(f) Each school shall submit annual statistical reports on forms prescribed by the commissioner. Such statistical reports shall be certified by the owner that they are true and accurate, in a manner established by the commissioner. The commissioner may require audited statistical reports upon a determination that a school has provided false or inaccurate statistical reports. Statistical reports shall be submitted annually for a reporting period established by the commissioner and shall include the following information:

1. (1) number of applicants, by program of instruction, who were accepted for enrollment during the reporting period;
2. (2) number of applicants, by program of instruction, who applied for, but were denied, enrollment because they failed to satisfy the entrance requirements;
3. (3) number of full-time and part-time students, by program of instruction, enrolled at the beginning of the reporting period;
4. (4) number of full-time and part-time students, by program of instruction, who enrolled during the reporting period;
5. (5) number of full-time and part-time students, by program of instruction, who were still enrolled at the end of the reporting period;
6. (6) number of full-time and part-time students, by program of instruction, who graduated during the reporting period;
7. (7) number of full-time and part-time students, by program of instruction, who withdrew without completing the program of instruction during the reporting period;
8. (8) number of full-time and part-time students, by program of instruction, who received financial assistance from Federal and/or State programs during the reporting period; and
9. (9) the employment or educational status, by program, of students graduating during the reporting period.

(g) Schools conducted for profit which provide instruction in English as a second language or preparation for the high school equivalency examinations to out-of-school youth or adults which are required to be licensed under section 5001 of the Education Law, pursuant to chapter 887 of the Laws of 1990, shall comply with the provisions of this Part, article 101 of the Education Law and all other applicable laws and regulations, in a time frame established by the commissioner. Such schools in operation prior to September 1, 1990 may be granted a variance from any provision of this Part relating to an initial or renewal application for licensure, if in the judgment of the commissioner, the educational quality of the program or financial viability of the school will not be impaired.

1. (1) paragraphs (8) and (9) of subdivision (f) of this section relating to the reporting of financial assistance and placement information;
2. (2) section 5002(1)(c)(1) of the Education Law relating to the passing of an entrance examination, provided that the commissioner determines that such action will not impair a student's ability to successfully complete the program;
3. (3) section 5002(1)(c)(2) of the Education Law relating to the required counseling plan for schools admitting students who do not possess a high school diploma or its equivalent, provided that the commissioner determines that such action will not impair a student's ability to successfully complete the program;
4. (4) section 126.4(a) of this Part relating to student-to-teacher ratio;
5. (5) section 126.4(e) of this Part relating to attendance requirements;
6. (6) section 126.5 of this Part relating to equipment and housing;
7. (7) section 126.7 relating to enrollment agreements with the exception of section 126.7(c) relating to refund policies for correspondence schools;
8. (8) section 126.9(a)(13) of this Part relating to financial information in a school's catalog;
9. (9) placement data as required in section 126.9(a)(14) of this Part for a school's catalog;
10. (10) section 126.9(a)(10) of this Part relating to facilities and equipment information in a school's catalog;
11. (11) section 5005(a)(7) of the Education Law relating to a description of facilities and equipment in the student disclosure material; and
12. (12) section 5005(c) of the Education Law relating to a description of financial information in the student's disclosure material.

(h) Alternate licensing procedures for correspondence, internet or home study schools.

Pursuant to section 5001(4)(f) of the Education Law, correspondence, internet or home study schools in which all approved programs and courses are under 300 hours shall be subject to all of the requirements of article 101 of Education Law and this Part, except that they shall be exempt from the following provisions:

(i) Alternate licensing procedures for schools exempt from licensure pursuant to subdivision (2) of section 5001 of the Education Law which elect to be licensed.

1. (1) Exempt schools operated, licensed, regulated, approved by or contracting with a governmental agency or authority, which elect to be licensed.

