and  dates  of
admission  by  course  or  course of instruction and a sample
copy of the  enrollment  agreement  employed  to  enroll  the
students  listed shall be filed with the Superintendent on an
annual basis.  The list shall be signed and verified  by  the
school's  Chief  Managing  Employee.   The list shall include
enrollments from the period of July 1  through  June  30  and
shall be submitted within 90 days after the end of the period
A  copy  of each student enrollment agreement shall be signed
by the student and filed with the Superintendent on an annual
basis.  If the enrollment agreement is negotiated orally in a
language  other  than  English,  then  copies  of  the  above
disclosure forms shall be tendered in the language  in  which
the contract was negotiated prior to executing the enrollment
agreement.
    No  school  shall  enter  into  any  enrollment agreement
wherein the student waives the right to  assert  against  the
school  or  any  assignee  any claim or defense he or she may
have against the school arising under  the  agreement.    Any
provisions  in  an  enrollment  agreement wherein the student
agrees to such waiver shall be rendered void.
(Source: P.A. 85-1382.)

    (105 ILCS 425/15.1a) (from Ch. 144, par. 150.1a)
    Sec. 15.1a.  The Superintendent  shall  issue  rules  and
regulations  providing  for  the  establishment of a fair and
equitable  refund  policy  for  each  private  business   and
vocational school.  Such refund policy shall provide that:
    1.  Schools shall, when a student gives written notice of
cancellation,  provide a refund in the amount of at least the
following:
    a.  When notice of cancellation is given before  midnight
of  the  fifth  business  day within 6 days after the date of
enrollment  but  prior  to  the  first  day  of  class,   all
application-registration fees, tuition, and any other charges
shall be refunded to the student;
    b.   When  notice of cancellation is given after midnight
of the fifth business  the  sixth  day  following  acceptance
enrollment  but  prior  to  the  close  of  business  on  the
student's  first  day  of  class  attendance,  the school may
retain no more than the  application-registration  fee  which
may  not exceed $150 or 50% of the cost of tuition, whichever
is less $100;
    c.  When  notice  of  cancellation  is  given  after  the
student's completion of the first day  of  class  attendance,
but  prior to the student's completion of 5% of the course of
instruction,     the     school      may      retain      the
application-registration  fee, an amount not to exceed 10% of
the  tuition  and  other  instructional  charges   or   $300,
whichever  is  less,  and,  subject  to  the  limitations  of
paragraph  12  of this Section, plus the cost of any books or
materials which have been provided by the school.
    d.  When a student has completed in excess of 5%  of  the
course   of   instruction   the   school   may   retain   the
application-registration  fee  and  the  cost of any books or
materials which have been provided by the  school  but  shall
refund  a part of the tuition and other instructional charges
in accordance with whichever of the following applies:
         (1) A.  A school which is accredited by a nationally
    recognized accrediting agency may use this policy or  any
    other  refund  policy filed with the Superintendent which
    returns more money at each of the following levels of the
    schedule to the student.  As used herein,  a  "nationally
    recognized   accrediting   agency"  means  an  agency  or
    association designated  by  the  Secretary  of  the  U.S.
    Department  of  Education  pursuant  to provisions of the
    Higher Education Act of 1965 (P.L.  89-329)  and  related
    regulations.
         After  5%  of  the course of instruction, but within
    the first 4 weeks of classes the school shall  refund  at
    least 80% of the tuition;
         During the first 25% of the course, the school shall
    refund at least 55% of the tuition;
         During the second 25% of the course the school shall
    refund at least 30% of the tuition;
         In  cases of withdrawal after 50% of the course, the
    school may commit the student to the remaining obligation
    of tuition.
         As used herein, a "nationally recognized accrediting
    agency" means an agency or association designated by  the
    Secretary of the U.S. Department of Education pursuant to
    provisions  of  the  Higher  Education  Act of 1965 (P.L.
    89-329) and related regulations.
         (2)  B.  All  other  schools  regulated  under  this
    Section may retain an amount computed prorata by days  in
    class plus 10% of tuition and other instructional charges
    up  to  completion  of  60% of the course of instruction.
    When the student has completed in excess of  60%  of  the
    course   of   instruction,  the  school  may  retain  the
    application/registration fee and the entire  tuition  and
    other charges.
         (3)  The  refund  policy  for short courses up to 20
    clock hours shall refund prorata up to 60% completion  of
    the course.
         (4)  All  schools  that offer courses of instruction
    taught by distance education methods shall  make  refunds
    to students who cancel their instruction in the following
    manner:
              (A)  Students   who   enroll   in   a  distance
         education  course  of  instruction  shall   have   5
         business   days  from  the  date  of  their  initial
         acceptance to cancel the enrollment  and  receive  a
         complete refund of moneys paid to the school.
              (B)  Thereafter,  the  school  shall  retain  a
         prorata  amount  based  on the percentage of lessons
         completed, up to 60% of the course  of  instruction,
         plus   10%   of   the   total   tuition   and  other
         instructional charges.
              (C)  If more than 20% of  the  lessons  in  the
         course  of  instruction  are  completed  within  the
         5-business-day  cooling  off  period,  the  distance
         education  refund  policy  stated above applies from
         the beginning of the first lesson completed.
