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Proposed Changes to Education Law Sections 5001 - 5010 (as of 7/12/06)
Additions are marked in bolded and underlined red [Deletions are marked in brackets] §5001 Licensed private schools [and registered business schools/ computer training facilities]. 1. Schools required to be licensed [or registered]. No private school [or computer training facility] which charges tuition or fees for instruction and which is not exempted hereunder shall be operated by any person or persons, firm, corporation, or private organization for the purpose of teaching or giving instruction in any subject or subjects, unless it is licensed or registered by the department. As used in this article, the following terms shall have the following meanings: a. "Licensed private school" shall mean any entity offering to instruct or teach any subject by any plan or method including written, visual or audio-visual methods. , and shall include any institution licensed or registered as a registered business school or computer training facility on the effective date of the repeal of paragraphs b and c of this subdivision. Following such effective date, there shall be no separate distinction between institutions previously defined as "registered business schools' of "computer training facilities" and other licensed private schools, and any reference in law to a registered business school or computer training facility shall be deemed a reference to a licensed private school. Institutions holding a valid business school registration on such effective date, including computer training facilities, shall have them replaced by the commissioner, at no cost, with licenses valid until the expiration date listed on such previous registration. [b. "Registered business school" shall mean a school in which a curriculum primarily provides a sequence of courses that may include accounting or bookkeeping, marketing, business arithmetic, business law, business English, shorthand, typing, computer business applications/programming, or substantially all said courses, for the purpose of preparing an individual to pursue a, business occupation; provided, however, that a registered business school program may include instruction in English as a second language at a beginning or basic level, provided such instruction shall not constitute more than fifty percent of such program. Such authorization shall apply to all students who commence instruction in a registered business school program prior to July first, nineteen hundred ninety-one. A business school registered under this section shall employ only teachers licensed by the department, whose qualifications are substantially equivalent to those required of teachers of equivalent subjects in public secondary schools. c. "Computer training facility" shall mean any entity primarily engaged in providing training on the use, language, programs, application, networking and technical repair of computers.] 2. Exempt schools. The following schools are exempted from the licensing requirement of this section: a. institutions authorized to confer degrees in this state; b. schools [, other than correspondence schools,] providing kindergarten, nursery, elementary or secondary education, except schools conducted for profit which provide instruction in English as a second language or preparation for high school equivalency examinations to out-of-school youth or adults; c. schools operated by governmental agencies or authorities; d. schools which engage exclusively in training of students with disabilities as defined in section forty-four hundred one of this chapter; e. schools conducted on a not-for-profit basis by firms or organizations for the training of their own employees only, provided that such instruction is offered at no charge to such employees, or by a fraternal society or benevolent order for its members or their immediate relatives only; f. schools which provide instruction in the following subjects only: religion, dancing, music, painting, drawing, sculpture, poetry, dramatic art, languages, reading comprehension, mathematics, recreation and athletics except schools conducted for the purpose of training teachers in these vocational subjects; g. schools in which the course of instruction is licensed, registered or approved under any other section of this chapter or by any other department or agency of the state; h. schools which provide instruction designed solely for giving flight training and/or related ground school instruction. i. schools in which instruction designed solely to prepare applicants for admission to professional licensing examinations administered by the department pursuant to title eight of this chapter, and applicants for examination for admission to the practice of law; j. schools which offer continuing education courses exclusively for individuals licensed by the department pursuant to title eight of this chapter and for individuals admitted to the practice of law; k. schools which provide instruction given exclusively to employees of a person or organization which has contracted with another person or organization to provide such instruction at no cost to the employees; l. conferences, trade shows, workshops, seminars, institutes or courses of study offered and sponsored either jointly or individually by recognized trade, business or professional organizations for the benefit of their membership; [or those offered to the general public by individuals, firms or organizations which neither conduct such activities for a duration of more than five consecutive days nor more frequently than twice in any one calendar year;] m. schools that limit their total conferences, trade shows, workshops, seminars, institutes or course offerings to no more than twice in one calendar year and each of those offerings is for no more than five days; n. [m.] schools which provide instruction exclusively to persons employed full-time or part-time in the field in which instruction is being offered, where the instruction is provided to meet continuing education standards required for professional licensure as defined by law in this state; [n. instruction offered at a total contract price of less than three hundred dollars; provided that the total contract for all courses to any enrolled student is less than three hundred dollars in any one calendar year. (n.b., expires and is repealed effective September 1, 2000).] o. schools in candidacy status pursuant to subparagraph (iii) of paragraph b of subdivision 4 of this section. 2-a. schools exempted pursuant to subdivision two of this section may waive such exemption and apply for a license or registration; provided, however, that the review of such applications shall be left to the discretion of the commissioner. 2-b. programs offered by licensed private schools to employees of a person or organization which has contracted with another person or organization to provide such instruction at no cost to the employees [or registered business schools to private businesses where there is no tuition liability to the employees] shall be exempt from the requirements of this article, provided that the following requirements are met: a. only employees of the employer [private business] for which the program is being offered may enroll in classes that make up the program. b. certificates or diplomas awarded to students in the program may not reference in any way the department. c. prior to the commencement of the program, such schools shall submit to the department a disclosure form, prescribed by the commissioner, copies of which shall be provided to all students in such exempt program, which shall include but not be limited to the following information: (i) a description of the location and time period in which the program will be offered; (ii) a statement that the students enrolled in the program shall not be subject to any tuition liability for the program, even if such students do not complete the program; (iii) a statement that the program being provided to the employer [private business] has not been approved by the department and is not under the department's jurisdiction and that the students in the program have been advised of the fact; and (iv) the signatures of the school director or owner of the school and the representative of the employer [private business] for which the program is being offered certifying the accuracy of the statements on the form. d. any additional student openings in a program deemed exempt by the department may be made available to students not affiliated with the employer [private business] on the condition that such students execute a disclosure form as prescribed in paragraph c of this subdivision. such admitted students shall only constitute no more than [up to] ten percent of the exempt program's total capacity. 3. Repealed. 