Public Act 097-0650

SB1795 Enrolled LRB097 09902 NHT 50065 b

AN ACT concerning education.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 1. Short title. This Act may be cited as the

Private Business and Vocational Schools Act of 2012.

Section 5. Purpose. It is the purpose of this Act to

provide for the protection, education, and welfare of the

citizens of this State; to provide for the education,

protection, and welfare of the students of its private business

and vocational schools; and to facilitate and promote quality

education and responsible, ethical, business practices in each

of the private business and vocational schools enrolling

students in this State.

Section 10. Validity of certificates under the Private

Business and Vocational Schools Act. Certificates of approval

granted by the State Board of Education under the Private

Business and Vocational Schools Act, which is repealed by this

Act, shall remain valid through June 30, 2012.

Section 15. Definitions. As used in this Act, unless the

context otherwise requires:

"Board" means the Board of Higher Education established

under the Board of Higher Education Act.

"Certificate of completion" or "certificate" means any

designation, appellation, series of letters or words, or other

symbol that signifies or purports to signify that the recipient

thereof has satisfactorily completed a private business and

vocational school's program of study that is beyond the

secondary school level, but not a post-secondary degree program

at the associate, baccalaureate, master's, doctoral, or

post-baccalaureate, professional degree level.

"Chief managing employee" is the individual who is the head

administrator or supervisor at a school's principal location.

"Educational institution" or "institution" means an

organization that promotes business and vocational education,

even though the institution's principal effort may not be

exclusively educational in nature.

"Enrollment agreement" means any agreement or instrument,

however named, that creates or evidences an obligation binding

a student to purchase a program of study from a school.

"Non-degree program of study" or "program of study" means

any designation, appellation, series of letters or words, or

other symbol that signifies or purports to signify that the

recipient has satisfactorily completed an organized academic

program of study beyond the secondary school level, such as a

certificate, but below the associate's degree level and that

does not include any recognized degree program such as an

associate's, baccalaureate, master's, or doctoral degree, a

post-baccalaureate, professional degree, or a post-degree

certificate, such as a post-baccalaureate certificate,

post-master's certificate, or post-doctoral certificate.

"Program of study" as used in this definition means any

academic program beyond the secondary school level, except for

a program that is devoted entirely to religion or theology, a

program offered by an institution operating under the authority

of the Private College Act, the Academic Degree Act, or the

Board of Higher Education Act, or a program of study of less

than one year in length operating under the statutory authority

granted to the Department of Financial and Professional

Regulation.

"Permit of approval" means a non-transferable permit,

issued by and pursuant to the authority of the Board of Higher

Education through its Division of Private Business and

Vocational Schools to a private business and vocational school

in the name of the school, that authorizes the school to

solicit students and to offer and maintain one or more courses

of instruction in compliance with the provisions of this Act

and such standards and rules as may be adopted by the Board.

"Private business and vocational school" or "school" means

an educational institution privately owned or operated by a

person, partnership, corporation, or other entity offering

courses of instruction for which tuition is charged, whether

such courses of instruction are offered on site, through

correspondence, by distance education, or by other methods, to

prepare individuals to do any of the following:

(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.

(3) To follow a profession, if the profession is not

subject to licensing or registration under any existing

State statute requiring the licensing or registration of

persons practicing such profession or if the school is not

subject to the regulation of 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.

Section 20. Permit of approval. No person or group of

persons subject to this Act may establish and operate or be

permitted to become incorporated for the purpose of operating a

private business and vocational school without obtaining from

the Board a permit of approval, provided that a permit of

approval is not required for a program that is devoted entirely

to religion or theology or a program offered by an institution

operating under the authority of the Private College Act, the

Academic Degree Act, or the Board of Higher Education Act.

Application for a permit must be made to the Board upon forms

furnished by it. Permits of approval are not transferable.

Whenever a change of ownership of a school occurs, an

application for a permit of approval for the school under the

changed ownership must immediately be filed with the Board.

Whenever an owner, partnership, or corporation operates a

school at different locations, an application for a permit of

approval must be filed for each location. A school must have

approval prior to operating at a location and must make

application to the Board for any change of location and for a

classroom extension at a new or changed location. Each

application required to be filed in accordance with the

provisions of this Section must be accompanied by the required

fee under the provisions of Sections 75 and 85 of this Act, and

all such applications must be made on forms prepared and

furnished by the Board. The permit of approval must be

prominently displayed at some place on the premises of the

school at each school location open to the inspection of all

interested persons. The Board shall maintain, open to public

inspection, a list of schools, their classroom extensions, and

their courses of instruction approved under this Act and may

annually publish such a list. Issuance of the permit of

approval by the Board does not denote that the school or any

program offered by the school is recommended, guaranteed, or

endorsed by the Board or that the Board is responsible for the

quality of the school or its programs, and no school may

communicate this to be the case. No guarantee of employability

of school graduates is made by the Board in its approval of

programs or schools, and no school may communicate such

information.

Section 25. Award of certificates.

(a) A certificate may be awarded only by a private business

and vocational school approved by the Board to award such a

certificate or by an institution approved by the Board under

the authority of the Private College Act, the Academic Degree

Act, or the Board of Higher Education Act. No private business

and vocational school shall be authorized to award a

certificate or be approved as a certificate-granting

institution unless it provides documentation to the Board that

it satisfies the criteria for approval. The documentation

provided must be under oath or affirmation of the principal

officer of the private business and vocational school and shall

contain the name and address of the institution, the names and

addresses of the president or other administrative head and of

each member of the board of trustees or other governing board,

a description of the certificates to be awarded and the course

or courses of instruction prerequisite thereto, and such

additional information relevant to the purposes of this Act as

the Board may prescribe. Any amendment to the documentation

must be under oath or affirmation of the principal officer of

the institution and must be filed with the Board prior to the

award of any certificate.

(b) A certificate-granting institution shall keep the

documentation that it shall have filed with the Board current

at all times. For this purpose, it shall report annually, by

appropriate amendment of the notice, any change in a fact

previously reported.