   1. (i) Exempt schools operated, licensed, regulated, approved by or contracting with a governmental agency or authority, which elect to be licensed, shall meet all of the requirements of article 101 of the Education Law and this Part, except that such schools may meet the requirement for a certificate of occupancy by meeting the requirement in paragraph (3) of this subdivision and except that such school shall be subject to an alternate requirement established by the governmental agency or authority, provided that the commissioner determines that such requirement is equivalent to a requirement established in one or more of the following provisions:

      1. (a) subdivisions (4) and (5) of section 5002 of the Education Law and section 126.4(a)-(d) and (f)-(g) of this Part relating to curriculum approval and reapproval;
      2. (b) subdivision (6) of section 5002 of the Education Law and section 126.6 of this Part relating to teacher and director licensing;
      3. (c) section 5004 of the Education Law and section 126.12 of this Part relating to school agents, for only those schools which enroll students solely on the basis of a contract with an organization or business, which do not solicit enrollment through communication aimed at the prospective student, and where there is no tuition liability to the student;
      4. (d) section 126.4(e)(2) of this Part relating to academic standards of progress; and
      5. (e) section 126.11 of this Part relating to school and student records.
   2. (ii) The commissioner shall consult with the governmental agency or authority which operates, licenses, regulates, approves or contracts with such a school before implementing the provisions of section 5003(6) of the Education Law relating to civil penalties and administrative action against such school.
2. (2) Other exempt schools which elect to be licensed. All exempt schools which elect to be licensed, with the exception of those specified in paragraph (1) of this subdivision, shall meet all of the requirements of article 101 of the Education Law and this Part, except that such schools may meet the requirement for a certificate of occupancy by meeting the requirement in paragraph (3) of this subdivision.
3. (3) For any exempt school which elects to be licensed pursuant to article 101 of the Education Law and this Part and is in existence prior to such licensure, a certificate of occupancy which was in effect at the time of application for licensure shall be acceptable to the commissioner, provided that the governmental authority issuing such certificate of occupancy has determined that the certificate of occupancy is valid as of that date.

(j) Alternate licensing requirements for nonpublicly funded ESL schools.

1. (1) General provisions.

   1. (i) Nonpublicly funded ESL schools shall be exempt from the requirements of this Part and article 101 of the Education Law, except as provided in this subdivision and sections 126.1 and 126.18 of this Part and paragraphs (b) and (c) of subdivision (1) of section 5001 of the Education Law, and subdivision (3) of section 5004 of the Education Law.
   2. (ii) Schools that meet the requirements of this subdivision shall receive initial certification for a two-year period and renewal certification for a four-year period and shall be listed in the New York State English as a Second Language School Registry.
   3. (iii) Schools shall be subject to unscheduled visits by the commissioner or the commissioner's designee to ensure the school's compliance with the requirements of this subdivision.
   4. (iv) Upon request by the department, schools shall provide any and all records necessary to review compliance with the requirements of this subdivision.
   5. (v) The payment of all fees and assessments required by this subdivision shall be considered a condition of certification.
   6. (vi) The definitions in section 126.1 of this Part shall be applicable to such schools.

2. (2) Application procedures.

   1. (i) Initial certification.

      1. (a) Every applicant and renewal applicant shall apply for certification on an application form prescribed by the commissioner and shall submit with such application a nonrefundable and nontransferable $5,000 certificate fee of which $3,000 shall accrue to the credit of the proprietary vocational school supervision account and $2,000 shall accrue to the tuition reimbursement account. For additional locations of currently certified operating schools, the application fee shall be $2,500 which shall accrue to the credit of the proprietary vocational school supervision account.

      2. (b) Schools shall submit the following information with a completed application for initial certification:

         1. (1) sample enrollment agreements, which meet the requirements in paragraph (6) of this subdivision, used for each English as a second language curriculum offered by the school;
         2. (2) a complete description of the content of all English as a second language curricula offered by the school in a form prescribed by the commissioner;
         3. (3) a description of refund policies which pertain to English as a second language curricula in the event a student fails to enter, withdraws or is discontinued from instruction;
         4. (4) educational and administrative policies and procedures that are provided students in English as a second language curricula upon enrollment;
         5. (5) disclosures required to be made to students, pursuant to paragraph (5) of this subdivision;
         6. (6) evidence, satisfactory to the commissioner, that the school meets the requirements relating to personnel in paragraph (3) of this subdivision;
         7. (7) evidence, satisfactory to the commissioner, that the school meets the requirements relating to facilities and equipment in paragraph (4) of this subdivision; and
         8. (8) an unaudited statement of revenue, as prescribed by the commissioner, for the previous fiscal year.

   2. (ii) Renewal of certification.

