TITLE 17. EDUCATION
CHAPTER 24-A. PROPRIETARY SCHOOLS
17:3141.4 Licenses
A. (1) On and after October 1, 1972, no proprietary school covered by the provisions of this Chapter shall do business in this state unless the owner thereof holds a valid license approved and issued by the State Board of Elementary and Secondary Education or, beginning July 1, 1999, the Board of Regents. Applications for such licenses shall be made to the commission and shall be issued to each applicant who meets the qualifications set forth in this Chapter and such rules established by the Board of Regents and regulations as are established by the commission in conformity therewith.
(2)(a) On and after October 1, 1972, no course of instruction shall be established, offered or given, and no diploma, degree, or other written evidence of proficiency or achievement shall be offered or awarded until the owner of the school planning to offer or offering such course of instruction, diplomas, or degrees has obtained a license. Unless the prior written approval of the Board of Regents shall have been obtained on or before June 1, 2000, no student enrollment in such course of instructions shall be solicited through advertising, agents, mail circulars, or other means. Any such approval shall be granted at the discretion of the board. Such approval, if given, shall require that copies of any written materials used for such solicitation be provided to the board and any monies received from prospective students by an applicant school prior to receipt of its proprietary school license, whether for application fees, tuition or otherwise, shall be placed in an escrow account in favor of the Board of Regents.
(b) Courses, classes, or programs in progress on October 1, 1971, may continue until completed.
B. (1) The initial license fee shall be two thousand dollars. The annual renewal fee for any school whose previous year's gross tuition income is less than fifty thousand dollars shall be five hundred dollars. The annual renewal fee for any school whose previous year's gross tuition income is equal to or greater than fifty thousand dollars shall be one thousand dollars, or the school's previous year's gross tuition income multiplied by twenty-five hundredths of one percent, whichever is greater.
(2) If the application for a license renewal is not received at the commission office at least thirty days prior to its expiration date, in addition to the renewal fee, there shall be a delinquent fee of five hundred dollars. The annual license fee for a sales representative shall be one hundred dollars. The reinstatement licensure fee for a suspended school shall be five hundred dollars. No portion of any license fee shall be subject to refund.
(3) Any income earned by a proprietary school for courses of instruction which are not subject to licensure shall not be used in the calculation of license renewal fees for such school.
(4) For the purposes of this Chapter, an application for a change of ownership for a proprietary school already licensed by the Board of Regents shall be treated as an initial license application.
C. The application for an initial license or for a change of ownership shall require from the applicant the following minimum information:
(1) The name of the applicant and the name of the proprietary school offering the course of instruction.
(2) The addresses of the applicant and the school or schools, administrative offices, dormitories and cafeterias, and any other food service and housing establishments connected in any way to the school.
(3) The legal structure of the school (individually owned, partnership or corporation) and the names and addresses of all owners of the school, and if owned by a corporation, the date and state of incorporation, the charter number, and the names and addresses of the officers, directors and all stockholders owning more than five percent of the outstanding shares of the corporation.
(4) An audited balance sheet of the school prepared within six months prior to the date of the initial application for licensure or the effective date of a change of ownership by a certified public accountant.
(5) The names, addresses, educational and teaching qualifications and teaching fields of all instructors employed by the school.
(6) A list of equipment available for instruction in each course of study taught by the school.
(7) The maximum number of students to be enrolled in each course of instruction offered by the school and the ratio of equipment and instructors to students.
(8) The specific fields and courses of instruction which will be offered and the specific purpose of such instruction.
(9) A copy of all contracts or agreements which will be signed by students attending said school.
(10) A copy of all current catalogues, bulletins, published materials, form letters, circulars, and all advertising copy which is transmitted to the public or prospective students.
(11)(a) An affidavit by each owner, and solicitor containing all of the following information:
(i) The full name and address of the person and the capacity in which he serves the school.
(ii) The city, parish or county, and state of the person's permanent residence and places of residence for the past five years.
(iii) The name and address of the person's employer or employers for the past five years.
(iv) Whether or not the person has ever been convicted of a felony or a crime involving fraud or any misdemeanor other than a traffic violation.
(v) Three persons who may be contacted concerning the person's good moral character.
(b) Notwithstanding the provisions of this Paragraph, in the case of office and clerical personnel, the owner may submit an affidavit setting forth the above information concerning all clerical and office personnel, which information shall be based upon the owner's investigation and knowledge. Information submitted to the commission pursuant to the provisions of this Section shall not be open to public inspection.
(12) A copy of all written contracts or written outlines of all oral commitments or agreements made by the applicant with an apparent house owner for student housing, or with the owner of an establishment serving food to students, or with any other person planning to perform services for the students to be enrolled and to whom the students may be referred by the school.
(13) A detailed outline of each career program, including the number of courses required for completion of each career program and a description of each course.