4. Application, renewal application and application fees. a. Application and renewal application for a license as a private school [or registration as a business school] required by the commissioner shall be filed on forms prescribed and provided by the department. Except as provided in subparagraph (iii) of paragraph e of this subdivision, each renewal application for [a private business school registered pursuant to this section or for] a private school licensed pursuant to this section shall include an audited financial statement audited according to generally accepted auditing standards by an independent certified public accountant or an independent public accountant and statistical reports certified by the owner or operator of the school, as required by the commissioner; provided, however, that the commissioner shall accept a copy of a current financial statement previously filed by a school with any other governmental agency in compliance with the provisions of any federal or state laws, or rules or regulations if such statement contains all of the information required under this subdivision and conforms to this subdivision's requirements of auditing, review and certification. Any required audit of the financial statement shall be a condition of licensure [or registration] and shall be paid for by the school, and the results of the audit shall be forwarded to the commissioner. Applications not accompanied by the audits and reports required pursuant to this subdivision shall not be considered for approval by the commissioner. Initial applications shall be accompanied by financial reports as required by the commissioner. [The commissioner shall act on an initial application for a license or registration within one hundred twenty days of receipt of a complete application.] The applicant shall receive a written approval or denial together with the reasons for a denial of such application. b. (i) An initial license [or registration] issued pursuant to the provisions of this article shall be valid for a period of two years. A renewal of license [or registration] issued pursuant to the provisions of this article shall be valid for a period of four years. [All license and registration fees for a renewal shall be double the amounts listed in paragraph g of this subdivision.] (ii) E[e]ach school shall display [, near the entrance to the school and under glass,] the license [or registration] which has been issued to it. Such authorization shall be displayed only during the period of its validity. (iii) A school which has applied for a private school license may request candidacy status for one time only. Candidacy status will not be issued to schools offering programs to train students to pass licensure examinations such as appearance enhancement tests, achieve nurse aide or nurse assistant certification, or any other occupation determined by the commissioner to require full licensure status. Candidacy status allows a school to operate unlicensed for a maximum, non-renewable period of eighteen months during the licensure application process under the following conditions: The prospective school submits a candidate school application fee, separate from the school application fee, of $5,000 which shall accrue to the credit of the proprietary vocational school supervision account; The school may in no way represent that it is licensed or that its programs are approved through the New York State Education Department; To every prospective student, the school must disseminate a statement, provided by the department, that the facilities, instructors, and programs being provided have not been approved and are not under the department's jurisdiction during the candidacy period. Additionally, the statement shall indicate that students attending candidate schools will have no recourse through the department’s student complaint process nor have any restitution available from the tuition reimbursement account. Students must sign an attestation to the receipt of this statement. The school must retain the signed attestation and provide the student with a copy of that signed statement; The school must demonstrate financial viability through means appropriate to the commissioner. These may include an audited financial statement based on the most recently completed fiscal year; securing and maintaining a performance bond, payable to the Commissioner of Education, in an appropriate amount to eliminate any liability to the tuition reimbursement account should the school cease operation; limiting the collection of tuition funds until each student completes the program of study; or other means acceptable to the commissioner; and Any breach of the above conditions will result in the disapproval of the school ’s licensure application and the forfeiture of candidate status. Continued operation after this disapproval will subject the school to the disciplinary action prescribe under section 5003(6)(b) of this part. The Commissioner of Education will review the candidate package at twelve months and determine if candidacy status will extend for the full eighteen months, whether the candidate school may continue to enroll for programs extending beyond the eighteen months, or if it is to be disapproved for inability to meet required standards. (n.b., sunsets three years after effective date of amendment) c. An application for renewal of any license [or registration] shall be submitted at least one hundred twenty days prior to the expiration date of the current authorization to operate accompanied by the nonrefundable application fee and such certified statistical reports and annual financial statements required pursuant to this subdivision. d. When complete and timely application has been made for renewal of any license [or registration], the school shall receive a written approval or denial, together with the reasons for denial of renewal, from the commissioner no less than thirty days prior to the date such license or registration expires. e. Financial statements and statistical reports. (i) Licensed private schools and candidate schools [registered business schools] shall submit such certified statistical reports and annual financial statements as required by the commissioner. The commissioner may require audited statistical reports upon a determination that a school has provided false or inaccurate certified statistical reports. The financial statements shall be based on the fiscal year of the school and shall also include an itemized account of tuition refunds due and owing to past or presently enrolled students. Statistical reports shall include, but not be limited to, enrollment, completion and placement data. The commissioner shall use such financial statements and statistical reports submitted for the purposes of licensure [and registration] of schools, establishing fees or assessments pursuant to this article and determining standards pursuant to paragraph b of subdivision five of section five thousand two of this article. The attorney general, the comptroller and the president of the higher education services corporation shall have access to this information when it is necessary to perform their duties as required by state law. (ii) Schools [Any school which received in excess of two hundred fifty thousand dollars in gross tuition in a school fiscal year] shall be required to submit an annual audited financial statement prepared according to generally accepted accounting principles to the commissioner for each [that] fiscal year. [In addition, any school which has a gross tuition of two hundred fifty thousand dollars or less in a school fiscal year but whose combined state and federal student financial aid in such year exceeds one hundred thousand dollars shall also submit an annual audited financial statement to the commissioner for that fiscal year.] (iii) Notwithstanding the provisions of subparagraph (ii) of this paragraph, for fiscal years relating to the income of the school during its initial two year licensure period, any schools having an annual gross tuition income of $250,000 or less may submit a reviewed financial statement rather than an audited financial statement. Additionally, schools licensed prior to the effective date of this amendment, [Schools] whose gross tuition is two hundred fifty thousand dollars or less in a school fiscal year and which receive less than one hundred thousand dollars in state and federal student financial aid in a school fiscal year shall be permitted to continue to file with the commissioner an unaudited financial statement in a format prescribed by the commissioner, provided, however, that any such school begins filing audited financial statements as of the school’s fiscal year ending three years or more after the effective date of this amendment. [with gross tuition in excess of fifty thousand dollars shall have filed at least one audited financial statement after the first year of its operation. The statement shall be signed by the president or chief executive officer and the chief fiscal officer of the school who shall certify that the statements are true and accurate.] Upon a determination by the commissioner that a school has submitted false or inaccurate statements or that a significant, unsubstantiated decline in gross tuition has occurred, the commissioner may require any such school to file an audited financial statement pursuant to this paragraph. f. Alternate licensing provision. The commissioner shall issue regulations which define alternate licensing requirements for the following: (1) correspondence schools in which all approved programs and courses are under three hundred hours; (2) schools which are eligible for exemption under this section but which elect to be licensed; (3) non-profit schools exempt from taxation under section 501(c)(3) of the internal revenue code whose programs are funded entirely through donations from individuals or philanthropic organizations, or endowments, and interest accrued thereon; and (4) language schools conducted for-profit which provide instruction in English as a second language and which accept no public funds. g. Application fee. Every applicant and renewal applicant shall pay to the department a nonrefundable, nontransferable application fee. The application fee for new schools or for additional licensed locations of currently operating schools, shall be $5,000, of which $3,000 shall accrue to the credit of the proprietary vocational school supervision account and $2,000 shall accrue to the tuition reimbursement account. For additional licensed locations of currently operating schools with same ownership, the application fee shall be $2,500, which shall accrue to the credit of the proprietary vocational school supervision account. For renewal applications, the fee shall be based on gross annual tuition income as determined by the annual financial statements required in paragraph a of this subdivision for the most recent school fiscal year, according to the following schedule:
