Postsecondary Proprietary Schools

Under the Utah Postsecondary Proprietary School Act, Utah Code §13-34 any private institution, including business, modeling, paramedical, tax preparation, trade and technical schools, which offer post-secondary education in consideration of the payment of tuition or fees for the attainment of educational, professional or vocational objectives is required to register before advertising, recruiting or operating in this state.

Frequently Asked Questions

No.  Unless the school is exempt or registered with the Division it may not do any of the following:
  1. advertise a proprietary school;
  2. recruit students for a proprietary school; or
  3. operate a proprietary school.
Yes.  File the Request for Exemption application. Schools that are exempted under the Act are those that are:
  1. a Utah institution directly supported, to a substantial degree, with funds provided by:
    1. the state;
    2. a local school district; or
    3. any other Utah governmental subdivision;
  2. a lawful enterprise that offers only professional review programs, including C.P.A. and bar examination review and preparation courses;
  3. a private institution that:
    1. provides postsecondary education; and
    2. is owned, controlled, operated, or maintained by a bona fide church or religious denomination, that is exempted from property taxation under the laws of this state;
  4. an institution that is accredited by a regional or national accrediting agency recognized by the United States Department of Education;
  5. subject to Subsection (4), a business organization, trade or professional association, fraternal society, or labor union that:
    1. sponsors or conducts courses of instruction or study predominantly for bona fide employees or members; and
    2. does not advertise as a school;
  6. an institution that exclusively offers one or more of the following:
    1. general education:
      1. that is remedial, avocational, nonvocational, or recreational in nature; and
      2. for which the institution does not advertise occupation objectives or grant a degree, diploma, or other educational credential commensurate with a degree or diploma;
    2. preparation for individuals to teach courses or instruction described in Subsection (1)(f)(i)(A);
    3. courses in English as a second language;
    4. instruction at or below the 12th grade level;
    5. nurse aide training programs that are approved by:
      1. the Bureau of Health Facility Licensing and Certification; or
      2. an entity authorized by the Bureau of Health Facility Licensing and Certification to approve nurse aide certification programs; or
    6. content:
      1. that is exclusively available on the Internet;
      2. for which the institution charges $1,000 or less in a 12-month period; and
      3. for which the institution does not grant educational credentials other than a certificate that indicates completion and that does not represent achievement or proficiency;
  7. an institution that offers only workshops or seminars:
    1. lasting no longer than three calendar days; and
    2. for which academic credit is not awarded;
  8. an institution that offers programs:
    1. in barbering, cosmetology, real estate, or insurance; and
    2. that are regulated and approved by a state or federal governmental agency;
  9. an education provider certified by the Division of Real Estate under Section 61-2c-204.1;
  10. an institution that offers aviation training if the institution:
      1. is approved under Federal Aviation Regulations, 14 C.F.R. Part 141; or
      2. provides aviation training under Federal Aviation Regulations, 14 C.F.R. Part 61; and
    2. does not collect tuition, fees, membership dues, or other payment more than 24 hours before the student receives the aviation training; and
  11. an institution that provides emergency medical services training if all of the institution's instructors, course coordinators, and courses are approved by the Department of Health.

According to the Utah Postsecondary Proprietary School Act, §13-34-105(1)(d) a school or institution which is accredited by a regional or national accrediting agency recognized by the United States Department of Education is exempt from registration with the Division, if it establishes an exemption with the Division.  Click here for the Request for Exemption form.  This filing is a one-time filing with no application fee.

If the school is accredited and seeking a Certificate of State Authorization for Title IV funding, the school should not file an exemption and should file under the Utah Postsecondary School State Authorization Act, §13-34a.   Click here for the Postsecondary State Authorization site.

The Postsecondary Proprietary School's registration is effective for a period of two years after the date of issuance of a Certificate of Registration by the Division.  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.

An Exempt registration is a one-time registration that is effective as long as the organization is operating in an exempt capacity.

If any information contained in the application becomes incorrect or incomplete, then the proprietary school is required to correct the application or file the complete information as required by the division within thirty (30) days after the information becomes incorrect or incomplete.
For Proprietary Schools:
Initial registration fee: $500
Renewal/Review registration fee: Is one percent (1%) of the gross tuition income of the registered program(s) during the previous year, but not less than $500 or more than $2,500.
For Exempt Organizations: NONE

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.

A. Total tuition and fee income received by the Applicant during the 12 month period of preceding the date of this application (not including books and supplies purchased by students) $________
B. Total amount refunded to students during the same period $________
C. Gross tuition and fee income less refunds [Line A minus Line B] $________
D. Multiply line C by .01 $________
E. Amount of registration fee (rounded to the nearest $100, with a minimum fee of $500 and a maximum fee of $2,500.) $________

Yes.  A form of Surety may be required of a proprietary school in the form of a surety bond, certificate of deposit, or irrevocable letter of credit.  The form of surety must be provided by the institution before a certificate of registration will be issued by the division unless the institution is exempt from this surety requirement.

