Private school licensing-amendments-3.

WORKING DRAFT
2005
STATE OF WYOMING
05LSO-0586

SENATE FILE
NO.
SF0164

Private school licensing-amendments-3.

Sponsored by:
Senator(s) Boggs and Decaria and Representative(s) Harshman and Wasserburger

A BILL

for

AN ACT relating to private school licensing; requiring registration of all accredited private degree granting post secondary education institutions as specified; prohibiting operation without registration; eliminating licensure requirements for nonaccredited private degree granting post secondary education institutions; imposing fees; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 21
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2
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401(a), (b) and (d), 21
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2
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402(a), (b)(intro) and (d), 21
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2
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403(a), 21
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2
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404(a) and (d) and 21
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2
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405(a) are amended to read:

21
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2
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401.

License required; registration required for private degree granting post secondary education institutions; state board of education to administer and set minimum standards for licensure.

(a)

Except as provided by subsection (b) of this section, a
ll trade, correspondence, distance education, technical, vocational, business or other private schools
, and all degree granting post secondary education institutions not accredited by an accrediting association recognized by the United States department of education,
which are located within the state or have their principal place of business out of state but doing business in the state, shall be licensed under this article before operating or doing business in this state.

(b)

Any
private
degree granting post secondary education institution
not accredited by an accrediting association recognized by the United States department of education,
shall prior to operating or doing business in this state,
maintain physical facilities as office space which is located in the state either through property owned by the institution or through office space which is subject to a current lease at the time of application. The term of any lease shall be for a minimum of one (1) year from its inception and lease renewal shall be for periods of not less than one (1) year. In addition to W.S. 21
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2
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402(b)(vi), the institution shall provide the state department a copy of each new lease or lease renewal

executed while holding a license under this article. The designated office space shall be staffed on a full-time basis by an employee of the institution. In addition, the institution shall provide the state department with evidence that substantive academic and student service-related activity is conducted at this designated location
be registered with the state board in accordance with this article
.

(d)

The board shall establish minimum standards for all schools described in subsection (a) of this section and provide for the investigation and evaluation of the schools as necessary to administer this article.
In addition, the board shall prior to issuing any license under this article and not less than once every three (3) years thereafter, inspect and visit any place of business of or any place where services are delivered by each degree granting post secondary education institution. The on-site inspection and visitation shall be conducted by a representative of the state department and may occur more frequently if requested by the department. The licensee shall pay the costs of the inspection and visitation according to rule and regulation of the department. Written findings by the department shall be provided to the board and the licensee. To enforce requirements prescribed under subsection (b) of this section, the department may provide for random, unannounced on-site visitations at designated office space locations of any degree granting post secondary education institution.

21
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2
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402.

Licensure; registration of private degree granting post secondary education institutions; fees; suspension and revocation.

(a)

Schools specified under W.S. 21
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2
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401(a) excluding those schools exempt under W.S. 21
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2
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406 and
private degree granting
post secondary education institutions subject to subsection (b) of this section, shall pay an annual license fee established by rule and regulation of the department in an amount that, to the extent practicable, the total revenue generated from the fees collected approximates but does not exceed the direct and indirect costs of administering the regulatory provisions required under this article.

(b)

Private degree granting p
ost secondary education institutions
specified under W.S. 21
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2
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401(a)
shall
annually
apply to the state department of education for
a license
registration
under this article. Application shall be in a manner and on a form prescribed by the department and shall include
:

documentation or other verification of accreditation by an accrediting association recognized by the United States department of education or verification of candidacy status for accreditation. Except as otherwise provided under this subsection, an annual registration fee of one hundred dollars ($100.00) shall be collected by the department prior to issuing a registration certificate under this article. If the applicant is a candidate for accreditation and submits verification of candidacy status, the department shall collect an annual registration fee of one thousand dollars ($1,000.00) for each year the applicant institution remains a candidate, up to a period of not to exceed five (5) years and until the institution receives accreditation. Upon a showing of good cause by the applicant, the five (5) year period of candidacy status may be extended by the department.

(d)

Subject to the requirements of the Wyoming Administrative Procedure Act, the state board may suspend or revoke a
license
registration certificate
issued under this section to any
private degree granting
post secondary education institution for
past or current material misrepresentations or omissions in any information submitted to the department pursuant to this article, for failure of the licensee to report any change in information and other materials required under subsection (b) of this section, for multiple or repeated violations of board requirements to report or take action in a timely manner, or for any other violation of this article. The board shall provide written notice of any violation of this article to the licensee at his last known address, which shall notify the licensee of his opportunity to address any violation of this article and otherwise demonstrate compliance with this article within ten (10) days from the date of notice
loss of accreditation status or accreditation candidacy status during any registration period
.

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403.

Licensing and regulation of qualifications of agents of private schools; fee.

(a)

Agents of those schools specified under W.S. 21
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401(a)
and (b)
who operate in the state and agents employed to solicit resident students by schools located outside the state which are similar to schools specified under W.S. 21
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401(a)
and (b)
, shall be licensed under this article before soliciting students and representing schools in this state.

21
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2
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404.

Operation without license or registration unlawful; soliciting business in public schools; furnishing list of students.

(a)

No person shall operate a school as defined in W.S. 21
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401 in Wyoming and no private school shall conduct business in Wyoming without first obtaining a license
or registration
under this article.

(d)

No school licensed under this article shall claim or advertise to prospective or enrolled students that it is accredited in the United States unless the named accrediting association, commission or other entity is approved by the United States department of education
.
or the council for higher education accreditation.

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405.

Performance bond or other security; amount; exemption.

(a)

Before any school is issued a license under this article, it shall submit to the state department of education a performance bond or other form of security prescribed by rule and regulation of the state department. The bond or other form of security shall be in an amount specified by department rule and regulation subject to limitations prescribed by this subsection. The bond for
a degree granting post secondary education institution shall be not less than one hundred thousand dollars ($100,000.00) and for all other
private schools except those schools excluded under subsection (b) of this section
and private degree granting posit secondary education institutions registered under this article
, shall be not more than ten thousand dollars ($10,000.00). The bonds or other form of security shall be approved by the attorney general and shall be renewed annually as long as the school retains its license to do business in Wyoming. The performance bond or other form of security is to assure protection of all persons enrolled in a course of study who may be aggrieved by any school doing business or operating in the state. The department of education is custodian of all bonds and other securities filed under this section and may render administrative but not legal assistance to all aggrieved persons who may be entitled to relief under the bond.

Section 2.

W.S. 21
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402(b)(i) through (xii) and (c), 21
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404(c) and 21
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406(a)(i)(B) and (b) are repealed.

Section 3.

This act is effective July 1, 2005.

(END)

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SF0164