GROSS ANNUAL TUITION INCOME FEE Such renewal fees shall accrue to the credit of the proprietary vocational school supervision account. If the evaluation of a particular course or facility requires the services of an expert not employed by the department, the department shall retain such expert and the school shall reimburse the department for the reasonable cost of such services. 5. Required disclosure for licensure. a. The commissioner shall require that each applicant for a license for the operation of a private [vocational or business] school disclose the following information: (1) Whether the applicant, or any corporation, partnership, association or organization or person holding an ownership or control interest in such school, or any employee responsible in a supervisory capacity for the administration of student funds or governmental funds, has been convicted of a crime defined in this article, or any other crime involving the operation of any educational or training program, or, in connection with the operation of any such program, a crime involving the unlawful acquisition, use, payment or expenditure of educational or training program funds; and (2) Whether the applicant, or any corporation, partnership, association or organization or person holding an ownership or control interest in such school, or any employee responsible in a supervisory capacity for the administration of student funds or governmental funds has been convicted: (A) in this state of any of the following felonies defined in the penal law: bribery involving public servants; commercial bribery; perjury in the second degree; rewarding official misconduct; larceny, in connection with the provision of services or involving the theft of governmental funds; offering a false instrument for filing, falsifying business records; tampering with public records; criminal usury; scheme to defraud; or defrauding the government; or (B) in any other jurisdiction of an offense which is substantially similar to any of the felonies defined in clause (A) of this subparagraph and for which a sentence to a term of imprisonment in excess of one year was authorized and is authorized in this state regardless of whether such sentence was imposed; and (3) Whether the applicant, or any corporation, partnership, association or organization or person holding an ownership or control interest in such school, or any employee responsible in a supervisory capacity for the administration of student funds or governmental funds, has been finally determined in any administrative or civil proceeding to have committed a violation of any provision of this article or any rules and regulations promulgated pursuant thereto, or any related order or determination of the commissioner, or of any similar statute, rule, regulation, order or determination of another jurisdiction pertaining to the licensure and operation of any educational or training program; and (4) Whether any school owned or operated by the applicant closed or ceased operation and, if so, whether at the time of the closing the applicant was subject to a pending disciplinary action, disallowance, fine or other penalty and whether it owed refunds to any government agency or students. b. No application for any license pursuant to this article shall be denied by reason of disclosure pursuant to this subdivision of the applicant, or any corporation, partnership, association or organization or person holding an ownership or control interest in such school, or any employee responsible in a supervisory capacity for the administration of student funds or governmental funds unless the commissioner makes a written determination that there is a direct relationship between one or more of such previous offenses and the license sought, or that issuance of the license would create an unreasonable risk to property or to the safety, education or welfare of specific individuals or the general public. In making such determination, the commissioner shall be guided by the factors set forth in section seven hundred fifty-three of the correction law. For purposes of this subdivision, "ownership or control interest" means: with respect to a school that is organized as or owned by a corporation, a position as an officer or director of such corporation; or, with respect to a school that is organized as or owned by a partnership, a position as a partner; or any other interest totaling ten percent or more, whether direct or indirect, in the total equity or assets of such school. c. The commissioner may deny, suspend, revoke or decline to renew any license (1) if the significance of the convictions or administrative violations warrant such action or (2) if the commissioner determines that a school did not make any disclosure required by this subdivision. (3) if the commissioner determines that a school's financial condition may result in the interruption or cessation of instruction or jeopardize student tuition funds. 6. If, during the [two year] period for which a license [or registration] is granted, the commissioner determines that a school's financial condition may result in the interruption or cessation of instruction or jeopardize student tuition funds, the commissioner may, upon notice to the school, place the school on probation for a period of no more than (thirty) sixty days, during which time the school and the department must make effort to resolve the problems at the school. A report from the school must be submitted within thirty days of the determination for review by the Commissioner of Education to determine financial viability. The Commissioner of Education may suspend, revoke, or rescind the license if the school’s financial condition remains a threat to the students’ education or tuition funds. Alternatives for the school to demonstrate a fiscally sound operation may include securing and maintaining a performance bond, payable to the Commissioner of Education, in an appropriate amount to eliminate any liability to the tuition reimbursement account should the school cease operation, limiting the collection of tuition funds until each student completes the program of study, or other means acceptable to the commissioner. If no resolution can be attained, a hearing, pursuant to subdivisions two and three of section five thousand three of this article will be scheduled. Such probation may include additional monitoring, inspections, limitations on enrollment, teaching out some or all of a school's present students or temporary cessation of instruction. 7. No license [or registration] granted under this section shall be transferable or assignable without the approval of the commissioner. Upon [Any] transfer or assignment of any interest totaling twenty-five percent or more, whether direct or indirect, in the total equity or assets of a school, such school shall be deemed a [transfer of such school's license or registration. The commissioner shall approve or deny a transfer or assignment based on the requirements set forth in subdivisions three and four of this section. Such approval or denial, together with the reasons for denial, shall be transmitted in writing within ninety days of the receipt of the complete application by the commissioner. Upon a showing of good cause as to why the applicant could not obtain the commissioner's approval prior to a transfer or assignment, the commissioner shall temporarily approve the continued operation transfer or assignment for a period not to exceed forty-five days and for such additional periods as the commissioner may deem appropriate.] new school required to submit a new school application and obtain a new license pursuant to this article. Provided, however that upon such a substantial change in interest, the previous school license shall remain in effect until the new license is issued or denied or the previous license expires or is revoked, whichever occurs first. 8. No licensed [or registered] school shall discontinue operation or surrender its license [or registration] unless thirty days written notice of its intention to do so and a plan for maintenance of safe keeping of the records of the school is provided to the commissioner. However, upon good cause shown, the commissioner may waive the thirty days notice requirement. 