Section 92-41-005 - Procedures for Authorization to OperateEach private postsecondary career school desiring authorization to operate in Nebraska shall make an application to the Department upon forms supplied by the Department. The forms shall include, but not be limited to, the following information:
005.01 The legal title and name of the school;005.02 The owners, ownership structure, controlling officers, and managing employees; 005.02A The names, addresses and current status of all schools of which each applicant has previously owned any interest in, and currently owns any interest in, and a declaration as to whether any of these schools were ever denied accreditation, licensing, or authorization to operate from any governmental body or accrediting agency.005.02B A statement verifying that none of the following persons have any felony convictions: 005.02B1 Any persons having twenty-five (25) percent or more ownership of the applicant school as provided in section 004.03;005.02B2 Resident director as defined in section 002.15;005.02B3 Administrative staff members as defined in section 002.01.005.03 The specific course(s) of instruction which will be offered, and the specific purposes of such instruction;005.04 The location(s) where such instruction shall be given and a description of the physical facilities thereof;005.05 A specific listing of the equipment available for instruction with the maximum enrollment that such equipment will accommodate;005.06 The educational and teaching qualifications of instructors in each course and subject of instruction, and the teacher to student ratio established by the school;005.07 The qualifications of administrators;005.08 It shall include, on the appropriate forms, the identification of any branch facility or separate classroom. When a branch facility or separate classroom is to be added to a school subsequent to its most recent application for an authorization to operate, the school, prior to opening any such facility or classroom for education, shall utilize the same form to notify the Department. A facility which does not meet the criteria for a branch facility described in section 002.04 shall be considered a separate private postsecondary career school requiring separate authorization.005.09 Information that Shall Accompany the Application 005.09ADescriptive Literature. The application shall be accompanied by descriptive literature published or proposed to be published by the school. This shall include copies of all brochures, catalogs, promotional materials, written scripts, media advertising, and promotional literature that may be used to induce residents to enroll in courses of instruction.005.09BSurety Bond or Other Security Agreement. The application shall be accompanied by a surety bond or other security agreement as detailed below: 005.09B1 At the time application is made for authorization to operate, the private postsecondary career school must file with the Department a good and sufficient surety bond in the penal sum of twenty thousand dollars ($20,000.00) or other security agreement deemed satisfactory by the Department. Such bond or other security shall cover branch facilities. The bond or agreement shall be executed by the applicant as principal and by a surety company qualified and authorized to do business in this state. The bond or agreement shall be conditioned to provide indemnification for any student or enrollee or his or her parent or guardian determined by the Board to have suffered loss or damage as a result of any act or practice which is a violation of the Private Postsecondary Career School Act by the school and that the surety also shall pay any final judgement rendered by any court of this state having jurisdiction upon receipt of written notification of the judgement from the Board. Regardless of the number of years that such bond or agreement is in force, the aggregate liability of the surety thereon shall in no event exceed the penal sum of the bond or agreement. The bond or agreement may be continuous.005.09B2 Other security agreements acceptable to the Department include only the following: 005.09B2a Twenty thousand dollars ($20,000) Escrow Account which provides the State of Nebraska Department of Education with a recourse against the assets in the account as it would have against an insurance company on a bond. The terms on such an account would be exactly the same as the terms on a bond.005.09B2b Twenty thousand dollars ($20,000) Irrevocable Letter of Credit from a bank, made payable to the State of Nebraska and deposited with the State Department of Education as would a bond. The Irrevocable Letter of Credit will be released to the school a year after the school has ceased to be in operation, or immediately when replaced by another instrument with similar amount.005.09B3Release of Surety Bond or Agreement. The surety bond or agreement shall cover the period of the authorization to operate, as appropriate, except when a surety is released as provided in this section. A surety on any bond or agreement filed under section 005.09B may be released there from after such surety serves written notice thereof on the Department at least thirty (30) days prior to the release. Such release shall not discharge or otherwise affect any claim theretofore or thereafter filed by a student or enrollee or his or her parent or guardian for loss or damage resulting from any act or practice which is a violation of the Private Postsecondary Career School Act alleged to have occurred while the bond or agreement was in effect or for a school ceasing operations during the term for which tuition has been paid while the bond or agreement was in force.005.09B4Suspension of Authorization to Operate. Authorization for a school to operate shall be suspended by operation of law when the school is no longer covered by a surety bond or agreement as required by section 005.09B. The Commissioner shall cause the school to receive at least thirty (30) days written notice prior to the release of the surety to the effect that the authorization shall be suspended by operation of law until another surety bond or agreement is filed in the same manner and like amount as the bond or agreement being terminated.005.09CFees. All fees collected pursuant to the Act shall be remitted by the Department to the State Treasurer for credit to the Private Postsecondary Career Schools Cash Fund. The fund shall be used only for the purpose of administering the Act. No fee shall be subject to refund. The board in consultation with the advisory council shall establish fees sufficient to cover the total cost of administration, as provided in Section 85-1643(4) R.R.S., except that such fees shall not exceed one hundred ten (110) percent of the previous year's total cost. The fees that shall accompany the application, and the various other fees authorized by the Act, are provided for in Appendix A. 005.09DSchool Safety. The application shall be accompanied by a statement of assurance signed by the Resident Director or a member of the school's administrative staff stating the school complies with all applicable health, fire, safety, and sanitation laws and regulations.005.09EContracts. The application shall be accompanied by copies of enrollment agreements and retail installment contracts to be used in Nebraska.005.09FCollections. The application shall be accompanied by a description of the methods used to collect tuition, and procedures for collecting delinquent payments.005.09GFinancial Statement. The applicant shall submit financial statements compiled in accordance with generally accepted accounting procedures and practices. Such statements shall be consistent with the requirements in section 004.12.005.09HOwnership of Facility. The applicant shall submit evidence of ownership or lease of the premises for one year or more contingent upon issuance of an authorization to the school to operate.005.09IAgents' Permits. Schools which apply for authorization to operate must include their applications for agents' permits.92 Neb. Admin. Code, ch. 41, § 005
Amended effective 11/8/2016.