§ 16-50-5 - Solicitation – Issuance and revocation of permits.
SECTION 16-50-5
§ 16-50-5 Solicitation – Issuance andrevocation of permits. – (a) No person representing any school or other individual or organizationoffering courses in this state, or from a place of business in this state,shall sell any course or solicit students for a course in this state for aconsideration or remuneration unless he or she first secures a permit from thedepartment of elementary and secondary education. If the agent represents morethan one school, a separate permit shall be obtained for each schoolrepresented by the agent. Upon approval for a permit the department ofelementary and secondary education shall issue a pocket card to the personwhose name appears on it, giving that person's name and address, the name andaddress of his or her employing school, and certifying that the person whosename appears on the card is an authorized agent of the school. The applicationfor a permit shall be made on forms to be furnished by the department ofelementary and secondary education and shall be accompanied by a fee oftwenty-five dollars ($25.00) and a surety bond acceptable to the department ofelementary and secondary education in the penal sum of one thousand dollars($1,000). The bond may be continuous and shall be conditioned to provideindemnification to any student suffering loss as a result of any fraud ormisrepresentation used in procuring his or her enrollment, and may be suppliedby the agent of a privately owned school and by the school itself as a blanketbond covering each of its agents and the school in the amount of one thousanddollars ($1,000). A permit shall be valid for one year from the date on whichit was issued. The liability of the surety on the bond for each representativecovered by it shall in no event exceed the sum of one thousand dollars ($1,000)as an aggregate for any and all students for all breaches of the conditions ofthe bond by the representatives. The surety of any bond may cancel the bondupon giving thirty (30) days' notice in writing to the department of elementaryand secondary education and after this shall be relieved of liability for anybreach of condition occurring after the effective date of the cancellation. Anapplication for renewal shall be accompanied by a fee of twenty-five dollars($25.00) and a surety bond, as provided in this subsection, if a continuousbond has not been furnished. All fees collected for the issuance or renewal ofthe permits shall be deposited in the state treasury to the credit of thegeneral fund.
(b) No person representing a school or other organizationoffering courses, which school or other organization is located outside thisstate, shall sell any course or solicit students for the course in this statefor a consideration or remuneration unless that person first secures a permitfrom the department of elementary and secondary education in the manner and onthe terms provided in subsection (a) of this section.
(c) Any permit applied for pursuant to subsection (a) or (b)of this section shall be granted or denied within thirty (30) days of thereceipt of the application for it by the department of elementary and secondaryeducation. If the department of elementary and secondary education has notcompleted its determination with respect to the issuance of a permit pursuantto this section within this period, it shall issue a temporary permit to theapplicant, which permit shall be sufficient to meet the requirements of thischapter until any time as the determination is made.
(d) Any permit issued may, upon ten (10) days' notice andafter a hearing, be revoked by the department of elementary and secondaryeducation if the holder of the permit solicits or enrolls students throughfraud, deception, or misrepresentation.
(e) The fact that a bond is in force pursuant to subsection(a) or (b) of this section shall not limit or impair any right of recoveryavailable pursuant to law, nor shall the amount of damages or other relief towhich any plaintiff may be entitled.
(f) No recovery shall be had on any contract for or inconnection with a course by any person selling or administering the course ifthe representative of the person was not the holder of a permit as required bythis section and the representative did not display the permit at the time thatthe representative negotiated the contract for or sold the course.
(g) The issuance of a permit pursuant to this section shallnot be deemed to constitute approval of any course or the person or institutionoffering, conducting, or administering the course. Any representation contraryto this subsection or tending to imply that a permit issued pursuant to thissection constitutes approval shall be misrepresentation within the meaning ofthis chapter.