The Private Business and Vocational Schools Act of 2012 (105 ILCS 426) is the Illinois law that requires a private business and vocational school to hold a permit of approval from the Illinois Board of Higher Education (IBHE) before it operates. IBHE's Division of Private Business and Vocational Schools administers it. This page is for owners and advisers of training programs in Illinois. Whether the Act applies to any particular business is a legal question. IBHE decides it on an application, a lawyer can advise on it, and a court settles any dispute. This page only reports what the statute, the rules and IBHE's pages say.
Who is covered
| Question | What the text says |
|---|---|
| Who needs a permit (Sec. 20) | A person subject to the Act who runs a private business and vocational school, or who creates a course to sell to one, needs an IBHE permit of approval before operating |
| What is a "school" (Sec. 15) | A privately run institution that charges tuition, on site or by distance education, to prepare people for a trade, a non-professional occupation or a profession not state-licensed, or to add to job skills |
| Separate approval | Each non-degree program, location and classroom extension; approval is not transferable |
| Exemptions (Sec. 30) | Nine categories, such as religion-only teaching, employer in-service programs that charge no tuition and serve only employees, degree-focused accredited institutions and registered apprenticeships sponsored by labor organizations; each has conditions |
| Who decides | IBHE approves or denies an exemption application; a dispute is a legal matter |
How it touches your taxes and payroll
The Act has no tax provision. Its surety bond (a bond that repays students if a school closes) is sized to prepaid, unearned tuition, and IBHE fees are paid by check or money order. How tuition and school fees are taxed lies outside this Act. Schools that hire instructors still face ordinary payroll questions, such as employee or independent contractor status.
Next, read the rules and numbers or the checklist and FAQs, which sets out the Chalk-Line Permit Check. Related Illinois law: the Consumer Fraud Act, which treats certain violations of this Act as unlawful practices. See also our Illinois state page and small business owners.
Official sources
- Illinois General Assembly: Private Business and Vocational Schools Act of 2012 (105 ILCS 426)
- Illinois Board of Higher Education: Private Business and Vocational Schools FAQ
- Illinois Board of Higher Education: PBVS fee schedule (PDF, undated)
- Illinois General Assembly: 23 Ill. Adm. Code 1095.120, School Application and Renewal Fees
This page is a plain-language summary. The official source controls if there is any difference.