75-59-1 - Permit required; application; fees; bonds; suits.
§ 75-59-1. Permit required; application; fees; bonds; suits.
No person, firm or corporation shall contract to furnish correspondence courses to persons within the state unless such person, firm or corporation shall have obtained a permit from the office of the Secretary of State, either (a) the State Department of Education, (b) the State Board for Community and Junior Colleges, or (c) the Board of Trustees of State Institutions of Higher Learning, whichever is appropriate, and the Office of the Attorney General. An application for a permit shall be made on forms furnished by the Secretary of State, the State Department of Education, the State Board for Community and Junior Colleges or the Board of Trustees of Institutions of Higher Learning, as the case may be, and the Attorney General and such application shall designate an agent for the service of summons within the state; shall contain the name and address of the applicant; the type of courses offered with a brief summary of the course of studies offered; and one (1) copy of all textbooks or other teaching aids and training materials which are incorporated in the course of study shall be filed with said application. The applicant shall pay the Secretary of State a fee of Two Hundred Fifty Dollars ($250.00). The applicant shall file a bond with his application in the sum of Fifty Thousand Dollars ($50,000.00) conditioned to satisfy any judgment rendered by a court of competent jurisdiction, in favor of any person who has sustained damages as a result of the breach of a contract of instruction by the permittee. Such bond shall be executed by the permittee and a resident surety company qualified to transact business within the state. Such permit shall be valid for one (1) year from the date thereof. Suits against the permittee and his surety may be brought in the county where the plaintiff resides, or the county where the defendant has his principal place of business, or where his resident agent resides. This chapter shall not apply to any business school or business college holding a current certificate or license issued under the applicable law of this state. In addition, this chapter shall not apply to religious instructions offered by a recognized church denomination; provided, however, that no fee or charge of any kind whatever may be levied or collected directly or indirectly for such instructions or certificates issued in connection therewith or incidental thereto. No person shall be granted a permit unless he is an individual of good moral character.
Sources: Codes, 1942, § 4228-01; Laws, 1962, ch. 380, § 1; Laws, 1970, ch. 354, § 1; Laws, 1975, ch. 387; Laws, 1976, ch. 354; Laws, 1998, ch. 334, § 5, eff from and after July 1, 1998.