62-4-120 - Operation of a school.
62-4-120. Operation of a school.
(a) Except as otherwise provided in this chapter, it is unlawful for any person, firm or corporation to operate a school without conspicuously displaying a valid license issued by the board under this chapter.
(b) An application for a license to operate a school shall be submitted by its owner on the form prescribed by the board. The application shall be accompanied by:
(1) A fee as set by the board;
(2) A surety bond executed by the applicant and a surety company authorized to do business in this state, made payable to the state of Tennessee in the amount of five thousand dollars ($5,000), and conditioned that the school will afford to its students the full course of instruction required under this chapter;
(3) The proposed hours of operation for the school; and
(4) True and exact copies of applications from at least twenty (20) students, not including students transferring from another school, instructor trainees, or junior instructors, who will enroll and attend school for a minimum of twenty-five (25) hours per week; provided, that this student enrollment requirement shall apply only to a new school.
(c) (1) In lieu of the surety bond required by subdivision (b)(2), the applicant may file with the board:
(A) A federally insured certificate of deposit issued by any financial institution in this state in an amount no less than five thousand dollars ($5,000); or
(B) An irrevocable letter of credit issued by any federally insured bank or savings and loan association in an amount no less than five thousand dollars ($5,000).
(2) The bond, certificate of deposit or letter of credit filed in accordance with this section shall be in full force and effect whenever and wherever the school is operated.
(d) (1) A person, firm or corporation shall be eligible to receive a license or renewal of a license to operate a school only if the school employs at least:
(A) One (1) licensed instructor, where the enrollment is twenty (20) students or less;
(B) Two (2) licensed instructors, or one (1) licensed instructor and one (1) junior instructor who has not been employed as a junior instructor for more than three (3) years, where the enrollment is greater than twenty (20) but no greater than forty (40) students; and
(C) One (1) additional licensed instructor or junior instructor who has not been employed as a junior instructor for more than three (3) years, for each additional enrollment of twenty (20) students or fraction of twenty (20) students.
(2) For the purposes of this subsection (d), student does not include persons enrolled in an instructor training program or junior instructor.
(3) A school shall employ at least one (1) licensed instructor for each junior instructor employed.
(4) Any school offering an instructor training program shall conduct instruction for instructor trainees at a different time or in a separate classroom from instruction for students.
(e) Prior to the opening of a new school or the relocation of an existing school, the school must pass an initial inspection by at least one (1) member of the board. The inspection shall be made within ten (10) days of receipt by the board of a request for the inspection.
(f) (1) If a new school passes the required inspection, the board shall issue a license to operate the new school. A new school shall be closed to the public for ninety (90) days.
(2) If a relocated school passes the required inspection, the board shall reissue the license showing the change of address upon receipt of a fee as set by the board.
(g) (1) If the ownership of a school changes, the new owner may not operate the school more than thirty (30) days after the date of the change of ownership unless, within the thirty-day period, the new owner has submitted an application for a license to operate the school in accordance with subsection (b). The school shall not be considered as a new school for purposes of subdivision (b)(4).
(2) If the transferred school passes an inspection by at least one (1) member of the board, the board shall issue a license to operate the school to the new owner.
(h) A prospective purchaser of a school may request the board to determine whether, or on what conditions, the prospective purchaser would be qualified for licensure under this chapter. The request shall be submitted on the form prescribed by the board and shall be accompanied by a fee as set by the board. The prospective purchaser will receive a license to operate the school if, within six (6) months after receipt of a favorable determination from the board, the prospective purchaser:
(1) Acquires ownership of the school;
(2) Files an application for the license in accordance with subsection (b); and
(3) Fulfills any conditions stipulated by the board.
(i) Each school shall be inspected at least annually by a member of the board.
[Acts 1986, ch. 817, § 20; 1988, ch. 902, § 11; 1989, ch. 93, §§ 7-11; 1989, ch. 523, §§ 131-133; 1996, ch. 897, § 13.]