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ID H0361
Bill
Status
Passed
3/6/2014
Primary Sponsor
Education Committee
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AI Summary
- Proprietary schools must obtain a surety bond or other board-approved financial instrument issued by a state-authorized insurer as a condition of registration to indemnify students for losses from school failures or contract breaches
- The director may submit demands to the surety bond on behalf of students when losses occur due to school failures to satisfy tuition contracts or violations of proprietary school regulations
- Neither the bond principal nor surety may terminate coverage without providing 120 days' prior written notice to the director
- Proprietary schools accredited by an accreditation organization recognized by the board are exempt from the surety bond or other financial instrument requirement
Legislative Description
Amends existing law relating to proprietary schools to revise provisions relating to a condition of registration and to provide for an exemption.
PROPRIETARY SCHOOLS
Last Action
Reported Signed by Governor on March 6, 2014 Session Law Chapter 35 Effective: 07/01/2014
3/6/2014
Committee Referrals
Education1/31/2014
Education1/16/2014
Full Bill Text
No bill text available