General Assembly Raised Bill No. 5171
February Session, 2016 LCO No. 1054
*_____HB05171HED___031516____*
Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT
Introduced by:
(HED)
General Assembly
Raised Bill No. 5171
February Session, 2016
LCO No. 1054
*_____HB05171HED___031516____*
Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT
Introduced by:
(HED)
AN ACT CREATING A SLIDING SCALE FOR LETTERS OF CREDIT FILED BY PRIVATE OCCUPATIONAL SCHOOLS.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Subsection (d) of section 10a-22c of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2016):
(d) No certificate to operate a new private occupational school shall be issued by the executive director pursuant to section 10a-22d until such private occupational school seeking authorization files with the executive director an irrevocable letter of credit (1) issued by a bank with its main office or branch located within this state, (2) in an amount to be determined according to a sliding scale developed by the executive director based on the proposed student enrollment, the proposed school catalog and financial statements detailing the condition of the school, submitted in accordance with the provisions of subsection (c) of section 10a-22b, but not to exceed the penal amount of forty thousand dollars, and (3) guaranteeing the payments required of the school to the private occupational school student protection account in accordance with the provisions of section 10a-22u. The letter of credit shall be payable to the private occupational school student protection account in the event that such school fails to make payments to the account as provided in subsection (a) of section 10a-22u or in the event the state takes action to reimburse the account for a tuition refund paid to a student pursuant to the provisions of section 10a-22v, provided the amount of the letter of credit to be paid into the private occupational school student protection account shall not exceed the amounts owed to the account. The letter of credit required by this subsection shall be released twelve years after the date of initial approval, provided evidence of fiscal soundness has been verified.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2016 10a-22c(d)
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2016
10a-22c(d)
HED Joint Favorable
HED
Joint Favorable