      1. (a) Schools shall apply for renewal of certification at least 120 days prior to the expiration of the current certificate on an application form prescribed by the commissioner and shall submit with such an application a nonrefundable and nontransferable fee in accordance with the provisions of section 5001(4)(b) of the Education Law.
      2. (b) Schools which received $500,000 or more in gross tuition in the previous school fiscal year shall submit with such completed application an audited statement of revenue to the commissioner for that fiscal year, and schools which received less than $500,000 in gross tuition in the previous school fiscal year shall submit either an audited statement of revenue or an unaudited reviewed statement of revenue, as prescribed by the commissioner, for that fiscal year provided that the school choosing to submit an unaudited reviewed statement of revenue had submitted an audited statement of revenue in the preceding year.
   3. (iii) A school shall submit to the commissioner any changes in the information, policy or programs which it has submitted in support of an application for initial certification or an application for renewal of certification 14 days prior to the date on which such changes take effect.

3. (3) Personnel.

   1. (i) Director.

      1. (a) Each school shall employ a director who shall meet the requirements in section 126.6(d)(1)(i), (2) and (3) of this Part and this subparagraph.
      2. (b) Directors' permits or licenses, issued on or after May 25, 2000, shall be renewable and valid only for the school for which they are issued. No individual may be employed as a director at more than one school without the approval of the commissioner. An ESL school director's license, issued on or after May 25, 2000, shall be valid for the same period for which the school is licensed or registered.
      3. (c) Individuals shall apply for a director's license, or renewal thereof, on an application form prescribed by the commissioner. Such application form shall be submitted to the commissioner with a nonrefundable and nontransferable application fee of $100. A school director's license renewal application shall be submitted with the renewal application of the employing school.
      4. (d) Any permanent director's license, issued prior to May 25, 2000, shall continue to be deemed approved without renewal until such time as the director leaves the school and location for which the license is valid.

   2. (ii) Private school agent.

      1. (a) Each school shall employ at least one private school agent who meets the requirements in this subparagraph.
      2. (b) Each agent shall produce his or her agent certificate upon the request of the commissioner, the commissioner's designee, or any prospective student.
      3. (c) A school shall submit an application for licensure for an agent on or before the first day of employment of such individual, in accordance with the requirements of section 126.12(a) of this Part.
      4. (d) A school or its private school agent, as applicable, shall meet the requirements in section 126.12(b)-(e) of this Part.
      5. (e) A private school agent meeting the requirements of this paragraph shall take responsibility for enrolling each student enrolled in an English as a second language curriculum.

   3. (iii) Teachers.

      1. (a) Teachers providing instruction in English as a second language programs at a nonpublicly funded ESL school shall have been awarded a baccalaureate or equivalent degree from an institution licensed or recognized by the department; and have successfully completed either an English as a second language training program recognized by the department or one year of teaching experience in an English as a second language program.
      2. (b) Upon a finding by the commissioner that the applicant possesses sufficiently unique and exceptional training and/or experience that are substantially the equivalent of the requirements set forth in clause (a) of this subparagraph, a variance may be granted from such requirements.
4. (4) Facilities and equipment. The buildings, rooms or space in which staff and students are housed for any purpose while attending school, and all facilities and equipment therein, shall meet the applicable standards of local fire, health and building authorities.

5. (5) Disclosure to students. For all students enrolled in English as a second language curricula, schools shall provide the following information to students in a format prescribed by the commissioner prior to the execution of the enrollment agreement with them:

   1. (i) a description of the status of the school as a nonpublicly funded English as a second language school certified by the New York State Education Department as meeting alternative licensing requirements and not subject to all of the licensing standards and requirements in article 101 of the Education Law and this Part which are applicable to licensed private career schools;
   2. (ii) a description of the complaint procedures established pursuant to Education Law, section 5003(1)(c); and
   3. (iii) a description of the process for obtaining a refund from the tuition reimbursement fund.

6. (6) Enrollment agreement.

   1. (i) An enrollment agreement shall be completed for all students enrolled in English as a second language curricula. Such an enrollment agreement shall meet the requirements in section 126.7(a) of this Part.

