Wisconsin Legislature: SPS 404.05(5)(c)

(2) Facilities. The school shall have adequate space, suitable and sufficient equipment, and sufficient and appropriate instructional materials to carry out its program.

(3) Advertising. All advertising and promotional materials shall be consistent with the requirements set forth in ch. SPS 405.

(4) Refund policy. The school shall have a policy for refund of unused portions of tuition, fees and other charges at least equal to the established minimum standards as set forth in ch. SPS 408.

(5) Access.

(a) A school may not deny enrollment to any student, or make any distinction or classification of students, solely on account of sex, race or creed.

(b) A school must make reasonable accommodations for students and employees with disabilities.

(6) The school must be shown to be in sound financial condition.

(7) Outcomes and evaluation.

(a) A school shall have procedures to evaluate its educational programs, improve instruction and review overall operations.

(b) Evaluations shall include student, alumni and employer feedback on the effectiveness of the curriculum.

(c) The school shall provide annual enrollment information, using its definitions, delineating number of dropouts, completers, graduates and employed.

History: Cr. Register, December, 1972, No. 204, eff. 1-1-73; am. (3) (a) and (5), cr. (8), Register, June, 1990, No. 414, eff. 7-1-90; renum. from EAB 5.06, am. (1) (a), (b), (c), (2), r. (1) (d), (3), (6) and (8), cr. (1) (d), (5), (7) and (8), renum. (4), (5) and (7) to be (3), (4) and (6) and am., Register, October, 1997, No. 502, eff. 12-1-97; CR 02-135: r. (8) Register April 2003 No. 568, eff. 5-1-03; CR 03-126: cr. (1) (cm) Register May 2004 No. 581, eff. 6-1-04; correction in (3), (4) made under s. 13.92 (4) (b) 7., Stats., Register November 2017 No. 743.

SPS 404.05 Approval of subjects and programs on a credit basis.

(1) A school may measure a program in degree credits if:

(a) The program was approved as a degree program.

(2) A school may measure a program in vocational credits if the program was approved in vocational credits.

(3) A school which seeks approval to offer a new or revised program on a credit basis shall:

(a) Pay the fee specified in s. SPS 404.10 (3);

(b) Specify on the application for approval whether the school uses quarter or semester credits;

(d) Meet the requirements of ss. SPS 404.05, 404.06, 404.07 and 404.08.

(4) A school which seeks approval to convert an approved program from hours to credits shall:

(a) Pay the fee specified in s. SPS 404.10 (3);

(b) Specify on the application for approval whether the school uses quarter or semester credits;

(d) Meet the requirements of ss. SPS 404.05, 404.06, 404.07 and 404.08.

(5) In addition to meeting the requirements in sub. (3) or (4) as appropriate, a school which seeks approval of a program measured on a quarter credit basis shall:

(a) Award one quarter credit for no fewer than 10 hours of lecture, plus 20 hours of outside preparation or the equivalent.

(b) Award one quarter credit for no fewer than 20 hours of laboratory work plus necessary outside preparation.

(d) Award one quarter credit for no fewer than 30 hours of off-campus practical training such as a residency, externship, internship, or practicum.

(6) In addition to meeting the requirements in sub. (3) or (4) as appropriate, a school which seeks approval of a program measured on a semester credit basis shall:

(a) Award one semester credit for no fewer than 15 hours of lecture, plus 30 hours of outside preparation or the equivalent.

(b) Award one semester credit for no fewer than 30 hours of laboratory work plus necessary outside preparation.

(d) Award one semester credit for no fewer than 45 hours of off-campus practical training such as a residency, externship, internship, or practicum.

History: Cr. Register, June, 1990, No. 414, eff. 7-1-90; am. (3) (intro.), (a), (4) (intro.) and (5) (intro.), cr. (3m), Register, March, 1993, No. 447, eff. 4-1-93; renum. from EAB 5.065, am. (1) (a), (2), (3), r. (1) (b), renum. (3m), (4), (5) to be (4), (5), (6) and am., Register, October, 1997, No. 502, eff. 12-1-97; correction in (3) (a), (d), (4) (a), (d) Register November 2017 No. 743.

