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Bill > SB631

WI SB631

WI SB631
Student financial protection at certain private postsecondary schools. (FE)

summary

Introduced
11/14/2025
In Committee
11/14/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

This bill increases a student protection fee imposed on private for-profit colleges and requires these colleges to maintain a reserve account for students who suffer loss or damage in certain circumstances, including fraud or school closure. Under current law, before a private for-profit postsecondary institution (proprietary school) may operate in this state, it must obtain approval from the Department of Safety and Professional Services. The approval must be renewed annually. DSPS establishes fees for approving proprietary schools, including a “student protection fee” in an amount set by rule. DSPS must discontinue annually collecting student protection fees while the balance in the fund holding the fees exceeds $1,000,000. DSPS may expend the revenue from student protection fees to indemnify students, parents, or sponsors for losses resulting from a school closure and for preserving student records of schools that discontinue operations. The bill sets the student protection fee at a rate of $3 per $1,000 of adjusted gross annual school revenue and increases, from $1,000,000 to $5,000,000, the fund balance threshold at which DSPS must stop annually collecting student protection fees. The bill also prohibits DSPS from approving a proprietary school, whether LRB-5163/1 ARG:cjs 2025 - 2026 Legislature SENATE BILL 631 upon initial application or renewal, unless the school maintains a reserve account to provide indemnification to any student who suffers loss or damage as a result of 1) fraud or any false representation by the school or a person acting on behalf of the school or 2) the school’s failure to perform its contractual obligations to the student, including the school’s closure. With an exception for a new school, the balance of the reserve account may not be less than 25 percent of the amount of the school’s highest annual revenue in the preceding five-year period. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill increases student protections for private for-profit postsecondary schools by implementing two key changes. First, it modifies the student protection fee structure, changing the rate to $3 per $1,000 of a school's adjusted gross annual revenue and raising the fund balance threshold from $1,000,000 to $5,000,000, at which point the Department of Safety and Professional Services (DSPS) would stop collecting annual fees. Second, the bill requires these schools to maintain a reserve account that can provide financial compensation to students who experience loss or damage due to fraud, false representations, or the school's failure to fulfill contractual obligations, including in cases of school closure. For established schools, this reserve account must be at least 25 percent of the school's highest annual revenue from the past five years, while new schools must establish a reserve account at 25 percent of their projected first-year revenue. The bill applies to both initial and renewal applications for school approval and will take effect on the first day of the third month after its publication, aiming to provide greater financial protection and accountability for students attending private for-profit postsecondary institutions.

Committee Categories

Education

Sponsors (22)

Last Action

Fiscal estimate received (on 02/09/2026)
(1 Companion Bills)

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