SENATE BILL No. 1285
May 7, 2002, Introduced by Senator GOSCHKA and referred to the Committee on
Appropriations.
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:
1 Sec. 1. (1) A proprietary school shall secure from the
2 board
DEPARTMENT a license issued in the form
prescribed by the
3 board
DEPARTMENT and in accordance with this act.
4 (2) A license issued under this act shall be valid for not
5 more than 1 year. If the applicant continues to comply with this
6 act and the rules promulgated under this act, the license may be
7 renewed.
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1 (3) The license may be revoked at any time if, in the
2 judgment of the
board DEPARTMENT, the person to
whom the
3 license is issued is not complying with provisions of the law or
4 the rulings of the
board DEPARTMENT.
5 (4) A person shall not be granted a temporary permit or a
6 license to operate a proprietary school as part of, or in con-
7 junction with, another business
or commercial
enterprise which
8 THAT utilizes or sells goods or services produced by students.
9 Sec. 1a. As used in this act:
10 (a) "Board"
means the state board of
education
11 "DEPARTMENT" MEANS THE DEPARTMENT OF CAREER DEVELOPMENT.
12 (b) "Person" means an individual, partnership, corporation,
13 association, organization, or other legal entity.
14 (c) "Proprietary school" means a school that uses a certain
15 plan or method to teach a trade, occupation, or vocation for a
16 consideration, reward, or promise of whatever nature.
17 Proprietary school includes, but is not limited to, a private
18 business, trade, or home study school. Proprietary school does
19 not include the following:
20 (i) A school or college possessing authority to grant
21 degrees.
22 (ii) A school licensed by law through another board of this
23 state.
24 (iii) A school maintained or a program conducted, without
25 profit, by a person for that person's employees.
26 Sec. 2. (1) A license shall not be issued until the
27 applicant has operated under a temporary permit in a manner
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1 satisfactory to the
board DEPARTMENT and until
the board
2 DEPARTMENT has approved the method and content of the advertis-
3 ing, the standards and the methods of instruction, the personnel,
4 and the operating and instructional practices of the school.
5 (2) A temporary permit to operate a proprietary school may
6 be granted on the basis of a written proposal submitted in the
7 manner and form prescribed by
the board
DEPARTMENT. The pro-
8 posal shall include plans for facilities, instructional proce-
9 dures, personnel, business standards, and operating and instruc-
10 tional practices
which THAT comply with this act
and with rules
11 promulgated under this act. A temporary permit issued under this
12 act shall be valid for not more than 1 year. If the applicant
13 continues to comply with this act and the rules promulgated under
14 this act, a temporary permit may be renewed.
15 Sec. 2a. (1) The
board DEPARTMENT shall
provide for ade-
16 quate inspection of all
proprietary schools. The
board
17 DEPARTMENT shall promulgate rules pursuant to the administrative
18 procedures act of 1969,
Act No. 306 of the Public
Acts of 1969,
19 being sections
24.201 to 24.315 of the Michigan
Compiled Laws
20 1969 PA 306, MCL 24.201 TO 24.328, and employ the personnel nec-
21 essary to carry out this act. A proprietary school shall submit
22 reports required by the
board DEPARTMENT and
shall make avail-
23 able to authorized
representatives of the board
DEPARTMENT all
24 records pertaining to the instructional program of the school or
25 to any individual student or enrollee.
26 (2) The board
DEPARTMENT shall set and
collect fees for
27 licenses, temporary permits, and renewals issued under this act.
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1 The fees shall be used solely for administrative expenses
2 incurred under this act.
3 (3) The board
DEPARTMENT shall exercise
jurisdiction and
4 control over proprietary schools and solicitors for proprietary
5 schools consistent with this act
and Act No. 40 of
the Public
6 Acts of 1963, being
sections 395.121 to 395.125 of
the Michigan
7 Compiled Laws
1963 PA 40, MCL 395.121 TO 395.125.
8 Sec. 2b. A proprietary
school shall provide
the board
9 DEPARTMENT with evidence of surety conditioned to provide indem-
10 nification to a student suffering loss because of inability to
11 complete an approved course or program of study due to the clos-
12 ing of the proprietary school. A surety may consist of a bond,
13 the amount of which shall be determined according to rules
14 promulgated by the
board DEPARTMENT. Surety
shall expire on
15 June 30 following the date of issuance and proof of renewal shall
16 be submitted to the
board DEPARTMENT prior to the
date of
17 expiration. Failure to submit evidence of surety shall invali-
18 date a license to operate a proprietary school. This section
19 does not apply to a proprietary
school with a
license issued by
20 the board
prior to November 2, 1967.
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