The Board may not approve any documentation or amendment to

the documentation filed pursuant to this Section unless it

finds the facts stated therein to be correct and further finds

that such facts constitute compliance with the requirements of

this Act for institutions.

Failure to provide such documentation is grounds for

revocation of the permit of approval.

Section 30. Exemptions. For purposes of this Act, the

following shall not be considered to be a private business and

vocational school:

(1) Any institution devoted entirely to the teaching of

religion or theology.

(2) Any in-service program of study and subject offered

by an employer, provided that no tuition is charged and the

instruction is offered only to employees of the employer.

(3) Any educational institution that (A) enrolls a

majority of its students in degree programs and has

maintained an accredited status with a regional

accrediting agency that is recognized by the U.S.

Department of Education or (B) enrolls students in one or

more bachelor-level programs, enrolls a majority of its

students in degree programs, and is accredited by a

national or regional accrediting agency that is recognized

by the U.S. Department of Education or that (i) is

regulated by the Board under the Private College Act or the

Academic Degree Act or is exempt from such regulation under

either the Private College Act or the Academic Degree Act

solely for the reason that the educational institution was

in operation on the effective date of either the Private

College Act or the Academic Degree Act or (ii) is regulated

by the State Board of Education.

(4) Any institution and the franchisees of that

institution that exclusively offer a program of study in

income tax theory or return preparation at a total contract

price of no more than $400, provided that the total annual

enrollment of the 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 $3,000.

(5) Any person or organization selling mediated

instruction products through a media, such as tapes,

compact discs, digital video discs, or similar media, so

long as the instruction is not intended to result in the

acquisition of training for a specific employment field, is

not intended to meet a qualification for licensure or

certification in an employment field, or is not intended to

provide credit that can be applied toward a certificate or

degree program.

(6) Schools with no physical presence in this State.

Schools offering instruction or programs of study, but that

have no physical presence in this State, are not required

to receive Board approval. Such an institution must not be

considered not to have a physical presence in this State

unless it has received a written finding from the Board

that it has a limited physical presence. In determining

whether an institution has no physical presence, the Board

shall require all of the following:

(A) Evidence of authorization to operate in at

least one other state and that the school is in good

standing with that state's authorizing agency.

(B) Evidence that the school has a means of

receiving and addressing student complaints in

compliance with any federal or state requirements.

(C) Evidence that the institution is providing no

instruction in this State.

(D) Evidence that the institution is not providing

core academic support services, including, but not

limited to, admissions, evaluation, assessment,

registration, financial aid, academic scheduling, and

faculty hiring and support in this State.

Section 35. Institution and program approval criteria.

Each entity seeking a permit of approval is required to

demonstrate that it satisfies institution-approval criteria

and that each program of study offered meets the

program-approval criteria in this Act and any applicable rules.

The following standard criteria are intended to measure the

appropriateness of the stated educational objectives of the

educational programs of a given institution and the extent to

which suitable and proper processes have been developed for

meeting those objectives. Information related to the

satisfaction of the approval criteria outlined in this Section

must be supplied to the Board by institutions on forms provided

by the Board. Additional information may be requested by the

Board to determine the institution's ability to satisfy the

criteria. The following must be considered as part of, but not

necessarily all of, the criteria for approval of institutions

and the programs offered under this Act:

(1) Qualifications of governing board members, owners,

and senior administrators. At a minimum, these individuals

must be of good moral character and have no felony criminal

record.

(2) Qualifications of faculty and staff.

(3) Demonstration of student learning and quality of

program delivery.

(4) Sufficiency of institutional finances.

(5) Accuracy, clarity, and appropriateness of program

descriptions. Institutional promotional, advertising, and

recruiting materials must be clear, appropriate, and

accurate.

(6) Sufficiency of facilities and equipment. At a

minimum, these must be appropriate and must meet applicable

safety code requirements and ordinances.

(7) Fair and equitable refund policies. At a minimum,

these must be fair and equitable, must satisfy any related

State or federal rules, and must abide by the standards

established in Section 60 of this Act and the rules adopted

for the implementation of this Act.

(8) Appropriate and ethical admissions and recruitment

practices. At a minimum, recruiting practices must be

ethical and abide by any State or federal rules.

(9) Recognized accreditation status. Accreditation

with an accrediting body approved by the U.S. Department of

Education may be counted as significant evidence of the

institution's ability to meet curricular approval

criteria.

(10) Meeting employment requirements in the field of

study. The institution must clearly demonstrate how a

student's completion of the program of study satisfies

employment requirements in the occupational field. Such

information must be clearly and accurately provided to

students. If licensure, certification, or their equivalent

is required of program graduates to enter the field of

employment, the institution must clearly demonstrate that

completion of the program will allow students to achieve

this status.

(11) Enrollment agreements that, at a minimum, meet the

requirements outlined in Section 40 of this Act.

(12) Clearly communicated tuition and fee charges.

Tuition and fees and any other expense charged by the

school must be appropriate to the expected income that will

be earned by graduates. No school may have a tuition policy

or enrollment agreement that requires that a student

register for more than a single semester, quarter, term, or

other such period of enrollment as a condition of the

enrollment nor shall any school charge a student for

multiple periods of enrollment prior to completion of the

single semester, quarter, term, or other such period of

enrollment.

(13) Legal action against the institution, its parent

company, its owners, its governing board, or its board

members. Any such legal action must be provided to the

Board and may be considered as a reason for denial or

revocation of the permit of approval.

Section 37. Disclosures. All schools shall make, at a

minimum, the disclosures required under this Section clearly

and conspicuously on their Internet websites. The disclosure

shall consist of a statement containing the following

information for the most recent 12-month reporting period of

July 1 through June 30:

(1) The number of students who were admitted in the

course of instruction as of July 1 of that reporting

period.

(2) 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.

(3) The total number of students admitted during the

reporting period (the number of students reported under

paragraph (1) of this Section plus the additions reported

under subparagraphs (A), (B), and (C) of paragraph (2) of

this Section.

(4) 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.

(5) The number of students listed in paragraph (4) of

this Section 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.

(6) 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.

(7) 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.

(8) 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.