   2. (ii) The enrollment agreement shall be printed in no less than 10-point type, shall contain no advertising or extraneous material and shall set forth briefly and clearly the following:

      1. (a) the name of the school;
      2. (b) the title of the curriculum, course or courses for which the student is contracting;
      3. (c) the length of the curriculum, course or courses in instructional hours;
      4. (d) the name and address of the student;
      5. (e) the full contract price for instruction, including all fees, tuition, and costs of textbooks, materials, and equipment;
      6. (f) the method of payment;
      7. (g) such reasonable rules, regulations and conditions as the school may desire to set forth in the agreement;
      8. (h) a separately signed acknowledgment by the student that he or she has received disclosure material, as required by paragraph (5) of this subdivision;
      9. (i) the refund the school will make in the event a student fails to enter, withdraws or is discontinued from instruction which is consistent with the refund policy submitted to the department, pursuant to the requirement in subclause (2)(i)(b)(3) of this subdivision; and
      10. (j) the name and certificate number of the school agent responsible for enrolling the student.
7. (7) Advertising. A school shall meet the requirements of section 126.3 of this Part and shall be subject to section 5002(7) of the Education Law.

8. (8) Records. Records and files of a school pertaining to English as a second language curricula shall be maintained for three years at the location of the school or other principal place of business in New York State, unless specific disposition is authorized by the commissioner, and shall include:

   1. (i) copies of all advertising, bulletins and other promotional materials;
   2. (ii) the attendance register for each class, laboratory or session;
   3. (iii) records of instructional staff showing qualifications and teaching schedules;
   4. (iv) a completed copy of the student enrollment agreement contract signed by both an authorized agent of the school and the student prior to the time instruction begins;
   5. (v) records of all tuition and fees owed and paid by the student; and
   6. (vi) date of student completion or discontinuance.
9. (9) Teachout plans. A school may submit a teachout plan for English as a second language curricula to the commissioner for approval, subject to the requirements of section 5006 of the Education Law and section 126.16 of this Part.
10. (10) Disciplinary actions and penalties. Section 5003 of the Education Law shall be applicable to nonpublicly funded ESL schools, except that subparagraph (2) of paragraph (b) of subdivision (1) of such section shall not be applicable and in lieu of that requirement good cause shall include violation of any provision of this subdivision, including requirements of this Part and article 101 of the Education Law made applicable by this subdivision. Section 126.14 of this Part shall be applicable.

11. (11) Supervision account and tuition reimbursement account assessments.

    1. (i) The commissioner shall annually assess each school an assessment equal to five-tenths of one percent of its gross tuition, as determined by the audited statement of revenue or the unaudited reviewed statement of revenue, as required by this subdivision, of which three-tenths of one percent shall accrue to the benefit of the proprietary vocational school supervision account. Any school which received $500,000 or more in gross tuition in a school fiscal year shall be required to submit to the commissioner an annual audited statement of revenue prepared in accordance with generally accepted accounting principles for that fiscal year. In addition, any school which has a gross tuition of less than $500,000 in a school fiscal year shall file with the commissioner either an audited statement of revenue or an unaudited reviewed statement of revenue provided, however, that any such school shall file an audited statement of revenue the fiscal year after an unaudited reviewed statement of revenue is submitted. For such schools, audited statements of revenue are required every two years, at minimum, with unaudited reviewed statements of revenue allowed during the alternate year. Upon a determination by the commissioner that a school has submitted false or inaccurate statements or that a significant, unsubstantiated decline in gross tuition has occurred, the commissioner may require any such school to file an audited statement of revenue pursuant to this paragraph even during alternate years when unaudited reviewed statements would ordinarily be allowed.
    2. (ii) The commissioner shall also assess each school additional assessments as applicable under subdivision (10) of section 5007 of the Education Law.
    3. (iii) For ESL schools in operation in the year prior to the issuance of their certification, such annual assessments prescribed in this paragraph shall begin in their initial year of certification, based on the schools' gross tuition from such previous year. For new ESL schools, the commissioner shall base the assessments prescribed in this paragraph on the annualized gross tuition of the school computed by the department from financial reports from the school as required by the department, and the assessments shall be prorated based upon the number of quarters that the school has operated in the assessment year.
    4. (iv) The assessments prescribed in subparagraphs (i) and (ii) of this paragraph shall be based upon each school's gross tuition from the previous year, and shall be payable in equal installments which shall be due on June 1st, September 1st, December 1st and March 1st.

12. (12) Tuition reimbursement account.

    1. (i) For all English as a second language curricula, schools shall comply with subdivisions (1) through (8) of section 5007 of the Education Law, except that paragraph (a) of subdivision (3) and paragraph (b) of subdivision (4) of such section shall not be applicable. Subparagraph (3) of paragraph (b) of subdivision (3) of such section shall not be applicable and in lieu of that requirement claimants shall be required to show that the school has failed to make the refund within the time period required by school policy.

