LRB-3950/1
GMM:bjk:jf
2009 - 2010 LEGISLATURE
December 16, 2009 - Introduced by Senators Risser, Vinehout and Taylor,
cosponsored by Representatives Hixson, Danou, Townsend, A. Williams,
Benedict
and Parisi. Referred to Committee on Agriculture and Higher
Education.
SB431,1,5 1An Act to amend 20.292 (2) (g) and 38.50 (7) (g); and to create 38.50 (12), 38.50
2(13) and 111.335 (1) (cx) of the statutes; relating to: the use of the terms college,
3university, state, and Wisconsin in the name of a school; the issuing,
4manufacture, or use of a false academic credential; the false use of a legitimate
5academic credential; making an appropriation; and providing a penalty.
Analysis by the Legislative Reference Bureau
Under current law, subject to certain exceptions, no private trade,
correspondence, business, or technical school may advertise or operate in this state
unless the school is first approved by the Educational Approval Board (EAB). Those
exceptions include schools that are supported mainly by taxes, schools that are of a
denominational character, schools that are approved by other state agencies, and
schools that are accredited by accrediting agencies recognized by the EAB.
This bill prohibits a school, including a school that is exempt from the EAB
approval requirement, from using the term "college" or "university" in its name
unless the school provides an educational program for which it awards an associate
or higher degree and the school has accreditation recognized by the U.S. secretary
of education; has the foreign equivalent of that accreditation, as determined by the
EAB; or has accreditation recognized by the Council for Higher Education
Accreditation. This prohibition, however, does not apply to a school that was doing
business in this state with the approval of the EAB prior to the effective date of the
bill. The bill also prohibits a school, including a school that is exempt from the EAB

approval requirement, from using the term "state" or "Wisconsin" in its name if the
use of that term operates to mislead the public into believing that the school is
affiliated with the University of Wisconsin System, the technical college system, or
this state, unless the school actually is so affiliated. If a school uses the term
"college," "university," "state," or "Wisconsin" in violation of the bill, the school may
be required to forfeit not more than $500 for each day of operation without that
approval and a student of the school may bring a civil action to recover fees paid to
the school, plus costs and disbursements, including reasonable attorney fees.
The bill also prohibits all of the following:
1. Knowingly issuing or manufacturing a false academic credential, as defined
in the bill. A person who violates this prohibition is guilty of a Class A misdemeanor,
which is punishable by a fine not to exceed $10,000 or imprisonment not to exceed
nine months, or both.
2. Knowingly using a false academic credential or falsely claiming to have a
legitimate academic credential as follows: 1) in any communication to a client or to
the general public, in connection with any business, trade, profession, or occupation;
2) for the purpose of obtaining a license or other approval required to practice a trade,
profession, or occupation; 3) for the purpose of obtaining admission to an authorized
institution of higher education, as defined in the bill; or 4) for the purpose of
obtaining an employment position with a state agency or with a political subdivision
of the state, including an elective or appointive position, whether compensated or
not, a promotion, transfer, or reassignment from such a position, or an increase in
compensation or benefits for such a position. A person who violates any of these
prohibitions may be required to forfeit not more than $1,000.
For purposes of those prohibitions:
1. "Academic credential" means a degree, transcript, certificate, or other
similar document that indicates the completion of a program, course, or course of
instruction leading to, or the earning of academic credit toward, the granting of an
associate, baccalaureate, or graduate degree.
2. "False academic credential" means an academic credential issued or
manufactured by a person that is not an authorized institution of higher education.
3. "Legitimate academic credential" means an academic credential issued by
an authorized institution of higher education.
4. "Authorized institution of higher education" means an educational
institution that has accreditation recognized by the U.S. secretary of education, has
the foreign equivalent of that accreditation, as determined by the EAB, or has
accreditation recognized by the Council for Higher Education Accreditation; is
approved by the EAB to operate as a proprietary school in this state; operates in this
state and is a school exempt from EAB approval; does not operate in this state, but
is licensed or otherwise approved by the appropriate state agency of another state
and is an active applicant for accreditation by an accrediting body recognized by the
U.S. secretary of education or by the Council for Higher Education Accreditation; or
has been found by the EAB to meet standards of academic quality comparable to
those of an educational institution located in the United States that has

accreditation recognized by the U.S. secretary of education or by the Council for
Higher Education Accreditation to offer credentials of the type and level claimed.
Finally, the bill provides that it is not employment discrimination because of
conviction record to refuse to employ or license, or to bar or terminate from
employment or licensure, any individual who has been convicted of knowingly using
a false academic credential, or of falsely using or claiming to have a legitimate
academic credential in violation of the bill.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report concerning the proposed penalty and the costs or savings that are likely to
result if the bill is enacted.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB431, s. 1 1Section 1. 20.292 (2) (g) of the statutes is amended to read:
SB431,3,62 20.292 (2) (g) Proprietary school programs. The amounts in the schedule for
3the examination and approval of proprietary school programs. Ninety percent of all
4moneys received from the issuance of solicitor's permits under s. 38.50 (8) and from
5the fees under s. 38.50 (10) and all moneys received from the fees under s. 38.50 (13)
6(d)
shall be credited to this appropriation account.