(9) The following clear and conspicuous caption, set

forth with the address and telephone number of the Board's

office:

"COMPLAINTS AGAINST THIS SCHOOL MAY BE REGISTERED

WITH THE BOARD OF HIGHER EDUCATION.".

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 Board's Executive Director on an

annual basis. The list shall be signed and verified by the

school's chief managing employee.

Section 40. Enrollment agreements. A copy of the enrollment

agreement must be provided to the Board. Enrollment agreements

may be used by schools only if approved by the Board. The Board

shall develop a standard enrollment agreement for use by

schools approved or seeking approval under this Act. Schools

may create an enrollment agreement that meets the minimum

requirements of this Section, but it must be approved by the

Board prior to implementation. The student must be given a copy

of the enrollment agreement at the time the student signs that

agreement and at the time of the agreement's acceptance, if

those events occur at different times. The school shall retain

a signed copy of the fully executed enrollment agreement as a

part of the student's permanent record. No school may enter

into an 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 a waiver shall be rendered void.

Enrollment agreements shall include, at a minimum, a clear

description of costs, refund policies, program information,

all disclosures required by this Act, the Board's Internet

website, the address and phone number of the Board for students

to report complaints, and any additional information the Board

may require by rule.

Section 45. Board approval. Each school approved by the

Board under this Act is responsible for the content of any

program offered. Issuance of the permit of approval does not

denote that the school or any program offered by the school is

recommended, guaranteed, or endorsed by the Board. Schools may

not advertise or communicate to students or the public in any

way that indicates endorsement of the school or any program by

the Board.

Section 50. Requirements for approved institutions. Each

school and each of the non-degree programs of study offered by

the school shall be approved for 5 years, subject to the terms

and conditions of approval, including without limitation the

submission of required reporting and the payment of required

charges and fees under the provisions of Section 75 of this

Act, and compliance with any other requirements in this Act or

supporting rules. Failure to so comply at any time during the 5

years is grounds for immediate revocation of the permit of

approval. Information requested by the Board must be submitted

annually or, in special circumstances, at the request of the

Board. Failure to do so is grounds for immediate revocation of

the permit of approval. Each non-degree program of study must

be approved by the Board as well. Regardless of when the

program was approved, all programs of study must be approved

again with the institutional approval at the end of the 5-year

approval period or in conjunction with an earlier review if so

required under this Act or the administrative rules adopted in

support of this Act. The Board's Executive Director has the

authority to order any school subject to this Act to cease and

desist operations if the school is found to have acted contrary

to the standards set forth in this Act or the supporting

administrative rules.

Section 55. Maintenance of approval. Institutions covered

under this Act must meet the following requirements to receive

and maintain approval:

(1) Provide a surety bond. A continuous surety company

bond, written by a company authorized to do business in

this State, for the protection of contractual rights,

including faithful performance of all contracts and

agreements for students and their parents, guardians, or

sponsors. The Board shall establish the bond amount by

rule. The amount of the bond must be sufficient to provide

for the repayment of full tuition to all students enrolled

at the institution in the event of closure of the

institution. Evidence of the continuation of the bond must

be filed annually with the Board. The surety bond must be a

written agreement that provides for monetary compensation

in the event that the school fails to fulfill its

obligations to its students and their parents, guardians,

or sponsors. The surety bonding company shall guarantee the

return to students and their parents, guardians, or

sponsors of all prepaid, unearned tuition in the event of

school closure. A condition of the bond shall be that the

bond agent shall notify the Board in the event the bond is

no longer in effect.

(2) Provide to the Board and each student the school's

policy for addressing student complaints. Included in this

process, the school must provide in its promotional

materials and on its Internet website the Board's address

and Internet website for reporting complaints.

(3) Provide on the institution's Internet website and

in promotional materials and enrollment agreements the

Internet website, address, and phone number of the Board

for students to report complaints.

(4) Provide evidence of liability insurance, in such

form and amount as the Board shall from time to time

prescribe pursuant to rules adopted under this Act, to

protect students and employees at the school's places of

business and at all classroom extensions, including any

work-experience locations.

(5) Provide data as requested by the Board to support

the satisfaction of the requirements of this Act or to

provide vocational and technical educational data for the

longitudinal data system created under the P-20

Longitudinal Education Data System Act.

(6) Pay required fees as described under the provisions

of Section 75 of this Act by prescribed deadlines.

(7) With respect to advertising programs of study, all

of the following apply:

(A) A school may state that it is approved to offer

a program of study or authorized to award a certificate

in this State only after that approval has been

officially granted and received in writing from the

Board.

(B) A school shall not advertise or state in any

manner that it is accredited by the Board to award

degrees or certificates.

(C) No school may publish or otherwise communicate

to prospective students, faculty, staff, or the public

misleading or erroneous information about the

certificate or degree-granting status of a given

institution.

(D) All advertisements or solicitations by

approved schools shall only reference the Board's

approval by stating that the school is approved by the

"Division of Private Business and Vocational Schools".

(E) All advertisements or solicitations by

approved schools shall contain the school's official

Internet website address.

(8) Permit the Board's Executive Director or his or her

designees to inspect the school or classes thereof from

time to time with or without notice and to make available

to the Board's Executive Director or his or her designees,

at any time when required to do so, information, including

financial information, pertaining to the activities of the

school required for the administration of this Act and the

standards and rules adopted under this Act.

(9) Maintain satisfactory student retention and

graduation rates and State licensing examination or

professional certification examination passage rates.

Student retention and graduation rates must be maintained

that are appropriate to standards in the field. A State

licensing examination or professional certification

examination passage rate of at least 50% of the average

passage rate for schools within the industry for any State

licensing examination or professional certification

examination must be maintained. In the event that the

school fails to do so, then that school shall be placed on

probation for one year. If that school's passage rate in

its next reporting period does not exceed 50% of the

average passage rate of that class of school as a whole,

then the Board shall revoke the school's approval for that

program to operate in this State. In addition, this shall

be grounds for reviewing the institution's approval to

operate. The Board shall develop, by rule, a procedure to

ensure the veracity of the information required under this

Section.

(10) Not enter into an 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 a waiver shall be rendered void.

