STATE OF WISCONSIN
DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES
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IN THE MATTER OF RULEMAKING : ORDER OF THE
PROCEEDINGS BEFORE THE : DEPARTMENT OF SAFETY
DEPARTMENT OF SAFETY AND : AND PROFESSIONAL SERVICES
PROFESSIONAL SERVICES : ADOPTING RULES : (CLEARINGHOUSE RULE 20-004)
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ORDER
An order of the Department of Safety and Professional Services to repeal SPS 404.07 (1) (Note); to amend SPS 401.01 (29m), 404.07 (1), 404.10 (1) (b) and (2) (d) 1. and 2., 407.04 (1) (d) and 411.04 (1); and to repeal and recreate SPS 404 (Note 2) and 404.01 (6) relating to the educational approval program.
Analysis prepared by the Department of Safety and Professional Services.
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ANALYSIS
Explanation of agency authority:
Section 15.05 (1) (b), Stats., authorizes the secretary of the department to, “promulgate rules for administering … and performing the duties assigned to the department.” Section 227.11 (2) (a), Stats., authorizes the department to “promulgate rules interpreting the provision of any statute enforced or administered by the agency.” Section 440.52 (3), Stats., states that, “the department shall promulgate rules and establish standards necessary to administer this section.” Section 440.52 (7), Stats., directs the department to promulgate rules and standards to do the following: “(a) Investigate the adequacy of courses and courses of instruction offered by schools to residents of this state and establish minimum standards for those courses of instruction.
(b) Investigate the adequacy of schools' facilities, equipment, instructional materials, and instructional programs and establish minimum standards for those facilities, equipment, materials, and programs.
(c) Establish rules, standards, and criteria to prevent fraud and misrepresentation in the sale and advertising of courses and courses of instruction.
(d) Promulgate rules restricting the negotiability of promissory instruments received by schools in payment of tuition and other charges.
(e) Establish minimum standards for refund of the unused portion of tuition, fees, and other charges if a student does not enter a course or course of instruction or withdraws or is discontinued from the course.
(f) Require schools offering courses and courses of instruction to residents of this state to furnish information concerning their facilities, curricula, instructors, enrollment policies, tuition and other charges and fees, refund policies, and policies concerning negotiability of promissory instruments received in payment of tuition and other charges.
(g) Approve courses of instruction, schools, changes of ownership or control of schools, and teaching locations meeting the requirements and standards established by the department and complying with rules promulgated by the department; publish a list of the schools and courses of instruction approved and a list of the schools that are authorized to use the term “college," “university," “state," or “Wisconsin" in their names; and make those lists of the schools available on the department's Internet site.
(h) Issue permits to solicitors when all department requirements have been met.
(i) Require schools to furnish a surety bond in an amount as provided by rule of the department.”
Section 440.52 (8) (b), Stats., states that, “the department shall, by rule, specify the amount of the fee for a solicitor's permit” and that “the department shall, by rule, specify the amount of the fee for renewal of a solicitor's permit.” Section 440.52 (10) (c), Stats., states that the department shall establish the fees to be paid as part of the proprietary school approval process. Related statute or rule: None.
Plain language analysis:
2017 Wisconsin Act 59 eliminated the Educational Approval Board (EAB) and transferred all of its duties to the Department of Safety and Professional Services. This rule project amends the ch. SPS 400 suite to ensure consistency with statutory authority and department structure and available processes. Included among these changes is the removal of references to the EAB, and replacement of references to a “licensed” school with references to an “approved” school. The rule project also revises an obsolete provision relating to hearings for schools denied certification, as provision for such hearings exists under SPS 1-9. Finally, the rule removes a provision allowing the agency to be designated as a school’s agent for service of process.
Summary of, and comparison with, existing or proposed federal regulation:
None.
Comparison with rules in adjacent states:
Illinois: The Illinois Board of Higher Education (IBHE) regulates private vocational schools, providing schools with a permit of approval (23 Ill. Admin. Code s. 1095.20). IBHE rules do not specifically provide for a requirement that the school designate an agent for the service of process but do require that the school have a surety bond of no less than $10,000 (23 Ill. Admin. Code s. 1095.210).
