HB-4536 Summary

• Transfers regulatory authority over proprietary schools from the State Board of Education to the Department of Energy, Labor, and Economic Growth.

• Establishes a 3-year license validity period for proprietary schools accredited by national or regional accrediting agencies recognized by the U.S. Secretary of Education, and a 1-year license period for all other proprietary schools.

• Allows proprietary schools to sell goods or services produced by students as part of educational programs if students receive clear written disclosure, practical training is faculty-supervised, customers are notified the provider is a student, and revenue supports the school.

• Permits the department to assess administrative fines up to $1,000 per violation (maximum $5,000 aggregate per transaction) as an alternative to license revocation, and increases criminal penalties for operating without a license to a fine of up to $10,000 and imprisonment up to 1 year.

• Requires proprietary schools to adopt and publish written policies allowing students to file complaints with the department for violations of the act or its regulations.