9. Annual supervision fund and tuition reimbursement account [fund] assessment. a. The commissioner shall annually assess each school a total percentage of that school's gross tuition pursuant to subdivision three of section five thousand two of this article, as determined by the [annual financial statement or] annual audited financial statement required by this article. This assessment shall be based upon each school's gross tuition from the previous year, and shall be payable to the commissioner in equal quarterly installments which shall be due on June first, September first, December first and March first. b. (i) [Beginning April first, nineteen hundred ninety-one, s] Such annualized assessment shall be one percent for schools which have paid less than 16 quarters of assessments but such annual assessment shall not fall below $500. (ii) Such annualized assessment shall be eight-tenths of one percent for schools which have paid 16 or more quarters of assessments but such annual assessment shall not fall below $500. [Beginning July first, nineteen hundred ninety-four, such annualized assessment shall be nine-tenths of one percent. (iii) Beginning April first, nineteen hundred ninety-five, and in each succeeding year, such annualized assessment shall be eight-tenths of one percent.] (i) of the total assessment provided for herein, five-tenths of one percent shall accrue to the credit of the tuition reimbursement fund pursuant to section five thousand seven of this article for those schools which have paid less than 16 quarters of assessments,. Of the total assessment provided for schools which have paid 16 or more quarters of assessments, three-tenths of one percent shall accrue to the credit of the tuition reimbursement account [fund] pursuant to section five thousand seven of this article. For schools paying the minimum $500 annual assessment, none shall accrue to the tuition reimbursement account. (ii) The balance of the total assessment provided for herein shall be dedicated to fund the department's supervision and regulation of licensed private schools [and registered business schools] pursuant to an annual appropriation and an annual plan of expenditure prepared by the commissioner and approved by the director of the budget. [Following the close of each fiscal year, the commissioner, in consultation with the director of the budget, shall determine if the balance in the proprietary vocational school supervision fund for such fiscal year exceeded the amount required for the support of the department's supervisory activities taking into account projected revenues and expenditures for the subsequent fiscal year. To the extent that a surplus is identified, the commissioner, with the approval of the director of the budget, shall direct the transfer of such surplus to the tuition reimbursement fund.] d. Payments made within thirty days following the due date shall be subject to interest at one percent "above the prevailing prime rate. Thereafter, late payments may result in suspension of licensure by the commissioner. Payments required by this subdivision shall be considered a condition of licensure or registration. § 5002. Standards for licensed private schools [and registered business schools]. Any school licensed [or registered] pursuant to section five thousand one of this article shall be organized and conducted only as a school and shall be subject to the jurisdiction of the department exclusively, or in conjunction with such other state agency or department or district attorney upon which jurisdiction has also been conferred by law. Such schools shall be subject to and comply with the provisions of this section. 1. Standards. a. No program of such schools shall be conducted in a factory or commercial establishment, except where the use of facilities or equipment of such factory or commercial establishment is permitted for necessary or desirable educational purposes and objectives. b. For every such school, the commissioner shall set forth in regulation standards governing all of the following: (1) criteria for admission, which shall provide that students at least possess a high school diploma or its equivalent or demonstrate the ability to benefit from the instruction, except that in the case of students who do not possess a high school diploma or its equivalent, certification of the students' ability to benefit from instruction shall be provided to the commissioner as provided in paragraph c of this subdivision; (2) the standards and the methods of instruction; (3) the equipment available for instruction with the maximum enrollment that such equipment and physical plant will accommodate; (4) the qualifications and experience of teaching and management personnel; (5) the form and content of the student enrollment agreement or contract, provided that such agreement or contract shall be written in the same language as that principally used in the sales presentation; (6) the methods of collecting tuition for programs of less than 600 hours which shall include the provision that any school, receiving student tuition funds from private loans which are not federally guaranteed, must enter into a formal program participation agreement with the lender. Such agreement must, at minimum, affirm that the school shall receive no more than 50 percent of tuition costs from those private loans that are not federally guaranteed until such time as the student has graduated or formally withdrawn from the school. At that time, the remainder of the loan, adjusted for any refunds in accordance with the approved refund policy, may be received by the school. This requirement shall be required on or after the effective date of this amendment and shall not affect any individual contracts or agreements effective prior to that date. For programs of 600 hours or more, 50 percent of tuition costs may be collected during the first half of the program, and the remaining 50 percent of tuition costs may be collected during the second half of the program; (7) eligibility criteria for programs that will require licensure; (8) the sufficiency and suitability of the resources available for the support of such school; and (9) counseling provided to students. c. Notwithstanding any other provisions of this article to the contrary, the commissioner shall define alternative educational and curriculum standards for any program of less than forty hours designed exclusively for non-occupational, personal enrichment purposes. d. Admission of students under the ability to benefit provision. Certification. Each school admitting students who do not possess at least a high school diploma or its equivalent shall certify to the satisfaction of the commissioner that such prospective students have been administered and passed an examination which has been approved by the commissioner to determine their ability to benefit from the chosen curriculum prior to admission to the curriculum or course of study. Such examination shall, whenever possible, be a nationally recognized test appropriate for the course of instruction which has been approved by the commissioner. The examination results of each such student who is admitted shall be made available to the commissioner at a time prescribed by the commissioner and, together with the student's original answer sheet, shall be maintained by the school in the student's permanent record. For any student failing to achieve the necessary score on such examination for enrollment, the school shall be required to provide such student with a listing of appropriate counseling and educational opportunities available to the student at no cost, as determined by the commissioner. Where appropriate, the commissioner may accept such other entrance requirement documentation such as prerequisite coursework, professional or vendor certifications, personal interviews, and/or attestations of equivalent knowledge in lieu of the examination requirement. Counseling. Each school, offering curricula which admit[ting] students who do not possess a high school diploma or its equivalent, shall develop a plan to be approved by the commissioner for the counseling of such students on an individual basis on matters including but not limited to the student's ability to progress in the curriculum, the student's financial aid rights and responsibilities, the availability of programs to earn a high school equivalency diploma, including programs provided at no cost to the student, and the potential of the training to prepare the student for available employment opportunities within the region. Compliance. (A) The commissioner shall, monitor compliance with this paragraph and verify the examination and counseling process and student examination scores. Such procedures may include but not be limited to an annual, statistically significant, random sampling of the examinations taken by prospective students of each school administering such examinations. [(B) Such procedures shall provide that the examinations of each school be inspected on site at least once annually.] (B) [(C)] In the event that the commissioner determines that the school is out of compliance with the examination process and counseling, the commissioner shall require that examinations and counseling for students admitted under the ability, to benefit provision and the counseling required by subparagraph two of this paragraph be conducted off the premises of the school by an entity approved by the commissioner for such period of time as the commissioner deems appropriate, the cost of which shall be incurred by the school. 2. Inspections. Every school licensed pursuant to this article shall maintain adequate and accurate records for a period of not less than seven [six] years at its principal place of business within this state. Such records shall be maintained in a manner and form prescribed by the commissioner and shall be made available to the department and the higher education services corporation upon request. In addition to other requirements in this article, the information to be made a part of the record shall include, but not be limited to: (1) names and addresses of each enrolled student; (2) the course of study offered by the institution; (3) the name and address of its faculty, together with a record of the educational qualifications of each; (4) the graduation date of each student; and (5) for each student who fails to complete his or her program, the student's last date of attendance and, if applicable, the amount of any refund paid to, or on behalf of, the student and the date the refund was made. c. The commissioner shall conduct periodic unscheduled inspections of licensed private schools [and registered business schools] to monitor compliance with the provisions of this article or the rules or regulations promulgated thereunder or any final order or decision of the commissioner made pursuant to this article. The department shall conduct an inspection of each school at least once every licensure period. [three years. The department shall annually inspect schools: (1) having a high percentage of students admitted under ability to benefit criteria as determined by the commissioner; (2) having a high student loan default rate as determined by the commissioner in a manner consistent with federal standards; or (3) which are the subject of a high volume of complaints .by students or other parties. ] All schools shall provide upon request of the department, any and all records necessary to review compliance with the provisions of this article. d. Student permanent records, as defined in the regulations of the commissioner, shall be maintained for a period of twenty years. 