§ 3B-12

(Section scheduled to be repealed on January 1, 2031) Sec. 3B-12. Enrollment agreements. (a) As used in this Section, "clear and conspicuous" means at least 10 point bold type and larger than other text. Enrollment agreements shall be used by barber, cosmetology, esthetics, hair braiding, and nail technology schools licensed to operate by the Department and shall include the following written disclosures: (1) The name and address of the school and the addresses where instruction will be given; (2) The name and description of the course of instruction, including the number of clock hours in each course and an approximate number of weeks or months required for completion; (3) The scheduled starting date and calculated completion date; (4) The total cost of the course of instruction including any charges made by the school for tuition, books, materials, supplies, and other expenses; (5) A clear and conspicuous statement that the contract is a legally binding instrument when signed by the student and accepted by the school; (6) A clear and conspicuous caption in bold type that is at least 10 point, larger than the other text in the agreement, and in all capital letters that states "BUYER'S RIGHT TO CANCEL" under which it is explained that the student has the right to cancel the initial enrollment agreement until midnight of the fifth business day after the student's enrollment date; and if notice of the right to cancel is not given to any prospective student at the time the enrollment agreement is signed, then the student has the right to cancel the agreement at any time and receive a refund of all monies paid to date within 10 days of cancellation; (7) A notice to the students that the cancellation must be in writing and given to the registered agent, if any, or managing employee of the school; (8) The school's refund policy for unearned tuition, fees, and other charges; (9) The date of the student's signature and the date of the student's admission; (10) The name of the school employee or agent responsible for procuring, soliciting, or enrolling the student; (11) A clear statement that the institution does not guarantee employment and a statement describing the school's placement assistance procedures; (12) The graduation requirements of the school; (13) The contents of the following notice, in at least 10 point bold type and larger than the other text in the agreement: "NOTICE TO THE STUDENT" "Do not sign this contract before you read it or if it contains any blank space. You are entitled to an exact copy of the contract you sign." (14) A statement either in the enrollment agreement or separately provided and acknowledged by the student indicating the number of students who did not complete the course of instruction for which they enrolled for the past calendar year as compared to the number of students who enrolled in school during the school's past calendar year; (15) The following clear and conspicuous caption, in at least 10 point bold type, larger than the other text in the agreement, and in all capital letters: "COMPLAINTS AGAINST THIS SCHOOL MAY BE REGISTERED WITH THE DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION", set forth with the address, telephone number, and website address for the Department's Complaint Intake Unit. (b) If the enrollment is negotiated orally in a language other than English, then copies of the above disclosures shall be tendered in the language in which the contract was negotiated prior to executing the enrollment agreement. (c) The school shall comply with all applicable requirements of the Retail Installment Sales Act in its enrollment agreement or student contracts. (d) No enrollment agreement or student contract shall contain a wage assignment provision or a confession of judgment clause. (e) Any provision in an enrollment agreement or student contract that purports to waive the student's right to assert against the school, or any assignee, any claim or defense the student may have against the school arising under the contract, including a claim or defense pursuant to Section 3B-6, shall be void. No enrollment agreement or student contract shall contain provisions requiring student confidentiality or non-disclosure related to the school and any claim or defense the student may have against the school, and any such provisions shall be void. (f) Two copies of the enrollment agreement shall be signed by the student. One copy shall be given to the student and the school shall retain the other copy as part of the student's permanent record. (g) The school shall comply with all applicable requirements of the Student Debt Assistance Act. (h) At any time upon the Department's request, a licensed school shall provide its current enrollment agreement to the Department for review and compliance with the requirements of this Act, any applicable rules, and other applicable laws. A licensed school shall be required to have Department review and approval of all enrollment agreements and contracts with students. (i) Licensed public schools will be deemed to be in compliance with this Section if the schools comply with the requirements of its public institution.

Legislative History

(Source: P.A. 104-153, eff. 1-1-26 .)