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(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.
(c) Award one semester credit for no fewer than 45 hours of shop.
(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 404.06Financial 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 404.07Agent 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 404.08Investigation 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 404.09List 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 404.10Fees.
(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.
5. $5,100, if the school is applying for approval of one program which leads to a doctoral degree.
(b) If the school is applying for approval of more than one program, the school shall pay the highest applicable fee specified in par. (a), plus the fee specified in sub. (3) for each additional program for which the school requests approval.
(c) If the school is applying for approval of additional teaching locations, the school shall pay, in addition to the fee specified in par. (a), the fee specified in sub. (4) for each teaching location.
(d) The fees specified in par. (a) shall be reduced by 50% of the program fee specified in sub. (3) for a program of the same level if all of the following conditions are met:
1. The school making application for approval of the program is incorporated in a state other than Wisconsin, has its main campus outside Wisconsin, and offers in Wisconsin only programs leading to a baccalaureate or higher degree.
2. The school presents written evidence of authorization from its home state to offer the program and degree which it desires to offer to Wisconsin residents. The evidence which the school submits to meet this requirement shall include unabridged copies of all findings and program reviews which the home state authorizing agency completed regarding the program.
3. If the school is requesting authorization to enroll Wisconsin residents in a program which it offers in a state other than its home state, the school presents written evidence of program and degree authorization from the state in which the program is offered. The evidence which the school submits to meet this requirement shall include unabridged copies of all findings and program reviews which the state authorizing agency completed regarding the program.
4. The school presents written evidence that it is accredited by an accrediting agency recognized by the U. S. department of education to offer the program and degree which it desires to offer to Wisconsin residents. The evidence which the school submits to meet this requirement shall include unabridged copies of all self-studies which the school submitted to the accrediting agency and unabridged copies of all findings and reviews which the accrediting agency completed regarding the program.
5. The school presents written evidence that its home state gives similar Wisconsin schools at least an equivalent fee reduction in comparable licensing and oversight fees. The evidence which the school submits to meet this requirement shall include a copy of the applicable statutory and regulatory language from the home state.
(e) If the department denies an initial school approval under s. SPS 404.01 (2m), the fees collected under this subsection shall be returned.
(2)Fees for renewal of school approval.
(a) Renewal of approval shall not be for not more than one calendar year. Except as provided in par. (b), a school applying for renewal of approval shall pay renewal fees as provided in pars. (c) and (d).
(b) A school that has not violated s. 440.52 (10), Stats., prior to the effective date of approval need not pay the first payment in the calendar year in which the school paid in full the fees required by sub. (3), but may defer that payment until March 1 of the following year.
(c) A school requesting inactive status shall make a first payment in the amount of $100, no later than September 1 prior to the calendar year for which the school is applying for renewal of approval and shall make a second payment, in the amount determined as provided in par. (d), no later than March 1 of the calendar year for which the school is applying for renewal of approval. If the school resumes active status during the calendar year for which the school is applying for renewal of approval, the school shall make a third payment. The third payment shall be in the amount of $100 for each full calendar month and any portion of a calendar month which is remaining in the calendar year as of the date of resumption of active status, and shall be due by the date of resumption of active status.
(d) Approved schools shall pay annual renewal fees in 2 parts.
1. Each approved school shall make a first payment, in the amount of $500, no later than September 1 prior to the calendar year for which the school is applying for renewal of approval. Each approved school shall make a second renewal payment, in the amount determined as provided in subds. 2. through 4. no later than March 1 of the calendar year for which the school is applying for renewal of approval.
2. The department shall levy a second renewal fee based on the approved school’s adjusted gross annual revenues and set the fee multiplier for 2 year periods at a time.
3. The fee shall be in the form of multiplier equal to the percentage of all schools’ total adjusted gross annual revenue needed to equal the cost of regulating schools subject to s. 440.52 (10), Stats., less revenue from all other fees.
4. The multiplier derived in subd. 3. shall be applied to each school’s adjusted gross annual revenue to determine its second renewal payment.
(e) If a school fails or refuses to provide reliable financial information with which to determine the amount of the second payment, the department may revoke the approval of the school or may use other means to compare the school with other schools by size, estimate the adjusted gross annual revenues of the school and require a second payment based on the estimated adjusted gross annual revenues of the school. The department may also request the department of justice or any district attorney to take action under any other applicable provision of law.
(f) A school which submits an application for renewal of approval or makes the first payment required under par. (c) or (d) after September 1, or which makes the second payment required under par. (c) or (d) after March 1, shall pay, for each month or part of a month the application or payment is late, a fee of $50 or 1.5% of any late first or second payment, whichever is greater, in addition to the fees specified in par. (c) or (d).
(g) The department may waive a fee under this subsection if it is less than $50.
(3)Fees for approval of new or revised programs.
(a) When applying for approval of a new or revised program, a school shall pay the following fee:
1. $1,500, if the program for which the school seeks approval does not lead to a degree.
2. $2,000, if the program for which the school seeks approval leads to an associate degree.
3. $3,000, if the program for which the school seeks approval leads to a baccalaureate degree.
4. $3,500, if the program for which the school seeks approval leads to a master’s degree.
5. $4,500, if the program for which the school seeks approval leads to a doctoral degree.
(b) If a school’s ongoing program modifications result in more than a 50% change in program content within 3 years, it shall pay the fee specified in par. (a).
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.