(a) The State Board of Private Career Education shall determine the sum of each surety bond based upon the following guidelines:

1. (1) Except as provided in Arkansas Code § 6-51-620 (a)(6)(B) and (C), a school shall procure a bond equal to ten percent (10%) of the gross tuition with a minimum bond amount of five thousand dollars ($5,000) and a maximum bond amount of seventy-five thousand dollars ($75,000);
2. (2) Schools that have no gross tuition charges assessed for the previous year shall secure a surety bond in the amount of ten thousand dollars ($10,000); and
3. (3) If at any time a schools has any program with a total cost per program of three thousand dollars ($3,000) or more they shall be required to secure a bond.

(c)

1. (1) Each school licensed under this part shall maintain a continuous surety bond.
2. (2) Proof of continued coverage by a surety bond shall be submitted to the board on an annual basis.

(d) The surety bond shall be conditioned to provide indemnification to any student or enrollee who suffers loss or damage as a result of:

1. (1) A violation of a provision of this part or any rule of this board by the school or its officers, admissions representatives, or employees;
2. (2) The failure or neglect of the school to faithfully perform all agreements, express or otherwise, with the student, enrollee, one (1) or both of the parents of the student or enrollee, or a guardian of the student or enrollee as represented by the application for licensure and the materials submitted in support of that application; or
3. (3) An admissions representative's misrepresentation in procuring the student's enrollment.

(g)

1. (1) A surety on that bond may be released after the surety has made a written notice of at least thirty (30) days before the release.
2. (2) However, a surety may not be released from the bond unless all sureties on the bond are released.

(h)

1. (1) The license shall be suspended when that school is no longer covered by a surety bond meeting the required amount.
2. (2) The board shall notify the school in writing at least ten (10) days prior to release of the surety or sureties that the license is suspended until another surety bond is filed in the manner and amount required under this part.

(i)

1. (1) The bond shall be based on gross tuition meaning the total amount collected by a school during the most recently completed twelve-month fiscal year, reduced only by the amount of refunds paid during the fiscal year, for tuition, application fees, registration fees, and those other fees deemed appropriate by rules of the board, provided however, that for a school located outside of Arkansas which is authorized to recruit in this state, “gross tuition” means only the amount of such tuition and fees collected from residents of this state.
2. (2) The information regarding gross tuition shall be submitted to the board on the forms provided.

(j)

1. (1) The bond shall be a surety bond issued by a company authorized to do business in the state.
2. (2) The bond shall be to the State to be used for payment of a tuition refund owed to a student or enrollee.