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Postsecondary Proprietary Schools operating in Utah must file with the Division of Consumer Protection a registration application
or an exemption application before advertising, recruiting or operating in Utah.
A proprietary school is defined by the Utah Postsecondary Proprietary School Act to mean any private institution, including business,
modeling, paramedical, tax preparation, trade and technical schools, which offers post-secondary education in consideration of the
payment of tuition or fees for the attainment of educational, professional or vocational objectives, other than those schools that are
exempted from the Act. Schools that are exempted under the Act are those that:
- Are government funded;
- Offer instruction exclusively at or below the 12th grade level;
- Offer only professional review courses;
- Are owned and operated by a bona fide church or religious denomination;
- Are accredited by a regional or national accrediting agency that is recognized by the U.S. Department of Education;
- Are organized by a business organization for its employees;
- Offer workshops or seminars that last no longer than three days and offer no academic reward;
- Offer a program in barbering, cosmetology, real estate, or insurance that is regulated and approved by another government agency;
- Offers emergency medical services training if all of the institution’s instructors, course coordinators and courses are approved by the Department of Health;
- Is approved under Part 141, Federal Aviation Regulations, 14 C.F.R. Chapter 141; or provides aviation training under Part 61, Federal Aviation Regulations, 14 C.F.R. Chapter 61 and exclusively offer aviation training that a student fully receives within 24 hours after the student pays any tuition, fee, or other charge for the aviation training.
The school's registration is effective for a period of two years after the date of issuance of a Certificate of Registration by the
Division. If any information contained in the school's application materially changes, the school should notify the Division within 30
days of the change. On the one year anniversary of the Certificate of Registration, the school will be required to file an application
for registration review, at which time the Division will review the school's surety and status of programs.
The division collects the following fees in accordance with U.C.A. Subsection 13-34-107(5):
- Initial registration application fees will be based on the expected gross income of the registered program during the first year of
operation. The initial application fee will be computed as one-half of one percent of the gross tuition income of the registered program(s)
expected during the first year, but not less than $100 or more than $2,000. The institution will provide documentation to substantiate the
amount of the fee, in a form specified by the division.
- Each year after the initial registration, the school shall pay annual registration fees computed as one-half of one percent of the
gross tuition income of the registered program(s) during the previous year, but not less than $100 or more than $2,000. The institution
shall provide documentation to substantiate the amount of the fee, in a form specified by the division. The annual registration fee is
due on the anniversary date of the institution's certificate of registration.
All registration fees collected by the division will be used in the administration of the Act and Rules.
A satisfactory bond, certificate of deposit, or irrevocable letter of credit must be provided by the institution before a certificate of
registration will be issued by the division unless the institution is exempt from surety. An institution will be exempt from the surety
requirement if its program is less than one month in length or the total program cost is less than $500. The obligation of the surety
will be that the institution, its officers, agents, and employees will (1) faithfully perform the terms and conditions of contracts for
tuition and other instructional fees entered into between the institution and persons enrolling as students, and (2) conform to the
provisions of the Utah Postsecondary Proprietary School Act and Rules. The bond, certificate of deposit, or letter of credit must be in
a form approved by the division and issued by a company authorized to do such business in Utah. The surety must be payable to the division
to be used for creating teach-out opportunities or for refunding tuition, book fees, supply fees, equipment fees, and other instructional
fees paid by a student or potential student, enrollee, or his or her parent or guardian.
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