(11) Not have a tuition policy or enrollment agreement

that requires that a student register for more than a

single semester, quarter, term, or other such period of

enrollment as a condition of the enrollment nor charge a

student for multiple periods of enrollment prior to

completion of a single semester, quarter, term, or other

such period of enrollment.

(12) Provide the Board with a copy of any notice of

warning or suspension or revocation received from an

accrediting agency or State or federal oversight body

within 15 days after receipt of the notice. The school

shall, at the same time, inform the Board, in writing, on

actions being taken to correct all deficiencies cited.

(13) Maintain a fair and equitable refund policy and

abide by it. Such a policy shall abide by any State or

federal rules as appropriate. The same policy shall apply

to all students equally.

(14) Act in an ethical manner.

Section 60. Refund policy. The Board shall establish

minimum standards for a fair and equitable refund policy that

must be applied by all institutions subject to this Act. The

same refund policy must be applied to all students even if they

are not eligible for federal financial aid. Schools that are

accredited by an accrediting body recognized by the U.S.

Department of Education and approved to participate in offering

Federal Title IV student financial aid may apply the required

federal refund policy as long as the same policy is applied to

all students even if they are not eligible for federal

financial aid.

Section 65. Prohibition against advertising a school or

soliciting students without Board authorization. Prior to the

issuance of a permit of approval by the Board, no person or

organization shall advertise a school or any program of study

or solicit prospective students unless the person or

organization has applied for and received from the Board

authorization to conduct such activity. If the Board has

authorized such activity, all advertisements or solicitations

must reference the Board's approval by stating that the school

is approved by the "Division of Private Business and Vocational

Schools of the Illinois Board of Higher Education".

Section 70. Closing of a school.

(a) In the event a school proposes to discontinue its

operations, the chief administrative officer of the school

shall cause to be filed with the Board the original or legible

true copies of all such academic records of the institution as

may be specified by the Board.

(b) These records shall include, at a minimum, the academic

records of each former student that is traditionally provided

on an academic transcript, such as, but not limited to, courses

taken, terms, grades, and other such information.

(c) In the event it appears to the Board that any such

records of an institution discontinuing its operations is in

danger of being lost, hidden, destroyed, or otherwise made

unavailable to the Board, the Board may seize and take

possession of the records, on its own motion and without order

of court.

(d) The Board shall maintain or cause to be maintained a

permanent file of such records coming into its possession.

(e) As an alternative to the deposit of such records with

the Board, the institution may propose to the Board a plan for

permanent retention of the records. The plan must be put into

effect only with the approval of the Board.

(f) When a postsecondary educational institution now or

hereafter operating in this State proposes to discontinue its

operation, such institution shall cause to be created a

teach-out plan acceptable to the Board, which shall fulfill the

school's educational obligations to its students. Should the

school fail to deliver or act on the teach-out plan, the Board

is in no way responsible for providing the teach-out.

(g) The school and its designated surety bonding company

are responsible for the return to students of all prepaid,

unearned tuition. As identified in Section 55 of this Act, the

surety bond must be a written agreement that provides for

monetary compensation in the event that the school fails to

fulfill its obligations. The surety bonding company shall

guarantee the return to the school's students and their

parents, guardians, or sponsors of all prepaid, unearned

tuition in the event of school closure. Should the school or

its surety bonding company fail to deliver or act to fulfill

the obligation, the Board is in no way responsible for the

repayment or any related damages or claims.

Section 75. Application and renewal fees. Fees for

application and renewal may be set by the Board by rule. Fees

shall be collected for all of the following:

(1) An original school application for a certificate of

approval.

(2) An initial school application for a certificate of

approval upon occurrence of a change of ownership.

(3) An annual school application for renewal of a

certificate of approval.

(4) A school application for a change of location.

(5) A school application for a classroom extension.

(6) If an applicant school that has not remedied all

deficiencies cited by the Board within 12 months after the

date of its original application for a certificate of

approval, an additional original application fee for the

continued cost of investigation of its application.

(7) Transcript processing.

Section 80. Private Business and Vocational Schools

Quality Assurance Fund. The Private Business and Vocational

Schools Quality Assurance Fund is created as a special fund in

the State treasury. All fees collected for the administration

and enforcement of this Act must be deposited into this Fund.

All money in the Fund must be used, subject to appropriation,

by the Board to supplement support for the administration and

enforcement of this Act and must not be used for any other

purpose.

Section 85. Violations under the Act.

(a) The Board's Executive Director has the authority to

order any school subject to this Act to cease and desist

operations if the school is found to have acted contrary to the

standards set forth in this Act or supporting rules.

(b) The Board's Executive Director shall, before refusing

to issue or renew, and before revocation of any certificate or

permit, at least 10 days prior to the date set for the hearing,

notify in writing the applicant for or holder of a certificate

or permit (the respondent) that a hearing shall be held on the

date designated to determine whether the respondent is

privileged to hold such certificate or permit, and shall afford

the respondent an opportunity to be heard in person or by

counsel in reference thereto. The written notice may be served

by delivery of the same personally to the respondent, or by

mailing the same by registered mail to the place of business

last specified by the respondent in the last notification to

the Board's Executive Director. At the time and place fixed in

the notice, the Board's Executive Director or his or her

designated hearing officer shall proceed to hear the charges

and both the respondent and the complainant shall be accorded

ample opportunity to present in person or by counsel such

statements, testimony, evidence, and arguments as may be

pertinent to the charges or to any defense thereto. The Board's

Executive Director or his or her designated hearing officer may

continue such hearing from time to time. If the Board's

Executive Director shall not be sitting at the time and place

fixed in the notice or at the time and place to which the

hearing shall have been continued, the Board's Executive

Director or his or her designated hearing officer shall

continue such hearing for a period not to exceed 30 days.

Failure of the respondent to appear on the date set for hearing

or failure to proceed as ordered by the Board's Executive

Director or his or her designated hearing officer shall

constitute a default and automatic revocation.