    2. (ii) A student enrolled in an English as a second language curriculum in a school which has not closed or ceased operation, and who has not dropped out, is entitled to a full refund, provided that:

       1. (a) the student has submitted a complaint form to the commissioner; and

       2. (b) the commissioner has determined that the school has committed one or more of the following violations:

          1. (1) operating a school with a registry certificate which has been suspended, revoked or not renewed;
          2. (2) using false, misleading, deceptive or fraudulent advertising;
          3. (3) having no licensed private agent responsible for enrolling the student;
          4. (4) using fraudulent or improper claims by a licensed agent or school representative to enroll the student;
          5. (5) misrepresenting the school or failing to comply with the requirements of paragraph (2) of this subdivision;
          6. (6) dismissing or terminating a student for other than just cause; or

          7. (7) committing any additional violation for which the commissioner demonstrates that the student would not have enrolled in the curriculum but for the commission of that violation.

             (k) Alternate licensing requirements for non-profit licensed careers schools that are exempt from taxation and whose programs are funded exclusively through donations.

             Pursuant to Education Law section 5001(4)(f)(3), non-profit licensed career schools that are exempt from taxation under section 501(c)(3) of the Internal Revenue Code and whose programs, including registration fees, the sale of books, supplies, services, kits, uniforms or equipment are funded entirely through donations, exclusive of public sources, from individuals or philanthropic organizations, or endowments, and interest accrued thereon, shall be subject to all of the requirements of article 101 of Education Law and this Part, except that:

13. (1) such schools shall be exempt from the following requirements of Education Law:

    1. (i) Education Law section 5002(3), relating to tuition liability;
    2. (ii) Education Law section 5001(4)(e)(i), relating to the inclusion in financial statements of refunds due and owing to past or presently enrolled students;
    3. (iii) Education Law section 5002(2)(b)(5), relating to the inclusion in any school record of the amount of any refund paid to any student;
    4. (iv) Education Law section 5005(a)(4), relating to disclosure to prospective and enrolled students of any refund policy;
    5. (v) Education Law section 5005(e) and (f), relating to a tuition reimbursement fund claim form.

14. (2) such schools shall also be exempt from the following requirements of this Part:

    1. (i) section 126.4(c)(6) of this Part, relating to data required to be submitted about tuition and other charges and method of payment;
    2. (ii) section 126.7(b)(6) through (9) of this Part, relating to the inclusion in enrollment agreements of any tuition charges or fees or method of payment;
    3. (iii) section 126.7(b)(15) of this Part, relating to any refund a school will make under certain prescribed circumstances;
    4. (iv) section 126.7(d) of this Part, except section 126.7(d)(3) of this Part thereof, relating to the inclusion in enrollment agreements of a reasonable adjustment of tuition and other fees, and any refund policies;
    5. (v) section 126.7(e) of this Part, relating to the option to use the refund policy of a nationally recognized accrediting agency and the use of the refund policy required by Federal law;
    6. (vi) section 126.7(g) of this Part, relating to when refunds must be paid to students who withdraw, cancel, or are discontinued;
    7. (vii) section 126.9(a)(8) of this Part, relating to the inclusion in the school catalog of a schedule of fees or charges;
    8. (viii) section 126.9(a)(9) of this Part, relating to the inclusion in the school catalog of school policies and regulations governing the refund of any unused portion of tuition, fees and other charges in certain circumstances;
    9. (ix) section 126.9(a)(13)(i) of this Part, relating to State and Federal financial aid only, except that any private grant, scholarship, or other financial assistance offered to students by the school, which shall not expose the student to any tuition liability, shall be included in such school’s catalog;
    10. (x) section 126.9(a)(13)(ii)(d) of this Part, relating to the terms and expected schedules of repayment of any loan received by the student as a part of the student’s financial aid;
    11. (xi) section 126.9(a)(18) of this Part, relating to the inclusion in the school catalog of information about tuition refunds from the Tuition Reimbursement Account (TRA);
    12. (xii) section126.9(a)(19) of this Part, relating to the inclusion in the school catalog of requirement to include a weekly tuition liability chart for each program that indicates the amount of refund due the student in the event of a withdraw; and
    13. (xiii) section 126.11(a)(10) of this Part, relating to the maintenance of records of tuition, fees, public loans and grants, and their disbursement, by a school for seven years.