Assembly Bill 637 aims to regulate the enrollment of Wisconsin residents in certain private postsecondary schools, particularly for-profit institutions, based on their revenue sources. The bill stipulates that a proprietary school may not enroll Wisconsin residents if less than 20 percent of its annual revenue comes from sources other than federal student aid in two of the three preceding fiscal years. This provision mirrors a federal requirement but modifies the percentage threshold. The Department of Safety and Professional Services (DSPS) is tasked with creating rules to enforce this regulation.

Additionally, the bill introduces new legal language under section 440.52 (4) of the statutes, defining terms such as "annual revenue" and "federal funds" in relation to compliance with federal education assistance regulations. The act is set to take effect in the 2028-29 academic year, allowing time for the necessary rule-making and implementation processes.