SPS 404.06(2)(b) (b) The fee shall be established as follows.

SPS 404.06(2)(b)1. 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).

SPS 404.06(2)(b)2. 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.

SPS 404.06(2)(c) (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.

SPS 404.06(2)(d) (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.

SPS 404.06(2)(e) (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.

SPS 404.06(3) (3) Use of surety bonds and student protection funding.

SPS 404.06(3)(a) (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.

SPS 404.06(3)(a)1. 1. Fraud or false representation used in procuring a student’s enrollment.

SPS 404.06(3)(a)2. 2. A violation of chs. SPS 404 to 408.

SPS 404.06(3)(a)3. 3. A student being unable to complete the program or programs because the school failed to perform its contractual obligations.

SPS 404.06(3)(a)4. 4. The refusal of a school to issue a refund to which a student is entitled under ch. SPS 408.

SPS 404.06(3)(b) (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.

SPS 404.06(3)(c) (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.

SPS 404.06(3)(d) (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.

SPS 404.06 History 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 SPS 404.07 Agent for service of process.

SPS 404.07(1) (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.

SPS 404.07(2) (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.

SPS 404.07(3) (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.

SPS 404.07 History 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 SPS 404.08 Investigation and review.

SPS 404.08(1) (1) Periodic Review. The department shall investigate and evaluate all approved schools and programs. The method of review shall include:

SPS 404.08(1)(a) (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.

SPS 404.08(1)(b) (b) Review of reports and statements from the school involved.

SPS 404.08(1)(c) (c) Conferences with officials or representatives of the school involved or with interested persons including former students or parents of former students.

SPS 404.08(1)(d) (d) Investigation by visitation of the school involved.

SPS 404.08(2) (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.

SPS 404.08(2)(a) (a) A student with a complaint against a school shall make a reasonable effort to resolve the complaint directly with the school.