HOUSE BILL No. 6372

 

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.