House Introduced Bill 5909

HOUSE BILL No. 5909

April 16, 2002, Introduced by Rep. Kooiman and referred to the Committee on Employment Relations, Training and Safety.

A bill to amend 1943 PA 148, entitled

"An act to provide for the regulation and licensing of propri-
etary schools in the state; to require surety; to provide for
collection and disposition of fees; and to prescribe penalties
for the violation of this act,"

by amending sections 1, 1a, 2, 2a, and 2b (MCL 395.101, 395.101a,

395.102, 395.102a, and 395.102b), sections 1, 2, 2a, and 2b as

amended and section 1a as added by 1983 PA 60.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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Sec. 1. (1) A proprietary school shall secure from the

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board DEPARTMENT a license issued in the form prescribed by the

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board DEPARTMENT and in accordance with this act.

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(2) A license issued under this act shall be valid for not

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more than 1 year. If the applicant continues to comply with this

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act and the rules promulgated under this act, the license may be

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renewed.

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(3) The license may be revoked at any time if, in the

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judgment of the board DEPARTMENT, the person to whom the

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license is issued is not complying with provisions of the law or

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the rulings of the board DEPARTMENT.

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(4) A person shall not be granted a temporary permit or a

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license to operate a proprietary school as part of, or in con-

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junction with, another business or commercial enterprise which

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THAT utilizes or sells goods or services produced by students.

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Sec. 1a. As used in this act:

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(a) "Board" means the state board of education

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"DEPARTMENT" MEANS THE DEPARTMENT OF CAREER DEVELOPMENT.

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(b) "Person" means an individual, partnership, corporation,

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association, organization, or other legal entity.

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(c) "Proprietary school" means a school that uses a certain

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plan or method to teach a trade, occupation, or vocation for a

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consideration, reward, or promise of whatever nature.

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Proprietary school includes, but is not limited to, a private

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business, trade, or home study school. Proprietary school does

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not include the following:

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(i) A school or college possessing authority to grant

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degrees.

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(ii) A school licensed by law through another board of this

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state.

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(iii) A school maintained or a program conducted, without

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profit, by a person for that person's employees.

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Sec. 2. (1) A license shall not be issued until the

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applicant has operated under a temporary permit in a manner

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satisfactory to the board DEPARTMENT and until the board

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DEPARTMENT has approved the method and content of the advertis-

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ing, the standards and the methods of instruction, the personnel,

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and the operating and instructional practices of the school.

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(2) A temporary permit to operate a proprietary school may

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be granted on the basis of a written proposal submitted in the

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manner and form prescribed by the board DEPARTMENT. The pro-

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posal shall include plans for facilities, instructional proce-

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dures, personnel, business standards, and operating and instruc-

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tional practices which THAT comply with this act and with rules

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promulgated under this act. A temporary permit issued under this

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act shall be valid for not more than 1 year. If the applicant

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continues to comply with this act and the rules promulgated under

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this act, a temporary permit may be renewed.

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Sec. 2a. (1) The board DEPARTMENT shall provide for ade-

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quate inspection of all proprietary schools. The board

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DEPARTMENT shall promulgate rules pursuant to the administrative

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procedures act of 1969, Act No. 306 of the Public Acts of 1969,

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being sections 24.201 to 24.315 of the Michigan Compiled Laws

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1969 PA 306, MCL 24.201 TO 24.328, and employ the personnel nec-

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essary to carry out this act. A proprietary school shall submit

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reports required by the board DEPARTMENT and shall make avail-

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able to authorized representatives of the board DEPARTMENT all

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records pertaining to the instructional program of the school or

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to any individual student or enrollee.

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(2) The board DEPARTMENT shall set and collect fees for

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licenses, temporary permits, and renewals issued under this act.

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The fees shall be used solely for administrative expenses

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incurred under this act.

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(3) The board DEPARTMENT shall exercise jurisdiction and

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control over proprietary schools and solicitors for proprietary

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schools consistent with this act and Act No. 40 of the Public

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Acts of 1963, being sections 395.121 to 395.125 of the Michigan

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Compiled Laws 1963 PA 40, MCL 395.121 TO 395.125.

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Sec. 2b. A proprietary school shall provide the board

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DEPARTMENT with evidence of surety conditioned to provide indem-

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nification to a student suffering loss because of inability to

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complete an approved course or program of study due to the clos-

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ing of the proprietary school. A surety may consist of a bond,

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the amount of which shall be determined according to rules

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promulgated by the board DEPARTMENT. Surety shall expire on

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June 30 following the date of issuance and proof of renewal shall

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be submitted to the board DEPARTMENT prior to the date of

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expiration. Failure to submit evidence of surety shall invali-

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date a license to operate a proprietary school. This section

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does not apply to a proprietary school with a license issued by

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the board prior to November 2, 1967.

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