SB431, s. 2 7Section 2. 38.50 (7) (g) of the statutes is amended to read:
SB431,3,148 38.50 (7) (g) Approve courses of instruction, schools, changes of ownership or
9control of schools, and teaching locations meeting the requirements and standards
10established by the board and complying with rules promulgated by the board and;
11publish a list of the schools and courses of instruction approved and a list of the
12schools that are authorized to use the term "college," "university," "state," or
13"Wisconsin" in their names; and make those lists of the schools available on the
14board's Internet site
.
SB431, s. 3 15Section 3. 38.50 (12) of the statutes is created to read:
SB431,4,9
138.50 (12) Name of school. (a) No school, including a school described in sub.
2(1) (e) 1. to 8., may use the term "college" or "university" in its name unless the school
3provides an educational program for which it awards an associate or higher degree
4and the school has accreditation recognized by the U.S. secretary of education; has
5the foreign equivalent of that accreditation, as determined by the board; or has
6accreditation recognized by the Council for Higher Education Accreditation. This
7paragraph does not apply to a school that was doing business in this state with the
8approval of the board prior to the effective date of this paragraph .... [LRB inserts
9date].
SB431,4,1410 (b) No school, including a school described in sub. (1) (e) 1. to 8., may use the
11term "state" or "Wisconsin" in its name if the use of that term operates to mislead the
12public into believing that the school is affiliated with the University of Wisconsin
13System, the technical college system, or this state, unless the school actually is so
14affiliated.
SB431,4,1715 (c) The attorney general or any district attorney may bring an action in circuit
16court for the enforcement of this subsection, including bringing an action to restrain
17by temporary or permanent injunction any violation of par. (a) or (b).
SB431,4,2018 (d) Any person who violates par. (a) or (b) may be required to forfeit not more
19than $500. Each day of operation in violation of par. (a) or (b) constitutes a separate
20offense.
SB431,4,2421 (e) In addition to any other remedies provided by law, a student who attends
22a school that is in violation of par. (a) or (b) may bring a civil action to recover fees
23paid to the school, together with costs and disbursements, including reasonable
24attorney fees.
SB431, s. 4 25Section 4. 38.50 (13) of the statutes is created to read:
SB431,5,1
138.50 (13) False academic credentials. (a) In this subsection:
SB431,5,52 1. "Academic credential" means a degree, transcript, certificate, or other
3similar document that indicates the completion of a program, course, or course of
4instruction leading to, or the earning of academic credit toward, the granting of an
5associate, baccalaureate, or graduate degree.
SB431,5,76 2. "Authorized institution of higher education" means an educational
7institution that meets any of the following requirements:
SB431,5,108 a. Has accreditation recognized by the U.S. secretary of education; has the
9foreign equivalent of that accreditation, as determined by the board; or has
10accreditation recognized by the Council for Higher Education Accreditation.
SB431,5,1111 b. Is approved by the board to operate in this state.
SB431,5,1212 c. Operates in this state and is a school described in sub. (1) (e) 1. to 8.
SB431,5,1613 d. Does not operate in this state, but is licensed or otherwise approved by the
14appropriate state agency of another state and is an active applicant for accreditation
15by an accrediting body recognized by the U.S. secretary of education or by the Council
16for Higher Education Accreditation.
SB431,5,2017 e. Has been found by the board to meet standards of academic quality
18comparable to those of an educational institution located in the United States that
19has accreditation recognized by the U.S. secretary of education or by the Council for
20Higher Education Accreditation to offer credentials of the type and level claimed.
SB431,5,2221 3. "False academic credential" means an academic credential issued or
22manufactured by a person that is not an authorized institution of higher education.
SB431,5,2423 4. "Legitimate academic credential" means an academic credential issued by
24an authorized institution of higher education.
SB431,6,2
1(b) Any person who knowingly issues or manufactures a false academic
2credential is guilty of a Class A misdemeanor.
SB431,6,53 (c) Any person who knowingly uses a false academic credential, or who falsely
4claims to have a legitimate academic credential, as follows may be required to forfeit
5not more than $1,000:
SB431,6,76 1. In any communication to a client or to the general public, in connection with
7any business, trade, profession, or occupation.
SB431,6,98 2. For the purpose of obtaining a license or other approval required to practice
9a trade, profession, or occupation.
SB431,6,1110 3. For the purpose of obtaining admission to an authorized institution of higher
11education.
SB431,6,1612 4. For the purpose of obtaining an employment position with a state agency or
13with a political subdivision of the state, including an elective or appointive position,
14whether compensated or not; of obtaining a promotion, transfer, or reassignment
15from such a position; or of obtaining an increase in compensation or benefits for such
16a position.
SB431,6,2017 (d) The board may charge a fee for evaluating an educational institution under
18par. (a) 2. e. in an amount that is sufficient to cover all costs that the board incurs
19in evaluating the institution. All fees collected by the board under this paragraph
20shall be credited to the appropriation account under s. 20.292 (2) (g).
SB431, s. 5 21Section 5. 111.335 (1) (cx) of the statutes is created to read:
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