WI AB638

Sets the student protection fee for private for-profit colleges at $3 per $1,000 of adjusted gross annual school revenue, replacing the previous amount set by administrative rule

Increases the fund balance threshold from $1,000,000 to $5,000,000, at which point the Department of Safety and Professional Services must stop collecting annual student protection fees

Requires proprietary schools to maintain a reserve account for indemnifying students who suffer losses from fraud, false representation, or the school's failure to meet contractual obligations including closure

Reserve account balance must equal at least 25% of the school's highest annual revenue over the preceding 5-year period; new schools must set the reserve at 25% of projected first-year revenue

Takes effect on the first day of the 3rd month after publication and applies to both initial and renewal applications for school approval