To be exempt from the Surety requirement the total cost per program is $500 or less. Or, the length of each program is less than one month.

For Initial Applications, determine the amount of surety according to the projected number of students that are expected to enroll during the first year of operation.

Number of Students Amount of Surety
More than 100 $187,500
50 to 99 $125,000
1 to 49 $62,500

Institutions that submit evidence acceptable to the Division that the school's gross tuition income from any source during the first year will be less than twenty-five thousand dollars ($25,000) may provide a surety of twelve thousand, five hundred dollars ($12,500) for the first year of operation.

For Renewal and Review Applications, determine the amount of surety according to the worksheet below:

A. Total tuition and fee income $________
B. Amount refunded to students $________
C. Gross tuition less refunds (line a minus line b) $________
D. Multiply line “c” by .25 $________
E. Surety Amount (rounded to the nearest $1,000) $________

The minimum amount of surety to be submitted annually after the first year of operation will be based on 25% of the annual gross income from the registered programs for the previous year rounded to the nearest $1,000 with a minimum amount of $12,500 and the maximum of $300,000.

Yes.  In determining the amounts that you are required to pay for registration fee and for the bond, your calculations must include the total amount of tuition received from all students who are enrolled in your Utah operations.  This includes the tuition of those students who receive their education online, whether in-state or out-of-state, unless you can demonstrate that the students are enrolled in one of your other schools that you are operating in another state.
No.  Acceptance of a Postsecondary Proprietary School's registration statement and the issuing of certificate of registration to operate a school signifies that the legal requirements prescribed by statute and rules have been satisfied.  It does not mean that the Division endorses, supervises, recommends or accredits the institution.  The Division is not an accrediting agency.  It cannot recommend or comment on the quality or potential benefits on instruction received from any proprietary school that is registered under the Utah Postsecondary Proprietary School Act.

Utah Administrative Code R152-34-9 states,

  1. Should an institution cease operations or otherwise discontinue its educational activities, it shall immediately notify the Division in writing 30 days prior to closing.  The chief administrative officer shall send formal written notice to the Division; this notice shall include:
    1. The date on which the institution will officially close;
    2. A written plan for access to and preservation of permanent records;
    3. What actions the institution plans to take in regards to its students; and
    4. In the event an institution closes with students enrolled who have not completed their programs, a list of such students, including the amount of tuition paid and the proportion of their program completed, shall be submitted to the Division, with all particulars.
  2. Once an institution has notified the Division of its intent to cease operations, it shall not advertise, recruit, offer or otherwise enroll new students into its programs.
  3. School records consist of the following permanent scholastic records for all students who are admitted, withdrawn or terminated:
    1. entrance application and admission acceptance information;
    2. attendance and performance information, including transcripts which shall at a minimum include the program in which the student enrolled, each course attempted and the final grade earned;
    3. graduation or termination dates; and
    4. enrollment agreements, tuition payments, refunds, and any other financial transactions.
  4. An institution that closes or otherwise discontinues operations shall maintain its surety required under R152-34-7(11) and/or R152-34-7(12) until:
    1. At least one year has passed since the institution has notified the Division in writing that the institution has closed or discontinued operation; and
    2. The institution has satisfied the closure requirements of this section by providing documentation acceptable to the Division to show that it has satisfied all possible claims for refunds that may be made against the institution by students of the institution at the time the institution discontinued operations and by persons who were students of the institution within one year prior to the date that the institution discontinued operations, whichever is shorter.
  5. Within ten (10) business days after the closure, the institution shall provide the Division with all the information outlined above and in accordance with Section 13-34-109, including copies of student transcripts.

Utah Administrative Code R152-34-9 states,

  1. An institution that closes or otherwise discontinues operations shall maintain its surety required under R152-34-7(11) and/or R152-34-7(12) until:
    1. At least one year has passed since the institution has notified the Division in writing that the institution has closed or discontinued operation; and
    2. The institution has satisfied the closure requirements of this section by providing documentation acceptable to the Division to show that it has satisfied all possible claims for refunds that may be made against the institution by students of the institution at the time the institution discontinued operations and by persons who were students of the institution within one year prior to the date that the institution discontinued operations, whichever is shorter.
  2. Within ten (10) business days after the closure, the institution shall provide the Division with all the information outlined above and in accordance with Section 13-34-109, including copies of student transcripts.

Registration

Exempt Institutions Postsecondary Schools Surety Forms Other Forms

Laws and Rules

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