Title 17. Education

Chapter 24-a. Proprietary Schools

17:3140.3       Licenses; fees; application; renewal

A. (1) No proprietary school subject to the provisions of this Chapter shall do business in this state unless the owner holds a valid license approved and issued by the board. Applications for licensure shall be made to the commission as provided in this Chapter and rules established by the board. 

(2) No course of instruction shall be established, offered, or given, and no diploma, degree, or other written evidence of proficiency or achievement shall be offered or awarded until the owner of the school planning to offer or offering such course of instruction, diplomas, or degrees has obtained a license. 

(3)(a) No license shall be transferable. In the event of a change of ownership of a school, the license shall be revoked unless the new owner notifies the commission within ten days of the sale and files a license application within the time period prescribed by the board. 

(b) If the school is owned by a corporation, a change of ownership is deemed to occur when fifty percent or more of all types in the aggregate of the corporation’s stock has been transferred to a person or persons other than the person or persons who were stockholders at the time the school license was issued. 

(c) For the purposes of this Chapter, an application for a change of ownership for a proprietary school already licensed by the board shall be treated as an initial license application with the additional submission of the bill of sale. 

(4) Each application for a license shall be accompanied by a surety bond in the amount of ten thousand dollars. 

B. (1) The fee for an initial license or change of ownership shall be two thousand dollars. 

(2)(a) The annual renewal fee for any school whose previous year’s gross tuition income is less than fifty thousand dollars shall be five hundred dollars. The annual renewal fee for any school whose previous year’s gross tuition income is equal to or greater than fifty thousand dollars shall be one thousand dollars or the school’s previous year’s gross tuition income multiplied by twenty-five hundredths of one percent, whichever is greater. 

(b) Any income earned by a proprietary school for courses of instruction which are not subject to licensure shall not be used in the calculation of license renewal fees for the school. 

(3) No portion of any fee shall be subject to refund. 

(4) An additional delinquent fee of five hundred dollars shall be imposed when an application for a license renewal is not received at the commission office at least thirty days prior to its expiration date. 

(5) The reinstatement licensure fee for a suspended school shall be five hundred dollars. 

C. An applicant for an initial license shall provide, at a minimum, the following: 

(1) Properly completed application forms provided by the board. 

(2) Documentation of the legal structure of the school. 

(3) A copy of the school’s business plan. 

(4)(a) A current audited balance sheet of the school prepared by an independent, certified public accountant within six months prior to the date of the initial application for licensure. 

(b) Certification by a school official that all information contained in the balance sheet is true and correct. 

(5) Verification of surety bond coverage. 

(6) A list of equipment available for instruction in each course of study offered by the school. 

(7) A copy of the school catalogue as set forth in this Chapter and by rules established by the board. 

(8) A copy of the certificate of occupancy or its equivalent issued by the local governing authority. 

(9) A copy of all enrollment contracts or agreements which students attending the school will be required to sign. 

(10) A copy of all proposed bulletins, published materials, form letters, circulars, and all advertising which will be transmitted to the public or prospective students. 

(11) A copy of current accreditation granted by a nationally or regionally recognized accrediting agency approved by the United States Department of Education, if applicable. 

(12) A detailed outline of each career program, including the number of courses required for completion of each career program and a description of each course. 

(13) A notarized affidavit stating that neither the owner nor solicitor has pleaded guilty to a felony or has been found guilty of a felony. 

(14) Any other information required by the board. 

D. An applicant for a license renewal shall provide, at a minimum, the following: 

(1) Verification of continuation of surety bond coverage. 

(2)(a) Financial statements of the school prepared by an independent certified public accountant for the previous business year. 

(b) Certification by a school official that information contained in the balance sheet is true and correct. 

(3) Documentation of solvency. 

(4) A copy of the current school catalogue as provided in this Chapter and board rules. 

(5) A copy of all enrollment contracts or agreements which students will be required to sign. 

(6) The number of students enrolled, number of students graduated, and the school’s placement rate for the previous business year. 

(7) A copy of current accreditation granted by a nationally or regionally recognized accrediting agency approved by the United States Department of Education, if applicable. 

(8) Properly completed application forms provided by the board. 

E. No license shall be renewed for a school that has failed to make any student tuition refunds in the manner provided by state and federal laws and regulations. 

F. The board may conduct onsite visits and require information as may be necessary to grant a license and monitor institutional compliance with this Chapter. 

Added by Acts 2019, No. 437, § 1.