(c) The Board's Executive Director is authorized to

subpoena and bring before a hearing officer any person or

persons in this State and to take testimony either orally or by

deposition or by exhibit, with the same fees and mileage and in

the same manner as prescribed by law in judicial proceedings in

civil cases in circuit courts of this State. The Board's

Executive Director or the designated hearing officer shall

administer oaths to witnesses at any hearing that the Board's

Executive Director is authorized by law to conduct.

(d) Any circuit court, upon the application of the

respondent or complainant or of the Board's Executive Director,

may by order duly entered, require the attendance of witnesses

and the production of relevant books and papers before any

hearing the Board's Executive Director is authorized to

conduct, and the court may compel obedience to its order by

proceedings for contempt.

(e) The Board shall establish rules for the appeal of

decisions to revoke the permit of approval. At a minimum, the

rules shall include all of the following:

(1) The school must be notified of the revocation in

writing through registered mail or other appropriate

notification.

(2) The school has 10 business days after notification

to request an appeal of the decision.

(3) The Board shall not be required to schedule a

hearing and has the option to waive a hearing if the

institution has not operated for one continuous, 12-month

period or the institution has been abandoned; however, even

in these cases, the Board shall be required to revoke the

authority at a public hearing at which any opponent who is

injured or impacted by the revocation must be given the

opportunity to be heard.

(4) The Board shall designate a hearing officer, who

shall schedule and conduct a hearing.

(5) The hearing officer shall make a final

administrative decision, which decision may be reviewed

judicially by the circuit court in accordance with

subsection (f) of this Section.

(f) Any person affected by a final administrative decision

of the Board's Executive Director may have such decision

reviewed judicially by the circuit court of the county wherein

the person resides, or in the case of a corporation, wherein

the registered office is located. If the plaintiff in the

review proceeding is not a resident of this State, the venue

shall be in Sangamon County. The provisions of the

Administrative Review Law, and all amendments and

modifications thereof, and the rules adopted pursuant thereto,

shall apply to and govern all proceedings for the judicial

review of final administrative decisions of the Board's

Executive Director. "Administrative decisions" has the same

meaning as in Section 3-101 of the Code of Civil Procedure.

(g) Except for the violations enumerated in subsection (e)

of this Section, any owner, operator, or authorized agent of a

school who knowingly violates any provision of this Act is

guilty of a business offense.

(h) Any owner, operator, or authorized agent of a private

business and vocational school who commits any of the following

offenses is guilty of a Class A misdemeanor for the first

offense and a Class 4 felony for the second or subsequent

offense:

(1) Knowingly, and for the purpose of influencing or

inducing a person to enroll in the program of study offered

by the school, makes any false or misleading statements,

misrepresentations, or false promises to the person

regarding opportunities upon graduation from the school

for (i) employment in a business, industry, or trade, (ii)

admission to an institution of higher learning, or (iii)

admission to an occupational licensing examination.

(2) Knowingly, and with intent to defraud, retains in

excess of the school's refund policy prescribed in this Act

any unearned tuition or fees paid by a student who has

cancelled his or her enrollment agreement and is entitled

to a refund.

(3) Knowingly, and with intent to defraud,

misrepresents that any student who has cancelled his or her

enrollment agreement is presently enrolled in the school,

has completed the program of study, or has graduated from

the school.

(4) Knowingly uses or attempts to use students in any

commercial or manufacturing activity related to the

operation of the school and to the school's advantage and

profit, except to the extent that the school provides the

student with practical experience supplemental to the

course of instruction or except in the case of students who

are employed by the school and compensated for such

employment.

(i) The Board shall adopt rules to pursue resolution of

complaints. At a minimum, the rules shall include all of the

following:

(1) Student complaints must be submitted in writing to

the Board.

(2) Board staff shall contact the school about the

complaint by registered mail or other appropriate

notification. The school has 10 business days to respond to

the Board about the complaint. The Board shall provide a

resolution determination to the school. The school may

request a hearing about the proposed resolution within 10

business days after the delivery of the complaint by

registered mail or other appropriate notification. If the

school does not abide by the resolution determination, then

the Board can issue a cease and desist order to the school.

If the school does not comply with the cease and desist

order, then the Board may revoke the school's permit of

approval.

(3) The complaint may be forwarded to the institution's

accrediting body.

(4) The Board shall annually issue a public report

about the complaints received. At a minimum, the report

shall include the institution, the nature of the complaint,

and the current resolution status of the complaint. No

individual student shall be named in the report.

(j) Upon application of the Board's Executive Director, the

Attorney General or any State's Attorney, the Circuit Court of

each county in which a violation of this Act or the rules and

regulations has occurred, shall have jurisdiction to enjoin any

violation thereof.

(k) The following acts or omissions by an owner, operator,

or authorized agent of a private business and vocational school

shall constitute violations of this Act and unlawful practices

pursuant to the Consumer Fraud and Deceptive Business Practices

Act:

(1) False or misleading statements,

misrepresentations, or false promises that have the

tendency or capacity to influence or induce persons to

enroll in the program of study offered by the school.

(2) Failure or refusal of the school to make the

disclosures in advertising materials in the enrollment

agreement and on its Internet website as required by this

Act, or the making of false or inaccurate statements in

such disclosures.

(3) Failure or refusal of the school to refund fees and

unearned tuition, in accordance with the refund policy

prescribed by this Act, to any student who cancels his or

her enrollment agreement.

(4) Failure or refusal of the school to employ course

instructors under conditions presented to the Board to

satisfy the requirements of this Act or to provide the

equipment, facilities, or services necessary to implement

the program of study as presented to the Board to satisfy

the requirements of the Act.

(l) Whenever the Attorney General or a State's Attorney

receives a complaint against a private business and vocational

school that alleges one or more of the violations enumerated in

subsection (k) of this Section, he or she may conduct an

investigation to determine the validity of the complaint and,

if a violation or violations are found, may use any or all of

the remedies, penalties, or authority granted to him or her by

the Consumer Fraud and Deceptive Business Practices Act to

correct such violations and enforce the provisions of this Act.

Within 10 business days after receipt, the Board shall transmit

to the Attorney General and the appropriate State's Attorney

copies of complaints filed in the Board's office that allege

one or more of the violations enumerated in subsection (k) of

this Section.