SPS 404.06 Financial stability and student protection.

(1) Surety bonds.

(a) As a condition of obtaining and retaining approval, a school shall provide a surety bond on a form specified by the department. Except as provided in pars. (b) and (c), the amount of surety shall be the lesser of $25,000 or 125% of unearned tuition.

(b) No surety bond may be less than $1,000 or an amount equal to $2,000 for each representative the school employs.

(c) The bonding requirements set forth in this section may be reduced upon a determination that they are excessive in relation to the risk of economic loss to which Wisconsin residents are exposed in the case of any particular school, based upon evidence of a stable fiscal history, satisfactory completion and placement rates, accreditation by a recognized accrediting body or other stability criteria the schools may offer for department review.

(d) The bond shall be executed by the school as principal and by a surety company qualified and authorized to do business in the state of Wisconsin as a surety.

(e) A surety on a bond may be released after the surety has provided written notice directed to the department at least 30 days prior to the release.

(2) Student protection fee.

(a) Except as provided under par. (e), in addition to the fees under s. SPS 404.10, a school shall pay a student protection fee.

(b) The fee shall be established as follows.

1. Except as provided in subd. 2., at a rate of $0.50 per $1,000 of adjusted gross annual school revenue as reported in accordance with ss. SPS 404.01 (4) and 404.10 (2) (d).

2. If at any time the appropriation balance of s. 20.165 (1) (jr), Stats., is less than $500,000, at a rate determined by the department based on a multiplier equal to the percentage of all schools’ total adjusted gross annual revenue needed to bring the appropriation under s. 20.165 (1) (jr), Stats., to $500,000, but not to exceed $10,000 for an individual school.

(c) The fee shall paid at the same time the school makes its second payment annual renewal fee as required under s. SPS 404.10 (2) (d) and is due no later than March 1 of the calendar year for which the school is applying for renewal.

(d) A school that makes the student protection fee payment required after March 1, shall pay for each month or part of a month the payment is late, a late fee of $50 or 1.5% of the student protection fee payment, whichever is greater.

(e) The department shall discontinue collecting student protection fees under this subsection during the period that the balance of the appropriation under s. 20.165 (1) (jr), Stats., exceeds $1,000,000.

(3) Use of surety bonds and student protection funding.

(a) The department may use a surety bond on which it has collected to provide indemnification to any student, parent, guardian, or sponsor suffering loss or damage as a result of the following.

1. Fraud or false representation used in procuring a student’s enrollment.

2. A violation of chs. SPS 404 to 408.

3. A student being unable to complete the program or programs because the school failed to perform its contractual obligations.

4. The refusal of a school to issue a refund to which a student is entitled under ch. SPS 408.

(b) Indemnification under this section may not exceed the advanced tuition, book fees, supply fees, or equipment fees paid or liable to be paid for regardless of the number of years that a school’s bond is in force. The aggregate liability of the surety bond may not exceed the penal sum of the bond. The surety bond may be continuous.

(c) To the extent that the surety bond is unable to fully cover the losses incurred by a student, parent, guardian, or sponsor when a school closes, the department may authorize the full or partial payment of those losses from the student protection appropriation under s. 20.165 (1) (jr), Stats.

(d) The department may use a surety bond on which is has collected or funds from the student protection appropriation to arrange for a teach–out of students.

History: Cr. Register, December, 1972, No. 204, eff. 1-1-73; am. (2), Register, June, 1990, No. 414, eff. 7-1-90; renum. from EAB 5.07, am. (1) and (5), renum. (2) to be (3) and am., cr. (2), Register, October, 1997, No. 502, eff. 12-1-97; CR 02-135: am. (1), (3) and (5), cr. (6) Register April 2003 No. 568, eff. 5-1-03; CR 03-126: r. and recr. Register May 2004 No. 581, eff. 6-1-04; CR 05-112: am. (2) (b) (intro.), cr. (2) (b) 1. and 2. Register April 2006 No. 604, eff. 5-1-06; corrections in (2) (e) and (3) (c) made under s. 13.93 (2m) (b) 7., Stats., Register April 2006 No. 604; correction in (1) (a), (c), (e), (2) (b) 2., (e), (3) (a), (c), (d) made under s. 13.92 (4) (b) 6., Stats., and correction in (2) (a), (b) 1., 2., (c), (e), (3) (a) 2., 4., (c) made under s. 13.92 (4) (b) 7., Stats., Register November 2017 No. 743; correction in (3) (a) 2. made under s. 13.92 (4) (b) 7., Stats., Register December 2018 No. 756.

