HB-6372, As Passed House, September 7, 2006
August 30, 2006, Introduced by Reps. Emmons, Farhat, Nitz, Mortimer and Moore and referred to the Committee on Higher Education and Career Preparation.
A bill to amend 1943 PA 148, entitled
"An act to provide for the regulation and licensing of proprietary
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:
Sec.
1. (1) A proprietary school shall secure from the board
superintendent of public instruction a license issued in the form
prescribed
by the board superintendent
of public instruction and
in accordance with this act.
(2) A license issued under this act shall be valid for not
more than 1 year. If the applicant continues to comply with this
act and the rules promulgated under this act, the license may be
renewed.
(3) The license may be revoked at any time if, in the judgment
of
the board superintendent
of public instruction, the person to
whom
the license is issued is not complying with provisions of the
law
or the rulings of the board applicable
law.
(4) A person shall not be granted a temporary permit or a
license to operate a proprietary school as part of, or in
conjunction
with, another business or commercial enterprise which
that utilizes or sells goods or services produced by students.
Sec. 1a. As used in this act:
(a)
"Board" means the state board of education.
(a) (b)
"Person" means an individual, partnership,
corporation, association, organization, or other legal entity.
(b) (c)
"Proprietary school" means a school that
uses a
certain plan or method to teach a trade, occupation, or vocation
for a consideration, reward, or promise of whatever nature.
Proprietary school includes, but is not limited to, a private
business, trade, or home study school. Proprietary school does not
include any of the following:
(i) A school or college possessing authority to grant degrees.
(ii) A school licensed by law through another board
agency of
this state.
(iii) A school maintained or a program conducted, without
profit, by a person for that person's employees.
Sec.
2. (1) A license shall not be issued The superintendent
of public instruction shall not issue a license to an applicant
until the applicant has operated under a temporary permit in a
manner
satisfactory to the board superintendent
of public
instruction
and until the board
superintendent of public
instruction has approved the method and content of the advertising,
the standards and the methods of instruction, the personnel, and
the operating and instructional practices of the school.
(2) A
The superintendent of public
instruction may grant a
temporary
permit to operate a proprietary school
may be granted
on the basis of a written proposal submitted in the manner and form
prescribed
by the board superintendent
of public instruction. The
proposal shall include plans for facilities, instructional
procedures, personnel, business standards, and operating and
instructional
practices which that
comply with this act and with
rules promulgated under this act. A temporary permit issued under
this act shall be valid for not more than 1 year. If the applicant
continues to comply with this act and the rules promulgated under
this act, a temporary permit may be renewed.
Sec.
2a. (1) The board superintendent
of public instruction
shall provide for adequate inspection of all proprietary schools.
The board
superintendent of public
instruction shall promulgate
rules
pursuant to the administrative procedures act of 1969, Act
No.
306 of the Public Acts of 1969, being sections 24.201 to 24.315
of
the Michigan Compiled Laws 1969
PA 306, MCL 24.201 to 24.328,
and employ the personnel necessary to carry out this act. A
proprietary
school shall submit reports required by the board
superintendent of public instruction and shall make available to
authorized
representatives of the board superintendent
of public
instruction all records pertaining to the instructional program of
the school or to any individual student or enrollee.
(2)
The board superintendent
of public instruction shall set
and collect fees for licenses, temporary permits, and renewals
issued under this act. The fees shall be used solely for
administrative expenses incurred under this act.
(3)
The board superintendent
of public instruction shall
exercise jurisdiction and control over proprietary schools and
solicitors
for proprietary schools consistent with this act and
Act
No. 40 of the Public Acts of 1963, being sections 395.121 to
395.125
of the Michigan Compiled Laws 1963
PA 40, MCL 395.121 to
395.125.
Sec.
2b. A proprietary school shall provide the board
superintendent of public instruction with evidence of surety
conditioned to provide indemnification to a student suffering loss
because of inability to complete an approved course or program of
study due to the closing of the proprietary school. A surety may
consist of a bond, the amount of which shall be determined
according
to rules promulgated by the board superintendent
of
public instruction. Surety shall expire on June 30 following the
date of issuance and proof of renewal shall be submitted to the
board
prior to superintendent of
public instruction before the
date of expiration. Failure to submit evidence of surety shall
invalidate
a license to operate a proprietary school. This section
does
not apply to a proprietary school with a license issued by the
board
prior to November 2, 1967.
Enacting section 1. This amendatory act is intended to
transfer back to the superintendent of public instruction certain
powers, duties, and functions that were transferred to the former
department of career development by Executive Reorganization Order
No. 1999-7, MCL 388.995.