(m) Any person who suffers damages as a result of a

violation of this Act committed by a school or its

representative may bring an action against the school. The

court, in its discretion, may award actual damages, treble

actual damages if fraud is proved, injunctive relief, and any

other relief that the court deems proper.

Such action may be commenced in the county where the school

is located or has its principal place of business or in the

county where the transaction or any substantial portion thereof

occurred.

In any action brought by a person under this Section, the

court may award, in addition to the relief provided in this

Section, reasonable attorney's fees and costs to the prevailing

party.

Either party to an action under this Section may request a

trial by jury.

Section 90. Rulemaking authority. The Board shall have

rulemaking authority as necessary and appropriate to implement

this Act. Rulemaking authority to implement this Act, if any,

is conditioned on the rules being adopted in accordance with

all provisions of the Illinois Administrative Procedure Act and

all rules and procedures of the Joint Committee on

Administrative Rules; any purported rule not so adopted, for

whatever reason, is unauthorized.

Section 500. The Department of Professional Regulation Law

of the Civil Administrative Code of Illinois is amended by

changing Section 2105-15 as follows:

(20 ILCS 2105/2105-15)

Sec. 2105-15. General powers and duties.

(a) The Department has, subject to the provisions of the

Civil Administrative Code of Illinois, the following powers and

duties:

(1) To authorize examinations in English to ascertain

the qualifications and fitness of applicants to exercise

the profession, trade, or occupation for which the

examination is held.

(2) To prescribe rules and regulations for a fair and

wholly impartial method of examination of candidates to

exercise the respective professions, trades, or

occupations.

(3) To pass upon the qualifications of applicants for

licenses, certificates, and authorities, whether by

examination, by reciprocity, or by endorsement.

(4) To prescribe rules and regulations defining, for

the respective professions, trades, and occupations, what

shall constitute a school, college, or university, or

department of a university, or other institution,

reputable and in good standing, and to determine the

reputability and good standing of a school, college, or

university, or department of a university, or other

institution, reputable and in good standing, by reference

to a compliance with those rules and regulations; provided,

that no school, college, or university, or department of a

university, or other institution that refuses admittance

to applicants solely on account of race, color, creed, sex,

or national origin shall be considered reputable and in

good standing.

(5) To conduct hearings on proceedings to revoke,

suspend, refuse to renew, place on probationary status, or

take other disciplinary action as authorized in any

licensing Act administered by the Department with regard to

licenses, certificates, or authorities of persons

exercising the respective professions, trades, or

occupations and to revoke, suspend, refuse to renew, place

on probationary status, or take other disciplinary action

as authorized in any licensing Act administered by the

Department with regard to those licenses, certificates, or

authorities. The Department shall issue a monthly

disciplinary report. The Department shall deny any license

or renewal authorized by the Civil Administrative Code of

Illinois to any person who has defaulted on an educational

loan or scholarship provided by or guaranteed by the

Illinois Student Assistance Commission or any governmental

agency of this State; however, the Department may issue a

license or renewal if the aforementioned persons have

established a satisfactory repayment record as determined

by the Illinois Student Assistance Commission or other

appropriate governmental agency of this State.

Additionally, beginning June 1, 1996, any license issued by

the Department may be suspended or revoked if the

Department, after the opportunity for a hearing under the

appropriate licensing Act, finds that the licensee has

failed to make satisfactory repayment to the Illinois

Student Assistance Commission for a delinquent or

defaulted loan. For the purposes of this Section,

"satisfactory repayment record" shall be defined by rule.

The Department shall refuse to issue or renew a license to,

or shall suspend or revoke a license of, any person who,

after receiving notice, fails to comply with a subpoena or

warrant relating to a paternity or child support

proceeding. However, the Department may issue a license or

renewal upon compliance with the subpoena or warrant.

The Department, without further process or hearings,

shall revoke, suspend, or deny any license or renewal

authorized by the Civil Administrative Code of Illinois to

a person who is certified by the Department of Healthcare

and Family Services (formerly Illinois Department of

Public Aid) as being more than 30 days delinquent in

complying with a child support order or who is certified by

a court as being in violation of the Non-Support Punishment

Act for more than 60 days. The Department may, however,

issue a license or renewal if the person has established a

satisfactory repayment record as determined by the

Department of Healthcare and Family Services (formerly

Illinois Department of Public Aid) or if the person is

determined by the court to be in compliance with the

Non-Support Punishment Act. The Department may implement

this paragraph as added by Public Act 89-6 through the use

of emergency rules in accordance with Section 5-45 of the

Illinois Administrative Procedure Act. For purposes of the

Illinois Administrative Procedure Act, the adoption of

rules to implement this paragraph shall be considered an

emergency and necessary for the public interest, safety,

and welfare.

(6) To transfer jurisdiction of any realty under the

control of the Department to any other department of the

State Government or to acquire or accept federal lands when

the transfer, acquisition, or acceptance is advantageous

to the State and is approved in writing by the Governor.

(7) To formulate rules and regulations necessary for

the enforcement of any Act administered by the Department.

(8) To exchange with the Department of Healthcare and

Family Services information that may be necessary for the

enforcement of child support orders entered pursuant to the

Illinois Public Aid Code, the Illinois Marriage and

Dissolution of Marriage Act, the Non-Support of Spouse and

Children Act, the Non-Support Punishment Act, the Revised

Uniform Reciprocal Enforcement of Support Act, the Uniform

Interstate Family Support Act, or the Illinois Parentage

Act of 1984. Notwithstanding any provisions in this Code to

the contrary, the Department of Professional Regulation

shall not be liable under any federal or State law to any

person for any disclosure of information to the Department

of Healthcare and Family Services (formerly Illinois

Department of Public Aid) under this paragraph (8) or for

any other action taken in good faith to comply with the

requirements of this paragraph (8).

(9) To perform other duties prescribed by law.

(a-5) Except in cases involving default on an educational

loan or scholarship provided by or guaranteed by the Illinois

Student Assistance Commission or any governmental agency of

this State or in cases involving delinquency in complying with

a child support order or violation of the Non-Support

Punishment Act, no person or entity whose license, certificate,

or authority has been revoked as authorized in any licensing

Act administered by the Department may apply for restoration of

that license, certification, or authority until 3 years after

the effective date of the revocation.