3. Tuition liability. a. The tuition charge for programs approved for participation in student financial aid general award programs pursuant to articles thirteen and fourteen of this chapter shall be apportioned on the basis of terms, quarters or semesters. For the purposes of this section, the terms "term", "quarter" and "semester" shall be defined in regulations by the commissioner. b. The tuition refund policy for the first term or quarter of any program at schools licensed or registered pursuant to section five thousand one of this article shalI be as follows: (1) For programs which are divided into quarters of up to fourteen weeks, the school shall evenly divide the total tuition charges among the number of quarters. After instruction is begun in a school, if a student withdraws or is discontinued, the school may retain no more than: (i) zero percent of the quarter's tuition if the termination is during the first week of instruction; or (ii) twenty-five percent of the quarter's tuition if the termination is during the second week of instruction; or (iii) fifty percent of the quarter's tuition if the termination -is during the third week of instruction; or (iv) seventy-five percent of the quarter's tuition if the termination is during the fourth week of instruction; or (v) one hundred percent of the quarter's tuition if the termination occurs after the fourth week of instruction. (2) For programs organized by terms of fifteen, sixteen, seventeen or eighteen weeks apiece, the school shall evenly divide the total tuition charges among the number of terms. After instruction is begun in a school, if a student withdraws or is discontinued, the school may retain no more than: (i) zero percent of the term's tuition if the termination is during the first week of instruction; or (ii) twenty percent of the term's tuition if the termination is during the second week of instruction; or (iii) thirty-five percent of the term's tuition if the termination is during the third week of instruction; or (iv) fifty percent of the term's tuition if the termination is during the fourth week of instruction; or (v) seventy percent of the term's tuition if the termination is during the fifth week of instruction; or (vi) one hundred percent of the term's tuition if the termination occurs after the completion of the fifth week of instruction. c. (1) The tuition refund policy for the second term or quarter of any program at schools licensed or registered pursuant to section five thousand one of this article shall be as follows: (A) For programs which are divided into quarters of up to fourteen weeks, the school shall evenly divide the total tuition charges among the number of quarters. After instruction is begun in a school, if a student withdraws or is discontinued, the school may retain no more than: (i) twenty-five percent of the quarter's tuition if the termination is during the first week of instruction; or (ii) fifty percent of the quarter's tuition if the termination is during the second week of instruction; or (iii) seventy-five percent of the quarter's tuition if the termination is during the third week of instruction; or : (iv) one hundred percent of the quarter s tuition if the termination occurs after the third week of instruction. (B) For programs organized by terms of fifteen, sixteen, seventeen or eighteen weeks apiece, the school shall evenly divide the total tuition charges among the number of terms. After instruction is begun in a school, if a student withdraws or is discontinued, the school may retain no more than: (i) twenty percent of the term's tuition if the termination is during the first week of instruction; or (ii) thirty-five percent of the term's tuition if the termination is during the second week of instruction; or (iii) fifty percent of the term's tuition if the termination is during the third week of instruction; or (iv) seventy percent of the term's tuition if the termination is during the fourth week of instruction; or (v) one hundred percent of the term's tuition if the termination occurs after the completion of the fourth week of instruction. d. The tuition refund policy for the third and any subsequent term or quarter of any program licensed or registered pursuant to section five thousand one of this article shall be the policy set forth in subparagraph one of paragraph c of this subdivision. e. No program shall have a term in excess of eighteen weeks. f. The amount of the refund shall be calculated based on the last day of student attendance. g. (1) Any refund due to a student shall be paid by the school within forty-five days of the date on which the student withdraws from the program. For the purposes of this article, such date shall be the earliest of (i) the date on which the student gives written notice to the school or (ii) the date on which the student is deemed to have withdrawn pursuant to subparagraph two of this paragraph. (2) If a student has failed to attend classes for a period of thirty calendar days, the school shall send by regular mail a notice to the student that the student shall be deemed to have withdrawn from the program if the student does not notify the school to the contrary within twelve days from the date on which the letter is sent. If the student fails to respond within such twelve-day period, the student shall be deemed to have withdrawn and the school shall notify the higher education services corporation that the student has withdrawn and the date of the withdrawal. h. Schools will submit for approval by the Commissioner the school catalog with a weekly tuition liability chart for each program, indicating the amount of refund due the student in the event of withdrawal. Enrollment agreements will refer the student to the school catalog for this chart. i. Upon payment of a refund to a lender, the school shall forthwith send a notice to a person designated by the president of the higher education services corporation upon a form approved by the president that such refund was made. j. If the higher education services corporation fails to receive the notice required by paragraph h of this subdivision, it shall forthwith notify the student of his or her right to a refund and the commissioner of such failure. Upon receipt of such notification, the commissioner shall take appropriate action against the school. 4. Curriculum approval. a. An application and fee shall be made for the initial approval of a curriculum or course and shall include such information as the commissioner may require by regulation. Approval shall be valid for a period not to exceed four years. The application fee for any curriculum of 100 clock hours or more shall be $250. The application fee for any course of less than 100 clock hours shall be $100. Such application fees shall accrue to the credit of the proprietary vocational school supervision account. b. In approving curriculum, the commissioner shall take into consideration the following: (1) that the entrance requirements demonstrate that students possess the skills, competencies and prerequisite knowledge needed to progress in the curriculum; (2) that the content will enable the student to develop those skills and competencies required for employment in the occupational area for which the curriculum was developed; (3) that the school will utilize appropriate instructional methods; and (4) that the instructional equipment used within the curriculum is comparable to the equipment currently used by business or industry in the occupational area for which the curriculum was developed. that a curriculum may include instruction in English as a second language at a beginning or basic level provided such instruction shall not constitute more than fifty percent of such program. c. (1) If the evaluation of a particular course or facility requires the services of an expert not employed by the department, the department shall retain such expert at the school’s additional expense beyond the standard application fees listed in subpart a [and the school shall reimburse the department for the reasonable cost of such services]. (2) If, in the interest of expediting the approvals, a school requests the department to employ an outside consultant, the school shall pay [reimburse the department for] the [reasonable] cost of such services beyond the standard application fees listed in subpart a. d. The commissioner shall act on applications for approval of a course or curriculum within one hundred twenty days of receipt of a complete application and, in the case of a denial, shall set forth in writing the reasons for such denial. e. notwithstanding paragraphs b, c and d of this subdivision, curriculum certified by a nationally recognized vendor as defined in commissioner's regulations shall be recognized by the department in lieu of an expert evaluation when such curriculum is adopted by a school in the original format provided by the vendor as long as the proposed curriculum is a stand alone program and not part of a larger comprehensive course. f. Notwithstanding any other provision of the law, a [not-for-profit registered business] school, [that is eligible for participation in the tuition assistance program and] which has national accreditation, may, for the purpose of calculation of federal financial aid amounts only, measure students' academic progress in an approved curriculum in non-degree granting credit hours, based upon a national accrediting agency's conversion and approval of clock hours to non-degree credit hours. For the purposes of this paragraph, "national accreditation" shall mean accreditation by a national accrediting agency as defined in the commissioner's regulations. 