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IN SB0345
Bill
AI Summary
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For-profit postsecondary institutions offering associate or baccalaureate degrees must submit surety bonds or financial guarantees to the Commission for Higher Education by October 1, 2019, conditioned on faithfully performing student contracts.
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Establishes the For-Profit Postsecondary Educational Student Reimbursement Fund, funded by annual fees from for-profit institutions, to reimburse students whose institutions breached enrollment agreements or closed before students completed their programs.
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Students may claim reimbursement for tuition and fees paid within the preceding 5 years, but only after the institution's surety bond has been exhausted.
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Institutions with no reimbursement claims against them for 3 consecutive years become exempt from the annual fee requirement.
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Commission must submit annual reports to the governor and general assembly by July 1 detailing claims filed, amounts paid, claims denied, and outcomes for students at closed institutions.
Legislative Description
For-profit postsecondary educational institutions. Requires for-profit postsecondary educational institutions to submit to the commission for higher education (commission) surety bonds or other forms of financial guarantee, as approved by the commission, in an amount determined by the commission. Requires, not later than October 1, 2019, and not later than October 1 each year thereafter, each for-profit postsecondary educational institution to pay an annual fee to the commission in an amount determined by the commission, except under certain circumstances. Establishes the for-profit postsecondary educational student reimbursement fund (fund) for the purpose of providing funds to reimburse a student who paid tuition and fees to a for-profit postsecondary educational institution that: (1) failed to perform faithfully an enrollment agreement or contract with the applicant and a refund of applicable tuition and fees incurred by the applicant has not been reimbursed or discharged; or (2) closed before the applicant completed the applicant's course of study, and a refund of applicable tuition and fees incurred by the applicant has not been reimbursed or discharged. Provides that the commission may award to an applicant an amount for reimbursement from the fund only if the surety bond of the for-profit postsecondary educational institution against which an applicant has filed a claim has been exhausted. Provides that money in the fund is continuously appropriated for the purposes of the fund. Requires the commission to submit a report to the governor and the general assembly concerning claims for reimbursement from the fund.
Last Action
First reading: referred to Committee on Education and Career Development
1/10/2019