(b) The Department may, when a fee is payable to the

Department for a wall certificate of registration provided by

the Department of Central Management Services, require that

portion of the payment for printing and distribution costs be

made directly or through the Department to the Department of

Central Management Services for deposit into the Paper and

Printing Revolving Fund. The remainder shall be deposited into

the General Revenue Fund.

(c) For the purpose of securing and preparing evidence, and

for the purchase of controlled substances, professional

services, and equipment necessary for enforcement activities,

recoupment of investigative costs, and other activities

directed at suppressing the misuse and abuse of controlled

substances, including those activities set forth in Sections

504 and 508 of the Illinois Controlled Substances Act, the

Director and agents appointed and authorized by the Director

may expend sums from the Professional Regulation Evidence Fund

that the Director deems necessary from the amounts appropriated

for that purpose. Those sums may be advanced to the agent when

the Director deems that procedure to be in the public interest.

Sums for the purchase of controlled substances, professional

services, and equipment necessary for enforcement activities

and other activities as set forth in this Section shall be

advanced to the agent who is to make the purchase from the

Professional Regulation Evidence Fund on vouchers signed by the

Director. The Director and those agents are authorized to

maintain one or more commercial checking accounts with any

State banking corporation or corporations organized under or

subject to the Illinois Banking Act for the deposit and

withdrawal of moneys to be used for the purposes set forth in

this Section; provided, that no check may be written nor any

withdrawal made from any such account except upon the written

signatures of 2 persons designated by the Director to write

those checks and make those withdrawals. Vouchers for those

expenditures must be signed by the Director. All such

expenditures shall be audited by the Director, and the audit

shall be submitted to the Department of Central Management

Services for approval.

(d) Whenever the Department is authorized or required by

law to consider some aspect of criminal history record

information for the purpose of carrying out its statutory

powers and responsibilities, then, upon request and payment of

fees in conformance with the requirements of Section 2605-400

of the Department of State Police Law (20 ILCS 2605/2605-400),

the Department of State Police is authorized to furnish,

pursuant to positive identification, the information contained

in State files that is necessary to fulfill the request.

(e) The provisions of this Section do not apply to private

business and vocational schools as defined by Section 15 1 of

the Private Business and Vocational Schools Act of 2012.

(f) Beginning July 1, 1995, this Section does not apply to

those professions, trades, and occupations licensed under the

Real Estate License Act of 2000, nor does it apply to any

permits, certificates, or other authorizations to do business

provided for in the Land Sales Registration Act of 1989 or the

Illinois Real Estate Time-Share Act.

(g) Notwithstanding anything that may appear in any

individual licensing statute or administrative rule, the

Department shall deny any license application or renewal

authorized under any licensing Act administered by the

Department to any person who has failed to file a return, or to

pay the tax, penalty, or interest shown in a filed return, or

to pay any final assessment of tax, penalty, or interest, as

required by any tax Act administered by the Illinois Department

of Revenue, until such time as the requirement of any such tax

Act are satisfied; however, the Department may issue a license

or renewal if the person has established a satisfactory

repayment record as determined by the Illinois Department of

Revenue. For the purpose of this Section, "satisfactory

repayment record" shall be defined by rule.

In addition, a complaint filed with the Department by the

Illinois Department of Revenue that includes a certification,

signed by its Director or designee, attesting to the amount of

the unpaid tax liability or the years for which a return was

not filed, or both, is prima facia evidence of the licensee's

failure to comply with the tax laws administered by the

Illinois Department of Revenue. Upon receipt of that

certification, the Department shall, without a hearing,

immediately suspend all licenses held by the licensee.

Enforcement of the Department's order shall be stayed for 60

days. The Department shall provide notice of the suspension to

the licensee by mailing a copy of the Department's order by

certified and regular mail to the licensee's last known address

as registered with the Department. The notice shall advise the

licensee that the suspension shall be effective 60 days after

the issuance of the Department's order unless the Department

receives, from the licensee, a request for a hearing before the

Department to dispute the matters contained in the order.

Any suspension imposed under this subsection (g) shall be

terminated by the Department upon notification from the

Illinois Department of Revenue that the licensee is in

compliance with all tax laws administered by the Illinois

Department of Revenue.

The Department shall promulgate rules for the

administration of this subsection (g).

(h) The Department may grant the title "Retired", to be

used immediately adjacent to the title of a profession

regulated by the Department, to eligible retirees. The use of

the title "Retired" shall not constitute representation of

current licensure, registration, or certification. Any person

without an active license, registration, or certificate in a

profession that requires licensure, registration, or

certification shall not be permitted to practice that

profession.

(i) Within 180 days after December 23, 2009 (the effective

date of Public Act 96-852), the Department shall promulgate

rules which permit a person with a criminal record, who seeks a

license or certificate in an occupation for which a criminal

record is not expressly a per se bar, to apply to the

Department for a non-binding, advisory opinion to be provided

by the Board or body with the authority to issue the license or

certificate as to whether his or her criminal record would bar

the individual from the licensure or certification sought,

should the individual meet all other licensure requirements

including, but not limited to, the successful completion of the

relevant examinations.

(Source: P.A. 95-331, eff. 8-21-07; 96-459, eff. 8-14-09;

96-852, eff. 12-23-09; 96-1000, eff. 7-2-10.)

Section 505. The State Finance Act is amended by adding

Section 5.809 as follows:

(30 ILCS 105/5.809 new)

Sec. 5.809. The Private Business and Vocational Schools

Quality Assurance Fund.

Section 510. The Riverboat Gambling Act is amended by

changing Section 9 as follows:

(230 ILCS 10/9) (from Ch. 120, par. 2409)

Sec. 9. Occupational licenses.