5. Application for reapproval. a. An application and fee shall be made for reapproval of a curriculum or course. Such application shall be considered timely if submitted at least one hundred twenty days prior to the expiration of the current approval. The application fee for any curriculum of 100 clock hours or more shall be $250. The application fee for any course of less than 100 clock hours shall be $100. No fee shall be assessed for the submission of a reapproval application without change. Such application fees shall accrue to the credit of the proprietary vocational school supervision account. b. Curriculum reapproval standards. (1) The commissioner shall prescribe by regulation, standards for reapproval after the first year of licensure, of any curriculum or course based upon factors including but not limited to the following, as appropriate: (i) for each curriculum or course, the percentage of students who have dropped out; (ii) the acquisition of a specified minimum level of skills by the students; and (iii) for each curriculum or course, the percentage of students placed in occupations related to the instruction, where applicable. (2) Such standards shall be consistent with those applied to all nondegree vocational education programs. c. Reapproval contingency. Reapproval of a curriculum or course shall be contingent upon a demonstration by the applicant that the curriculum or course has met the curriculum reapproval standards set forth in this subdivision. Except as otherwise provided in paragraph d of this subdivision, no such curriculum or course or substantially similar curriculum or course may be given without reapproval by the commissioner. d. When timely and complete application is made for the reapproval of a curriculum or course, and no written denial is made thirty days prior to the date of expiration of the existing approval, the curriculum or course shall be deemed to be approved for the period of the curriculum. If the application is denied, the commissioner shall set forth in writing the reasons for such denial. e. The commissioner may provide in regulations for reapproval procedures, consistent with this subdivision, for applications submitted less than one hundred twenty days from the expiration date. f. The commissioner shall act upon enrollment agreements and catalogs within ninety days of receipt, and, in the case of denial, shall set forth in writing the reasons for such denial. If the commissioner fails to act within ninety days, a catalog shall be deemed approved for one year and an enrollment agreement shall be deemed approved until the commissioner acts upon it. 6. a. Teachers and directors. No person shall be employed by a private school as a director or teacher who is not licensed in such capacity by the department pursuant to regulations of the commissioner, which shall take into consideration such factors as moral character, educational qualifications and practical experience. The application shall include a statement, signed by the president or chief executive officer of the school, certifying that to the best of, his or her knowledge, the applicant is able to meet the educational qualifications and practical experience set forth in the commissioner's regulations. Such application shall be considered timely if mailed to the commissioner and postmarked four days prior to employment at the school and must be completed within twenty days thereafter; provided, however, that the commissioner may, for good cause shown, extend the time within which to complete the application. When a complete application is made, the commissioner shall act upon such application within thirty days. If no written denial is made within the thirty days, the application shall be deemed to be approved until the commissioner acts upon it or until the end of the term or semester, whichever occurs first. If a written denial is made after the thirty day period, the commissioner may allow the applicant to teach at the school for the remainder of the term or semester if the commissioner determines that the removal of the teacher would not be in the best educational interest of the students. This subdivision shall not apply to directors or teachers employed on or before July first, nineteen hundred seventy-two. Teachers' licenses issued on or after *** [January first, nineteen hundred eighty-seven] shall be valid at all [registered business] schools for the courses, curricula, or occupations indicated on the license. Teachers holding valid private school teacher licenses valid at only one school location will have them replaced, at no cost, with licenses valid at any licensed school in the same subject(s) and with the same expiration date as was listed on the previous teaching license. b. A school director shall have access to all student and school records which shall be maintained in accordance with this article and the regulations of the commissioner and shall make such records available to the commissioner or the commissioner's designee upon request during an on site school inspection. c. notwithstanding paragraph a of this subdivision, a teacher who has been certified as an instructor by a nationally recognized vendor as defined in commissioner's regulations may be deemed qualified as an instructor by the department, provided such teacher shall only provide instruction in the course or courses for which he or she holds vendor's certification. A teacher authorized by this paragraph will be subject to all licensing fees required by the department for licensed teachers. 7. Advertising. a. The commissioner is authorized to commence a disciplinary proceeding pursuant to this article for false, misleading, deceptive or fraudulent advertising pursuant to regulations promulgated by the commissioner which shall be consistent with article twenty-two-A of the general business law. The department shall issue guidelines as to appropriate advertising content. In developing such guidelines, the department shall consider advertising for similar programs offered by various educational institutions. In a disciplinary action or other proceeding, such guidelines shall not be presumptive evidence that particular advertising is appropriate. b. beginning on january first, two thousand, all schools shall include in their advertising, promotional material, or letterhead the statement "licensed by the state of new york" [or "registered by the state of new york", as appropriate,] and an accompanying symbol to indicate such status, issued by the commissioner pursuant to section five thousand nine of this article. 8. The higher education services corporation shall adopt rules and regulations to effectuate the cessation of collection activities by lenders or by the corporation in cases in which a licensed [private vocational school or a registered business] school at which the student enrolled has closed or ceased its teaching activities during the academic period for which the loan was made or guaranteed. §5003 Disciplinary actions, hearings and penalties. 1. Disciplinary action. a. The commissioner for good cause, after affording a school an opportunity for a hearing, may take disciplinary action as hereinafter provided against any school authorized to operate under this article. b. Good cause shall include, but not be limited to, any of the following: (1) fraudulent statements or representations to the department, the public or any student in connection with any activity of the school; (2) violation of any provision of this article or regulation of the commissioner; (3) conviction or a plea of no contest on the part of any owner, operator, director or teacher: (A) of any of the following felonies defined in the penal law: bribery involving public servants; commercial bribery; perjury in the second degree; rewarding official misconduct; larceny, in connection with the provision of services or involving the theft of governmental funds; offering a, false instrument for filing, falsifying business records; tampering with public records; criminal usury; scheme to defraud; or defrauding the government; or (B) in any other jurisdiction of an offense which is substantially similar to any of the felonies defined in clause (A) of this subparagraph and for which a sentence to a term of imprisonment in excess of one year was authorized and is authorized in this state regardless of whether such sentence was imposed; or (4) incompetence of any owner or operator to operate a school. c. (1) Any person who believes he or she has been aggrieved by a violation of this section, with the exception of those issues dealing with candidate schools, shall have the right to file a written complaint within: (A) two years of the alleged violation; or (B) one year of receiving notification from the higher