(14) Any other information as may be required by the Board of Regents.
D. (1)(a) Any proprietary school accredited by a nationally recognized accrediting agency approved by the United States Office of Education under the provisions of Chapter 33, Title 38, U.S. Code, and subsequent federal legislation which requires the evaluation of such agencies and the issuance of an official list by that office shall not be required to file the information required by Paragraphs (4) through (14) of Subsection C of this Section. However, the commission may, after due notice to the school, require filing of the information contained in Paragraphs (4) through (14) of Subsection C of this Section. In lieu thereof, the owner may file an affidavit attesting to such accreditation or approval as provided herein with the license fee attached thereto.
(b) Additionally, the application shall require from the applicant the following information:
(i) A current balance sheet of the school prepared by a certified public accountant and indicating that all financial records of the school are maintained in accordance with accepted business practices. Information contained in the balance sheet shall be certified as being true and correct by an officer of the corporation.
(ii) The names, addresses, educational, and teaching qualifications and teaching fields of all instructors employed by the school.
(iii) A list of equipment available for instruction in the school.
(iv) The maximum number of students to be enrolled in each course of instruction offered by the school and the ratios of equipment and instructors to students.
(v) The specific fields and courses of instruction which will be offered and the specific purpose of such instruction.
(vi) A copy of all contracts and agreements which will be signed by students attending the school.
(vii) A copy of all current catalogs, bulletins, and published materials which are transmitted to the public or prospective students.
(viii) A copy of all written contracts or written outlines of all oral commitments or agreements made by the applicant with an apparent house owner for student housing, or with the owner of an establishment serving food to students, or with any other person planning to perform services for the students to be enrolled and to whom the students may be referred by the school.
(ix) An affidavit by each owner and solicitor, containing the following information:
(aa) His full name and address and the capacity in which he serves the school.
(bb) The city, parish or county, and state of his permanent residence and places of residence for the past five years.
(cc) The name and address of his employer or employers for the past five years.
(dd) Whether or not he has ever been convicted of a felony or a crime involving fraud or any misdemeanor other than a traffic violation.
(ee) Three persons who may be contacted concerning his good moral character.
(c) Notwithstanding the provisions of this Paragraph, in the case of office and clerical personnel, the owner or chief executive officer may submit an affidavit setting forth the above information concerning all clerical and office personnel, which information shall be based upon the owner's or chief executive officer's investigation and knowledge. Information submitted to the commission pursuant to the provisions of this Subparagraph shall not be open to public inspection.
(2)(a) In the event approval or accreditation is withdrawn from the school, the owner shall immediately notify the Board of Regents of the withdrawal of accreditation or approval and shall file with the commission within ninety days thereafter all of the information required by Subsection C of this Section.
(b) Failure by a school to provide the commission with any of the items of information enumerated in this Subsection in a timely manner as prescribed by law shall be subject to a fine not to exceed five hundred dollars. Each day that any such failure continues shall constitute a separate offense.
E. (1) No proprietary school shall have its license renewed if the school has failed to make any student tuition refunds in the manner provided by state and federal laws and regulations.
(2) Evidence of the school's refund compliance shall be submitted to the commission with payment for the annual renewal of the school's license. If the school is owned by an individual or a partnership, evidence of compliance shall be in the form of a notarized affidavit signed by all owners, or all partners, of the school affirming that all refunds have been made as of the date of application for license renewal. If the school is owned by a corporation, evidence of compliance shall be a corporate resolution stating that all refunds have been made. Such resolution shall be made at a scheduled meeting of the corporation's board of directors and issued in proper form by the corporate secretary.
F. The Board of Regents may conduct on-site visits and require such information as may be necessary to grant a license and monitor institutional compliance with this Section.
Added by Acts 1972, No. 311, § 1. Amended by Acts 1974, No. 397, § 1; Acts 1977, No. 442, § 1, eff. Jan. 1, 1978; Acts 1980, No. 475, § 1, eff. July 1, 1980; Acts 1987, No. 366, § 1, eff. July 1, 1987; Acts 1988, No. 748, § 1; Acts 1988, No. 881, § 1; Acts 1989, No. 798, § 1; Acts 1991, No. 943, § 1, eff. July 24, 1991; Acts 1992, No. 935, § 1, eff. July 1, 1992; Acts 1993, No. 762, § 1, eff. July 1, 1993; Acts 1995, No. 1270, § 1, eff. July 1, 1995; Acts 1997, No. 280, § 1, eff. June 17, 1997; Acts 1998, 1st Ex.Sess., No. 151, § 1, eff. July 1, 1999; Acts 1999, No. 800, § 2, eff. July 1, 1999; Acts 2000, 1st Ex.Sess., No. 63, § 1, eff. April 17, 2000.