HI SB945

Creates a new "candidate for accreditation" category for degree-granting institutions that have submitted applications to accrediting agencies recognized by the U.S. Department of Education and whose applications have been accepted and are pending approval.

Allows candidates for accreditation to receive provisional authorization to operate for up to five years (renewable with director approval for good cause) while seeking full accreditation, rather than requiring accreditation before operating.

Requires candidates for accreditation to provide accreditation plans, submit required documentation, notify students in writing that approval is contingent on obtaining accreditation, pay annual $5,000 fees, and maintain a $50,000 surety bond to protect students' tuition and fees.

Mandates automatic suspension of provisional authorization if an institution loses surety bond coverage or fails to achieve accreditation within the required timeframe, with revocation of authorization and closure procedures if authorization is not reinstated within 60 days.

Takes effect May 12, 2059.