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ID H0083
Bill
Status
3/1/2013
Primary Sponsor
Education Committee
Click for details
AI Summary
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Requires proprietary schools to obtain a surety bond or other financial instrument approved by the director as a condition of registration to indemnify students for losses from school failures or contract violations.
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Eliminates provisions allowing newly registered proprietary schools to obtain bonds in lesser amounts supplemented by other financial instruments for up to five years.
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Prohibits both the principal and surety on a bond or other financial instrument from terminating coverage except upon providing 120 days' prior written notice to the director.
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Authorizes the director to submit demands on the bond on behalf of students when losses occur due to school failures to meet contractual obligations or violations of proprietary school regulations.
Legislative Description
Amends existing law relating to proprietary schools to revise provisions relating to a condition of registration, to eliminate language relating to a newly registered proprietary school and to provide that neither the principal nor surety on a bond or other financial instrument may terminate coverage of the bond.
PROPRIETARY SCHOOLS
Last Action
Reported Signed by Governor on March 1, 2013 Session Law Chapter 31 Effective: 07/01/13
3/1/2013