SPS 404.07 Agent for service of process.

(1) All schools seeking approval must provide the name and Wisconsin address of a designated agent upon whom any process, notice, or demand may be served.

(2) If during any period a school fails to appoint or maintain in this state an agent for service of process, such failure shall be cause for revocation of approval.

(3) Nothing herein contained shall limit or affect the right to serve any process, notice or demand required or permitted by law to be served upon a foreign corporation in any other manner now or hereafter permitted by law.

History: Cr. Register, December, 1972, No. 204, eff. 1-1-73; renum. from EAB 5.08 and am. (1) and (2), Register, October, 1997, No. 502, eff. 12-1-97; correction in (1) made under s. 13.92 (4) (b) 6., Stats., Register November 2017 No. 743; CR 20-004: am. (1) Register June 2020 No. 774, eff. 7-1-20.

SPS 404.08 Investigation and review.

(1) Periodic Review. The department shall investigate and evaluate all approved schools and programs. The method of review shall include:

(a) Information from the following: federal trade commission, better business bureaus, the Wisconsin department of justice, other state or other official approval agencies, local school officials or interested persons.

(b) Review of reports and statements from the school involved.

(c) Conferences with officials or representatives of the school involved or with interested persons including former students or parents of former students.

(d) Investigation by visitation of the school involved.

(2) Complaints. In addition to investigation upon its own initiative, the department may investigate any school and its programs upon receipt of a complaint from an interested person.

(a) A student with a complaint against a school shall make a reasonable effort to resolve the complaint directly with the school.

(b) The department shall conduct an investigation upon receipt of a written complaint filed within one year after the student’s last recorded date of attendance;

1. If preliminary findings indicate a violation of s. 440.52, Stats., or chs. SPS 404 to 411, or of an established school policy, the department shall attempt, through mediation to bring about a settlement.

2. If a settlement proposed by the department is rejected by a school, the department may conduct a hearing and impose any of the intermediate sanctions under s. SPS 404.01 (4m) or subject the school to a summary suspension of its approval.

3. If a complaint charging fraud or false representation used in procuring a student’s enrollment is upheld and if a settlement cannot be reached, the department shall make a demand upon the schools bond and if not paid shall bring action in any court in the state of Wisconsin.

History: Cr. Register, October, 1997, No. 502, eff. 12-1-97; CR 02-135: am. (2) (b) 1. and r. and recr. (2) (b) 2. Register April 2003 No. 568, eff. 5-1-03; correction in (2) (b) 1. made under s. 13.93 (2m) (b) 7., Stats., Register April 2006 No. 604; correction in (1), (2) (intro.), (b) made under s. 13.92 (4) (b) 6., Stats., and correction in (2) (b) 1., 2. made under s. 13.92 (4) (b) 7., Stats., Register November 2017 No. 743.

SPS 404.09 List of approved schools and courses of instruction. A directory of approved schools and programs shall be distributed to all approved schools and to others upon request.

History: Cr. Register, December, 1972, No. 204, eff. 1-1-73; renum. from EAB 5.10, am. (1), r. (2), Register, October, 1997, No. 502, eff. 12-1-97.

SPS 404.10 Fees.

(1) Fees for initial school approval.

(a) A school which is not approved to operate or do business in this state and which is applying for approval shall pay a fee of:

1. $2,000, if the school is applying for approval of one program which does not lead to a degree.

2. $2,500, if the school is applying for approval of one program which leads to an associate degree.

3. $3,300, if the school is applying for approval of one program which leads to a baccalaureate degree.

4. $3,900, if the school is applying for approval of one program which leads to a master’s degree.