House Bill 204 Summary

• Transfers registration authority for postsecondary educational institutions and proprietary schools from the State Board of Education to the Director, with the board retaining rule-making authority.

• Requires proprietary schools to obtain surety bonds protecting students from financial loss, with the Director permitted to accept reduced bond amounts supplemented by other financial instruments for newly registered schools during the first 5 years.

• Prohibits agents from making false, deceptive, or misleading statements and allows students to bring civil actions against agents for violations; establishes maximum civil penalties and allows courts to award damages, attorney's fees, and investigative costs.

• Creates criminal penalties of up to 6 months imprisonment and $5,000 fine for intentional violations of the chapter, and up to 12 months imprisonment and $10,000 fine for intentionally failing to register.

• Authorizes the Director to conduct investigations, issue subpoenas, examine institutional records, issue cease-and-desist orders, and seek injunctive relief through district courts to enforce compliance.