So, uh… To be quite honest, I wasn’t going to include Hogwarts-style houses. I’m kind of unprepared for this. Maybe they can exist as fraternities or something?
Alright—in that case I’ll go with “CU has its own internal legal system”, unless I get people asking otherwise. Expulsion will still probably be the most frequent form of punishment, but for extremely serious crimes other options may be available, up to permanent magical imprisonment or forced transformation into a frog or something. Current idea is that it would basically be a court made up of randomly chosen faculty members, but TBD on that.
I can’t stress enough that this sort of thing would be extraordinarily rare occurrence, though, like, maybe two or three times in the last century, at most. The Educators and the faculty are very reluctant to meet out this sort of treatment to students or to their own colleagues—there will/should be plenty of intervention before this point. This is Celestial University, not Ace Phoenix: Celestial Court.