(a) The Board may issue an occupational license to an

applicant upon the payment of a non-refundable fee set by the

Board, upon a determination by the Board that the applicant is

eligible for an occupational license and upon payment of an

annual license fee in an amount to be established. To be

eligible for an occupational license, an applicant must:

(1) be at least 21 years of age if the applicant will

perform any function involved in gaming by patrons. Any

applicant seeking an occupational license for a non-gaming

function shall be at least 18 years of age;

(2) not have been convicted of a felony offense, a

violation of Article 28 of the Criminal Code of 1961, or a

similar statute of any other jurisdiction;

(2.5) not have been convicted of a crime, other than a

crime described in item (2) of this subsection (a),

involving dishonesty or moral turpitude, except that the

Board may, in its discretion, issue an occupational license

to a person who has been convicted of a crime described in

this item (2.5) more than 10 years prior to his or her

application and has not subsequently been convicted of any

other crime;

(3) have demonstrated a level of skill or knowledge

which the Board determines to be necessary in order to

operate gambling aboard a riverboat; and

(4) have met standards for the holding of an

occupational license as adopted by rules of the Board. Such

rules shall provide that any person or entity seeking an

occupational license to manage gambling operations

hereunder shall be subject to background inquiries and

further requirements similar to those required of

applicants for an owners license. Furthermore, such rules

shall provide that each such entity shall be permitted to

manage gambling operations for only one licensed owner.

(b) Each application for an occupational license shall be

on forms prescribed by the Board and shall contain all

information required by the Board. The applicant shall set

forth in the application: whether he has been issued prior

gambling related licenses; whether he has been licensed in any

other state under any other name, and, if so, such name and his

age; and whether or not a permit or license issued to him in

any other state has been suspended, restricted or revoked, and,

if so, for what period of time.

(c) Each applicant shall submit with his application, on

forms provided by the Board, 2 sets of his fingerprints. The

Board shall charge each applicant a fee set by the Department

of State Police to defray the costs associated with the search

and classification of fingerprints obtained by the Board with

respect to the applicant's application. These fees shall be

paid into the State Police Services Fund.

(d) The Board may in its discretion refuse an occupational

license to any person: (1) who is unqualified to perform the

duties required of such applicant; (2) who fails to disclose or

states falsely any information called for in the application;

(3) who has been found guilty of a violation of this Act or

whose prior gambling related license or application therefor

has been suspended, restricted, revoked or denied for just

cause in any other state; or (4) for any other just cause.

(e) The Board may suspend, revoke or restrict any

occupational licensee: (1) for violation of any provision of

this Act; (2) for violation of any of the rules and regulations

of the Board; (3) for any cause which, if known to the Board,

would have disqualified the applicant from receiving such

license; or (4) for default in the payment of any obligation or

debt due to the State of Illinois; or (5) for any other just

cause.

(f) A person who knowingly makes a false statement on an

application is guilty of a Class A misdemeanor.

(g) Any license issued pursuant to this Section shall be

valid for a period of one year from the date of issuance.

(h) Nothing in this Act shall be interpreted to prohibit a

licensed owner from entering into an agreement with a public

community college or a school approved under the Private

Business and Vocational Schools Act of 2012 for the training of

any occupational licensee. Any training offered by such a

school shall be in accordance with a written agreement between

the licensed owner and the school.

(i) Any training provided for occupational licensees may be

conducted either on the riverboat or at a school with which a

licensed owner has entered into an agreement pursuant to

subsection (h).

(Source: P.A. 96-1392, eff. 1-1-11.)

Section 515. The Illinois Public Aid Code is amended by

changing Section 11-2.1 as follows:

(305 ILCS 5/11-2.1) (from Ch. 23, par. 11-2.1)

Sec. 11-2.1. No private business and vocational school, as

defined in the Private Business and Vocational Schools Act of

2012, may solicit an applicant or recipient within a public aid

office or within 100 feet of a public aid office, for the

purpose of enrolling the applicant or recipient in a work or

training program, without the express written consent of the

Illinois Department. Any person violating this Section shall be

guilty of a Class A misdemeanor. "Public aid office" for the

purpose of this Section includes any business office of the

Department where a person may apply for or receive benefits or

services under this Code, the building in which such office is

located, and any parking area connected to such office that is

owned or leased by the State for the benefit of the Department

for use by personnel of the Department or by applicants or

recipients.

(Source: P.A. 85-1383.)

Section 520. The Children's Privacy Protection and

Parental Empowerment Act is amended by changing Section 15 as

follows:

(325 ILCS 17/15)

Sec. 15. Information brokers.

(a) For the purpose of this Act, the consent of a parent to

the sale or purchase of information concerning a child is

presumed unless the parent withdraws consent under this

Section.

A person who brokers or facilitates the sale of personal

information concerning children must, upon written request

from a parent that specifically identifies the child, provide

to the parent within 20 days of the written request procedures

that the parent must follow in order to withdraw consent to use

personal information relating to that child. The person who

brokers or facilitates the sale of personal information must

discontinue disclosing a child's personal information within

20 days after the parent has completed the procedures to

withdraw consent to use personal information relating to that

child.

(b) This Section does not apply to any of the following:

(1) Any federal, state, or local government agency or

any law enforcement agency.

(2) The National Center for Missing and Exploited

Children.

(3) Any educational institution, consortium,

organization, or professional association, including but

not limited to, public community colleges, public

universities, post-secondary educational institutions as

defined in the Private College Act, and private business

and vocational schools as defined in the Private Business

and Vocational Schools Act of 2012.

(4) Any not-for-profit entity that is exempt from the

payment of federal taxes under Section 501(c)(3) of the

Internal Revenue Code of 1986.

(Source: P.A. 93-462, eff. 1-1-04.)

Section 525. The Consumer Fraud and Deceptive Business

Practices Act is amended by adding Section 2MMM as follows:

(815 ILCS 505/2MMM new)

Sec. 2MMM. Violations of the Private Business and

Vocational Schools Act of 2012. A school subject to the Private

Business and Vocational Schools Act of 2012 commits an unlawful

practice within the meaning of this Act when it violates

subsection (k) of Section 85 of the Private Business and

Vocational Schools Act of 2012.

(105 ILCS 425/Act rep.)

Section 900. The Private Business and Vocational Schools

Act is repealed.

Section 999. Effective date. This Act takes effect February

1, 2012.