education services corporation or any other guarantee agency that the student has defaulted on a student loan payment; provided, however, that no complaint may be filed after three years from the date of the alleged violation. The commissioner shall maintain a written record of each complaint that is made. The commissioner shall also send to the complainant a form acknowledging the complaint and requesting further information if necessary and shall advise the director of the school that a complaint has been made and, where appropriate the nature of the complaint. (2) The commissioner shall within thirty [twenty] days of receipt of such written complaint commence an investigation of the alleged violation and shall within one-hundred twenty [ninety] days of the receipt of such written complaint, issue a written finding. The commissioner shall furnish such findings to the person who filed the complaint and to the chief operating officer of the school cited in the complaint. If the commissioner finds that there has been a violation of this section, the commissioner shall take appropriate action. (3) The commissioner may initiate an investigation without a complaint. (4) Notwithstanding the provisions of subparagraph (1) of this paragraph, students at candidate schools shall have the right to file a written complaint within two years that the required disclosure material was not provided. Upon a finding that there has been a violation of the issuance of the disclosure material required by the candidate school, the candidate school shall provide a refund of all monies and fees received from or on behalf of the student. Additional appropriate disciplinary action will be taken as specified in subparagraph (iii) of paragraph (b) of subsection (4) of Section 5001 of this Part. [d. during the initial two year licensing period, before the commissioner may bring enforcement proceedings against a licensed entity, the following shall be taken into consideration: (1) whether such entity has demonstrated that the regulations promulgated under this chapter are unduly burdensome given the nature of the instruction provided by such entity; (2) whether such entity has identified potential areas of noncompliance with this chapter and any such regulation within sixty days of the licensing or registration date of such entity; (3) whether such entity has engaged in good faith discussions with the department to resolve such violations and/or promulgate regulations which further the goals of this chapter.] 2. Hearing procedures. a. Upon a finding that there is good cause to believe that a candidate school, under the provisions of section 5001(4)(b)(iii)(4), or a licensed school, or an officer, agent, employee, partner or teacher, has committed a violation of this article, the commissioner shall initiate proceedings by serving a notice of hearing upon each and every such party subject to the administrative action. The school or such party shall be given reasonable notice of hearing, including the time, place, and nature of the hearing and a statement sufficiently particular to give notice of the transactions or occurrences intended to be proved, the material elements of each cause of action and the civil penalties and/or administrative sanctions sought. b. Opportunity shall be afforded to the party to respond and present evidence and argument on the issues involved in the hearing including the right of cross examination. In a hearing, the school or such party shall be accorded the right to have its representative appear in person or by or with counsel or other representative. Disposition may be made in any hearing by stipulation, agreed settlement, consent order, default or other informal method. c. (1) The commissioner shall designate an impartial hearing officer to conduct the hearing, who shall be empowered to: (A) administer oaths and affirmations; and (B) regulate the course of the hearings, set the time and place for continued hearings, and fix the time for filing of briefs and other documents; and (C) direct the school or such party to appear and confer to consider the simplification of the issues by consent; and (D) grant a request for an adjournment of the hearing only upon good cause shown. (2) The strict legal rules of evidence shall not apply, but the decision shall be supported by substantial evidence in the record. 3. Decision after hearing. The hearing officer shall make written findings of fact and conclusions of law, and shall also recommend in writing to the commissioner a final decision including penalties. The hearing officer shall mail a copy of his findings of fact, conclusions of law and recommended penalty to the party and his or her attorney, or representative. The commissioner shall make the final decision, which shall be based exclusively on evidence and other materials introduced at the hearing. If it is determined that a party has committed a violation, the commissioner shall issue a final order and shall impose penalties in accordance with this section. The commissioner shall send by certified mail, return receipt requested, a copy of the final order to the party and his or her attorney, or representative. The commissioner shall, at the request of the school or such party, furnish a copy of the transcript or any part thereof upon payment of the cost thereof. 4. Judicial review. Any order imposed under this section shall be subject to judicial review under article seventy-eight of the civil practice law and rules, but no such determination shall be stayed or enjoined except upon application to the court after notice to the commissioner. 5. Enforcement proceedings. The attorney general, in his or her own capacity, or at the request of the commissioner, may bring an appropriate action or proceeding in any court of competent jurisdiction to recover a fine or otherwise enforce any provision of this article. 6. Civil penalties and administrative sanctions. a. A hearing officer may recommend, and the commissioner may impose, a civil penalty not to exceed three [two] thousand five hundred dollars for any violation of this article. In the case of a second or further violation committed within [the previous] five years of the previous violation, the liability shall be a civil penalty not to exceed seven thousand five hundred dollars [five] thousand dollars for each such violation. b. Notwithstanding the provisions of paragraph a of this subdivision, a hearing officer may recommend, and the commissioner may impose a civil penalty not to exceed seventy five (one hundred) [fifty] thousand dollars or double the documented amount from which the school benefited, whichever is greater, for any of the following violations: (1) operation of a school without a license in violation of section five thousand one of this article; (2) operation of a school knowing that the school's license has been suspended or revoked; (3) use of false, misleading, deceptive or fraudulent advertising; (4) employment of recruiters on the basis of a commission, bonus or quota, except as authorized by the commissioner; (5) directing or authorizing recruiters to offer guarantees of jobs upon completion of a course; (6) failure to make a tuition refund when such failure is part of a pattern of misconduct; (7) the offering of a course or program that has not been approved by the commissioner; (8) failure to offer a course or program as approved by the commissioner; (9) admitting students, who subsequently drop out, who were admitted in violation of the admission standards established by the commissioner, where such admissions constitute a pattern of misconduct and where the drop out resulted at least in part from such violation; (10) failure to provide the notice of discontinuance and the plan required by subdivision seven of section five thousand one of this article; or (11) violation of any other provision of this article, or any rule or regulation promulgated pursuant thereto, when such violation constitutes part of a pattern of misconduct which significantly impairs the educational quality of the program or programs being offered by the school. For each enumerated offense, a second or further violation committed within [the previous] five years, shall be subject to a civil penalty not to exceed one and one-half the amount of the previous violation [seventy-five thousand dollars] for each such violation. c. In addition to the penalties authorized in paragraphs a and b of this subdivision, a hearing officer may recommend and the commissioner may impose any of the following administrative sanctions: (1) a cease and desist order; (2) a mandatory direction; (3) a suspension or revocation of a license; (4) a probation order; or (5) an order of restitution. d. Penalty factors. In the recommendation of any penalty, a hearing officer shall, at a minimum, give due consideration, where applicable, to the good faith of the violator [; the performance of the school with respect to student placement and retention rates, and students' acquisition of skills;] and the gravity of the violation [; and the harm caused to the student]. e. The commissioner may suspend a license [or registration] upon the failure of a school to pay any fee, fine, penalty, settlement or assessment as required by this article unless such failure is determined by the commissioner to be for good cause. f. All civil penalties, fines and settlements received after April first, nineteen hundred ninety shall accrue to the credit of the tuition reimbursement account established pursuant to section ninety-seven-hh of the state finance law. 7. Criminal penalties. In addition to any other penalties elsewhere prescribed: a. Any person who knowingly violates any of