MI SB0786

Proprietary schools accredited by nationally recognized agencies receive 3-year licenses, while non-accredited schools receive 1-year licenses, with annual fees required for both.

Schools may sell goods or services produced by students as part of approved educational programs if practical training is faculty-supervised, students are notified in writing before enrollment, customers are informed students produced the goods/services, and revenue supports only the school.

Department of Energy, Labor, and Economic Growth must inspect proprietary schools, set licensing fees, and require schools to adopt written policies allowing students to file complaints for violations.

Proprietary schools must provide surety bonds (expiring June 30 annually) to indemnify students for losses if the school closes and students cannot complete their approved programs.

Administrative fines up to $1,000 per violation (maximum $5,000 per transaction) replace license revocation as an option; operating without a license or after revocation is a misdemeanor punishable by up to $10,000 fine or 1 year imprisonment.