              (D)  Refunds shall be based on the last  lesson
         completed.  use  this  policy  or any other required
         policy filed with the Superintendent  which  returns
         more  money  at  each of the following levels of the
         schedule to the student:
  Percentage of days in class   Percentage of tuition
  completed by student at       and other instructional
  notice of cancellation:       charges which School
                                may retain:
    in excess of 5% - 10%                   15%
    in excess of 10% - 15%                  22%
    in excess of 15% - 20%                  28%
    in excess of 20% - 25%                  33%
    in excess of 25% - 30%                  38%
    in excess of 30% - 35%                  43%
    in excess of 35% - 40%                  47%
    in excess of 40% - 45%                  52%
    in excess of 45% - 50%                  60%
    in excess of 50% - 55%                  64%
    in excess of 55% - 60%                  68%
    in excess of 60% - 65%                  73%
    in excess of 65% - 70%                  75%
    in excess of 70% - 75%                  80%
    in excess of 75% - 80%                  85%
    When notice of cancellation is given  after  the  student
has  completed over 80% of the course of instruction measured
by   days   in   class,   the   school   may    retain    the
application-registration fee and the entire tuition and other
charges.
    2.  A  student,  who  on  personal initiative and without
solicitation enrolls,  starts,  and  completes  a  course  of
instruction  before  midnight of the fifth business the sixth
day after the enrollment agreement is signed, is not  subject
to the cancellation refund provisions of this Section.
    3.  Applicants not accepted by the school shall receive a
refund  of  all tuition and fees paid within 30 calendar days
after the determination of non-acceptance is made.
    4.  Application-registration fees shall be chargeable  at
initial  enrollment  and  shall not exceed $150 or 50% of the
cost of tuition, whichever is less $100.00.
    5.  Deposits or down payments shall become  part  of  the
tuition.
    6.  The  school shall mail a written acknowledgement of a
student's cancellation or written withdrawal to  the  student
within 15 calendar days of the postmark date of notification.
Such written acknowledgement is not necessary if a refund has
been mailed to the student within the 15 calendar days.
    7.  (Blank).  If  the  school  cancels  or discontinues a
course, the student shall have all tuition, fees,  and  other
charges refunded.
    8.  All  student  refunds  shall  be  made  by the school
within 30 calendar days from  the  date  of  receipt  of  the
student's cancellation.
    9.  A  student  may  give  notice  of cancellation to the
school in writing. The unexplained absence of a student  from
a  school  for  more  than  15  school  days shall constitute
constructive notice  of  cancellation  to  the  school.   For
purposes  of  cancellation  the date shall be the last day of
attendance.
    10.  A  school  may  make  refunds  which  exceed   those
prescribed in this Section. If the school has a refund policy
that  returns  more  money  to  a student than those policies
prescribed in this Section, that refund policy must be  filed
with the Superintendent.
    11.  A  school  shall refund all monies paid to it in any
of the following circumstances:
    a.  (a)  the  school  did  not  provide  the  prospective
student  with  a  copy  of  the  student's  valid  enrollment
agreement and a current catalog or bulletin;
    b. (b)  the school cancels or discontinues the course  of
instruction in which the student has enrolled;.
    c.  the  school fails to conduct classes on days or times
scheduled, detrimentally affecting the student.
    12.  A school must refund any  book  and  materials  fees
when:  (a)  the book and materials are returned to the school
unmarked; and (b) the student has provided the school with  a
notice of cancellation.
(Source: P.A. 85-1382.)

    (105 ILCS 425/15.2) (from Ch. 144, par. 150.2)
    Sec.  15.2.   Placement  assistance.)   Each school which
offers or advertises a placement assistance for any course of
instruction must file with the Superintendent it's  placement
statistics  for  the most recent 12 month reporting period of
July 1 through June 30 or calendar year immediately preceding
to the date of the school's application for annual renewal of
its certificate of approval for every course of instruction.
    All  schools  offering   or   advertising   a   placement
assistance shall disclose statistics for such 12 month period
or  calendar  year  showing  all  of the following: number of
students  enrolled,  the  number  of  students  who  did  not
complete the course of instruction for which  they  enrolled,
the number of students who graduated, the number of graduates
who   requested  placement  assistance,  and  the  number  of
graduates who received bona fide job offers for the  job  for
which they were trained.
    (a)  The  number  of  students  who  were admitted in the
course of instruction as of July 1 of the reporting period.
    (b)  Additions during the year due to:
         (1)  new starts;
         (2)  re-enrollments; and
         (3)  transfers into the course of  instruction  from
    other courses of instruction at the school.
    (c)  Total   number   of  students  admitted  during  the
reporting period in item  (a)  plus  the  additions  reported
under parts (1), (2), and (3) of item (b).
    (d)  Of the total enrollment, the number of students who:
         (1)  transferred out of the course of instruction to
    another course of instruction;
         (2)  completed   or   graduated  from  a  course  of
    instruction;
         (3)  withdrew from the school;
         (4)  are still enrolled.
    (e)  The number of students listed in (d) who:
         (1)  were placed in their field of study;
         (2)  were placed in a related field;
         (3)  placed out of the field;
         (4)  were  not  available  for  placement   due   to
    personal reasons;
         (5)  were not employed.
    (f)  The  number of students who took the State licensing
examination or  professional  certification  examination  (if
any)  during  the reporting period, as well as the number who
passed.
    (g)  The number of graduates who obtained  employment  in
the  field  who did not use the school's placement assistance
during the reporting period; such information may be compiled
by reasonable efforts of the school to contact  graduates  by
written correspondence.
    (h)  The average starting salary for all school graduates
employed during the reporting period; such information may be
compiled  by  reasonable  efforts  of  the  school to contact
graduates by written correspondence.
    Before  a  student  signs  an  enrollment  agreement  the
enrolling representative shall disclose to  the  student  the
above  statistical  information  for the particular course of
instruction offered for sale in the enrollment agreement.
    In the absence of placement statistics for a  new  course
of  instruction,  the enrolling representative shall disclose
to the student the placement statistics which  represent  the
aggregate of all courses of instruction.
(Source: P.A. 83-1484; 85-433; revised 3-9-98.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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