the provisions of this article shall be guilty of a class B misdemeanor punishable in accordance with the penal law. If the conviction is for a second offense committed within five years of the first conviction under this paragraph, such person shall be guilty of a class A misdemeanor punishable in accordance with the penal law. b. Any person who knowingly (1) falsifies or destroys school or other business records relating to the operation of the school with intent to defraud; (2) fails to make a tuition refund as required by section five thousand two of this article with the intent to defraud more than one person; or (3) operates a school without a valid license required by section five thousand one of this article shall be guilty of a class A misdemeanor punishable in accordance with the penal law. c. Any person who, having been convicted within the past five years of failing to make a tuition refund in violation of subparagraph two of paragraph b of this subdivision, knowingly and intentionally engages in a scheme constituting a systematic ongoing course of conduct involving the wrongful withholding of refunds in violation of section five thousand two of this article with the intent to defraud ten or more persons, and so withholds tuition refunds in excess of one thousand dollars, shall be guilty of a class E felony punishable in accordance with the penal law. d. Upon a determination that there exist reasonable grounds to believe that a violation of this article has been committed, or that any other crime has been committed in connection with the operation of a school required to be licensed pursuant to this article, the commissioner shall refer such determination, and the information upon which it is based, to the attorney general or to the appropriate district attorney. The attorney general or a district attorney may bring an action on his or her own initiative. 8. Private right of action. A student injured by a violation of this article may bring an action against the owner or operator of a licensed private school or candidate [registered business] school for actual damages or one hundred dollars, whichever is greater. A court may, in its discretion, award reasonable attorney's fees to a prevailing plaintiff. §5004 Private school agent's certificate. 1. a. No party may, for a consideration or remuneration procure, solicit or enroll any student for instruction in or given by any school within or without the state of New York, unless (i) the party is a salaried employee of the school and (ii) the party shall have secured a private school agent's certificate from the department pursuant to regulations of the commissioner. b. Upon submission of a complete new application for licensure, an applicant may procure, solicit or enroll any student for instruction; provided, however, that such applicant be in possession at all times during the procurement, solicitation or enrollment processes of a temporary approval certificate which the commissioner shall issue within five days of receipt by mail or on the same day at designated offices. A school shall submit such application for licensure on or before the first day of employment of such individual. c. No consideration or remuneration shall be paid in the form of a fee per student enrolled by a private school agent except pursuant to the following limitations: (1) a school may pay twenty-five percent of the consideration or remuneration after the student has completed three weeks of the program; (2) a school may pay the remainder of the consideration or remuneration after the student has completed eight weeks of the program; (3) the total amount of the consideration or remuneration paid per student may not exceed one percent of the annual salary paid to the agent. d. In promulgating regulations in relation to the issuance of such certificates and the conduct of the holders of such certificates, the commissioner shall give consideration to: (1) good moral character of the candidate for such certificate; (2) the use of ethical and fair practices in the presentation of the school's offerings; and (3) whether the prospective agent has within five years of the date of the application violated any provision of this article or the regulations of the commissioner adopted pursuant to this article. 2. Instruction, as contemplated by this section, shall be any plan or method for teaching any subject or subjects in any form or manner, including correspondence or home study. 3. Exempted from the requirements of this section are persons acting solely for schools which are not required to be licensed or are specifically exempted from the licensing or registration requirements of this article. Persons who are paid to procure, solicit or enroll students on the premises of schools required to be licensed or registered shall not be exempt from the provisions of this section. The certification requirements of this section shall not apply to persons receiving gifts or other non-monetary considerations valued at not more than seventy-five [twenty-five] dollars from a school from which they have graduated or are currently enrolled for each student referred for enrollment at the school. 4. Application and renewal application for a private school agent's certificate shall be filed on forms to be prescribed and provided by the commissioner. Said certificate shall be valid for three [two] years from the date of issuance. Certificates which have been renewed shall be valid for a period of three [two] years from the expiration date of the certificate which has been renewed. Every applicant and renewal applicant shall pay to the department a fee of two [one] hundred dollars. 5. The school director may apply for a private school agent’s certificate filed on forms to be prescribed and provided by the Commissioner without incurring the agent application fee. 6. No recovery shall be had against any student or enrollee and full recovery shall be made on any contract for or in connection with any instruction if the student or enrollee was procured, solicited or enrolled outside or on the school premises by a person paid to procure, solicit or enroll students but not having a valid private school agent's certificate pursuant to the provisions of this section at the time that the contract was negotiated or executed or the sale of the instruction was made, or by a person who holds such a certificate but has made fraudulent or improper claims. Each enrollment agreement shall include, where applicable the name of the agent responsible for procuring, soliciting or enrolling the student or enrollee. 7. The issuance of such a private school agent's certificate shall not be deemed to constitute approval of any course or of the person or institution offering, conducting or administering the same. 8. The commissioner, after giving to the certificate holder due notice and opportunity to be heard, may fine a private school agent, suspend or revoke a private school agent's certificate at any time for failure to comply with the provisions of the law or the regulations of the commissioner or for any other good cause. 9. No employer of a private school agent other than a school may indemnify, save harmless or otherwise reimburse any agent for the amount of any fines imposed pursuant to this section. If a person fined pursuant to this section can demonstrate to the satisfaction of the commissioner that the action for which the fine was imposed was undertaken pursuant to explicit instructions from the employer, the employer shall indemnify, save harmless, and reimburse that person for the fine and shall pay to the commissioner an additional fine of an equal amount. § 5005. Disclosure to students. The school shall disseminate to all prospective and enrolled students through an enrollment contract or agreement or other appropriate publications or documents, and in appropriate languages as required by the commissioner in regulation: a. information concerning the school, including but not limited to: (1) a description of the courses offered; (2) program objectives and the length of the program; (3) a schedule of tuition payments, fees and all other charges and expenses necessary for completion of the course or program; (4) the tuition refund and contract cancellation policies; (5) a description of the faculty and other instructional personnel and their qualifications; (6) the names of associates, agencies or governmental bodies which accredit, approve or license the school; (7) a description of any special facilities and services available to handicapped students; and (8) any other items identified by the commissioner in regulation following consultation with the advisory council; b. if the school advertises job placement rates as means of attracting students to enroll in the school, the most recent available data on employment and graduation statistics for students who have attended that school; c. information concerning any student financial assistance, including a description of the procedures and forms, student eligibility requirements and the rights and responsibilities of students receiving financial aid; d. the pass rate of graduates of the program for the most recent calendar year on any licensure or certification examination required by the state for employment in the particular vocational, trade, or career field; e. the process for obtaining a tuition refund from the tuition reimbursement fund and the availability of loan forgiveness in the event the school closes while the student is in attendance; f. a sample enrollment contract, a sample cancellation form developed by the department in consultation with the advisory council and a tuition reimbursement fund claim form; and |