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Wisconsin Legislature: SB630: Bill Text
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SB630: Bill Text
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2025 - 2026 LEGISLATURE
LRB-5162/1
ARG:emw
2025 SENATE BILL 630
November 14, 2025 - Introduced by Senators
Larson
,
Carpenter
,
Hesselbein
and
Spreitzer
, cosponsored by Representatives
Tenorio
,
Clancy
,
DeSmidt
,
Fitzgerald
,
Goodwin
,
Hong
,
Kirsch
,
Madison
,
McCarville
and
Miresse
. Referred to Committee on Universities and Technical Colleges.
SB630,1,2
1
An Act
to create
440.52 (4) of the statutes;
relating to:
funding sources for
2
certain private postsecondary schools and granting rule-making authority.
Analysis by the Legislative Reference Bureau
This bill precludes certain private postsecondary schools, primarily for-profit schools, from enrolling Wisconsin students if more than 80 percent of their revenue is derived from federal student aid programs.
Under current law, the Department of Safety and Professional Services regulates certain private postsecondary institutions, including private for-profit colleges (proprietary schools). Proprietary schools must obtain approval from DSPS before operating in this state and are subject to various operational requirements.
Under federal law, to participate in federal student aid programs, a proprietary school must enter into an agreement that it will derive not less than 10 percent of its revenues from sources other than federal education assistance funds. A proprietary school that violates this agreement for two consecutive years is ineligible to receive federal student aid funds for at least two years thereafter.
The bill incorporates into state law a provision similar to the federal provision, but with modification. Under the bill, a proprietary school may not enroll Wisconsin residents if less than 20 percent of the school’s annual revenue is derived from a source other than federal funds in two of the three preceding fiscal years. DSPS must promulgate rules to administer the prohibition.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB630,1
1
Section
1
.
440.52 (4) of the statutes is created to read:
SB630,2,2
2
440.52
(4)
School revenue source.
(a) In this subsection:
SB630,2,5
3
1. “Annual revenue" means a school’s revenue generated during the school’s
4
fiscal year that may be included in a school’s calculation related to compliance with
5
20 USC 1094
(a) (24).
SB630,2,7
6
2. “Federal funds" means federal education assistance funds, as referenced in
7
20 USC 1094
(a) (24) and calculated in accordance with
20 USC 1094
(d) (1).
SB630,2,10
8
(b) A school may not enroll residents of this state if less than 20 percent of the
9
school’s annual revenue is derived from a source other than federal funds in 2 of 3 of
10
the school’s immediately preceding fiscal years.
SB630,2,11
11
(c) The department shall promulgate rules to administer this subsection.
SB630,2
12
Section
2
. Initial applicability.
SB630,2,13
13
(
1
) This act first applies in the 2028-29 academic year.
SB630,2,14
14
(end)
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