CT HB05171

Repeals and replaces subsection (d) of section 10a-22c of the general statutes, effective July 1, 2016.

Requires private occupational schools to file an irrevocable letter of credit issued by a bank with a main office or branch in Connecticut before receiving a certificate to operate.

Establishes a sliding scale for letter of credit amounts determined by the executive director based on proposed student enrollment, school catalog, and financial statements, with a maximum cap of $40,000.

Letter of credit must guarantee the school's payments to the private occupational school student protection account and is payable if the school fails to make required payments or if the state reimburses tuition refunds to students.

Letter of credit may be released after 12 years from initial approval if the school has verified fiscal soundness.