An Act to amend 440.52 (10) (f) of the statutes; Relating to: legal action against certain private postsecondary schools.
Summary
SB629 would expand the legal remedies available to students who attend certain private for-profit postsecondary schools in Wisconsin. Under current law, students may sue if a proprietary school operates without required state approval and recover fees paid, costs, and reasonable attorney fees. This bill adds a separate basis for a lawsuit when a proprietary school provides materially false, fraudulent, or misleading information to a student, and it allows a prevailing student to recover fees paid to the school plus costs and reasonable attorney fees.
The bill amends Wisconsin Statutes section 440.52(10)(f), which governs remedies related to proprietary schools. It does not create a new regulatory approval process, but it broadens the existing private right of action so that students can seek civil relief not only for unlawful operation, but also for deceptive recruiting or enrollment practices. The new cause of action would apply only to conduct occurring on the effective date of the act and after.
Impact
SB629 would increase legal exposure for private for-profit colleges and proprietary schools by giving students an explicit statutory fraud-based claim tied to false or misleading information. The practical effect is to strengthen student protections and potentially increase litigation risk, while preserving the existing remedy for schools that operate without required approval. The bill would amend section 440.52(10)(f) of the Wisconsin statutes and apply prospectively to future conduct.
Sentiment
The bill appears to have been introduced as a consumer-protection measure aimed at students and accountability for private postsecondary schools. Because there are no committee transcripts or recorded votes in the provided materials, there is no documented debate or split in the available record. The bill ultimately failed to pass pursuant to Senate Joint Resolution 1, indicating it did not advance to enactment despite its protective purpose.
Contention
The main point of contention is likely the expansion of liability for proprietary schools, especially the new ability for students to sue over allegedly false, fraudulent, or misleading information. Supporters would view the bill as a needed safeguard against deceptive recruiting and enrollment practices, while opponents from the private college sector might argue it invites more litigation, increases compliance costs, and creates uncertainty about what statements qualify as misleading. No specific objections or amendments are documented in the provided record.