Ala. Admin. Code r. 290-030-050-.07

Current through Register Vol. 43, No. 1, October 31, 2024

Section 290-030-050-.07 - Agent's Permits

Publicity used for solicitation of students by agents shall be governed by Alabama Administrative Code r. 290-030-050-.06.

(1) No person, except those representing schools exempted or entitled to exemption in Code of Ala. 1975, § 16-46-3 and validated in Alabama Administrative Code r. 290-030-050-.03, shall present materials, sell courses, or solicit students for enrollment outside the boundaries of the licensed school facilities unless an Agent's Permit is first secured by the school from the State Department of Education.

(2) The application for each agent's permit shall be submitted to the Department on Form PS-5, Alabama Administrative Code r. 290-030-050-.04(2)(c)4 and shall be accompanied by a fee of fifty dollars ($50.00 in U. S. Currency) in the form of a cashier's check or money order made payable to the Alabama State Department of Education and a surety bond of two thousand five hundred dollars ($2,500.00 in U. S. Currency). Such surety bond shall be continuous and shall be conditioned to provide indemnification to any student suffering loss as a result of any fraud or misrepresentation used in procuring the enrollment. The surety bond shall be supplied by the private school as a blanket surety covering each representative in the amount of two thousand five hundred dollars ($2,500.00 in U. S. Currency) made payable to the Alabama State Department of Education.

(3) Each agent's permit shall be valid for a period of one year from the date issued and shall be renewed for a fee of twenty-five dollars ($25.00 in U. S. Currency). Application for permit renewal shall be made on Form PS-5, as prescribed in Alabama Administrative Code r. 290-030-050-.04(2)(c)4. and shall be accompanied by the required agent surety bond of two thousand five hundred dollars ($2,500.00 in U. S. Currency).

(4) Upon satisfactory review of an agent's credentials, the State Department of Education shall issue to the private school, defer, or deny a permit within thirty (30) days of receipt of all required materials. A pocket card will be issued giving the agent's name and address, the name and address of the employing school, and certifying that the person whose name and photo appear on the card is an authorized agent of the school. Each agent must have the permit in possession when representing the school as an agent. The private school shall be notified of incomplete applications. All required renewal materials shall be supplied to the Alabama State Department of Education thirty (30) days prior to the expiration date. Expired permits may be reinstated upon submission of all application materials and fees required of initial applicants.

(5) One complimentary agent's permit shall be issued without fee or surety requirements to an owner or administrator of each licensed school identified as a principal base of operation. Application for a complimentary agent's permit shall be made on Form PS-5, Alabama Administrative Code r. 290-030-050-.04(2)(c)4.

(6) Schools utilizing agents shall provide indemnification to each student suffering loss as a result of any economic or academic fraud or misrepresentation by said agents in procuring enrollment according to Alabama Administrative Code r. 290-030-050-.04(2) and Code of Ala. 1975, § 16-46-6(c).

(7) No person shall be issued an agent's permit to represent any private school until it has been determined by the State Department of Education that the school has qualified for a license and a license has been issued.

(8) An agent's permit shall be placed on probation, suspended, or revoked by the Department if the holder solicits or enrolls students through fraud, deception, or misrepresentation. Each agent's permit, conditioned by expired surety bond, shall be suspended by the Department for thirty (30) days and thereafter revoked if surety bond is not restored.

(9) No persons or private school shall seek reimbursement from any student for any charge(s) on any enrollment contract secured by a representative of the private school if the representative soliciting the students or selling the course(s) was not a holder of an agent's permit as required by Code of Ala. 1975, § 16-46-6 at the time of presentation.

(10) The issuance of an agent's permit shall not be deemed to constitute endorsement or recommendation of any course, person, or institution.

(11) Each agent's permit which is revoked by the Department or whose employment is terminated prior to the expiration date shall be returned to the State Department of Education by the licensed school.

Author: Dr. Eddie R. Johnson.

Ala. Admin. Code r. 290-030-050-.07

June 13, 1991 adopted effective July 25, 1991.

Statutory Authority:Code of Ala. 1975, § 16-46-6, as amended.