LCO No. 4022 1 of 6 General Assembly Committee Bill No. 81 January Session, 2019 LCO No. 4022 Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT Introduced by: (HED) AN ACT MAKING CERTAI N INSTITUTIONS OF HIGHER EDUCATION AND PRIVATE OCCUPATI ONAL SCHOOLS INELIGIBLE FOR PUBLIC FUNDS AND LICENSURE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2019) (a) On and after January 1, 1 2020, any for-profit institution of higher education licensed to operate 2 in the state that requires any student, as a condition of enrollment, to 3 enter into an agreement that (1) limits participation in a class action 4 against such institution, (2) limits any claim the student may have 5 against such institution or the damages for such claim, or (3) requires 6 the student to assert any claim against such institution in a forum that 7 is less convenient, more costly or more dilatory for the resolution of a 8 dispute than a judicial forum established in the state where the student 9 may otherwise properly bring a claim, shall include in its application 10 to the Office of Higher Education for initial or renewed institutional 11 licensure or accreditation pursuant to section 10a-34 of the general 12 statutes, a statement (A) disclosing the number of claims made against 13 the institution, including claims made against a parent organization or 14 subsidiary of the institution, by a student currently or formerly 15 Committee Bill No. 81 LCO No. 4022 2 of 6 enrolled at the institution, (B) a description of the nature of the rights 16 asserted, and (C) the status of such claims. The institution shall submit 17 additional details regarding such claims as the executive director of the 18 Office of Higher Education may require. 19 (b) The executive director of the Office of Higher Education may (1) 20 deny the application for initial or renewed license or accreditation of a 21 for-profit institution of higher education if (A) such institution fails to 22 include the statement required under subsection (a) of this section in 23 its application, or (B) upon review of such statement, the executive 24 director determines that the public policy of protecting the interests of 25 students in the state requires such denial, or (2) consider the institution 26 ineligible to receive any public funds, including, but not limited to, 27 federal funds administered by the office pursuant to section 10a-45 of 28 the general statutes. For the purpose of this subsection, the executive 29 director may deny the accreditation of an institution of higher 30 education by refusing to accept or withdrawing any previous 31 acceptance of regional accreditation made pursuant to subsection (i) of 32 section 10a-34 of the general statutes. 33 (c) The executive director of the Office of Higher Education shall 34 have the authority granted under sections 10a-34a, 10a-34b and 10a-34e 35 of the general statutes, as amended by this act, to investigate and 36 enforce the provisions of subsections (a) and (b) of this section. 37 Sec. 2. (NEW) (Effective July 1, 2019) (a) On and after January 1, 2020, 38 any private occupational school, as defined in section 10a-22a of the 39 general statutes, that requires any student, as a condition of 40 enrollment, to enter into an agreement that (1) limits participation in a 41 class action against such school, (2) limits any claim the student may 42 have against such school or the damages for such claim, or (3) requires 43 the student to assert any claim against such school in a forum that is 44 less convenient, more costly or more dilatory for the resolution of a 45 dispute than a judicial forum established in the state where the student 46 may otherwise properly bring a claim, shall include in its application 47 Committee Bill No. 81 LCO No. 4022 3 of 6 to the Office of Higher Education for initial or renewed certificate of 48 authorization pursuant to sections 10a-22b and 10a-22d of the general 49 statutes, a statement (A) disclosing the number of claims made against 50 the school, including claims made against a parent organization or 51 subsidiary of the school, by a student currently or formerly enrolled at 52 the school, (B) a description of the nature of the rights asserted, and (C) 53 the status of such claims. The school shall submit additional details 54 regarding such claims as the executive director of the Office of Higher 55 Education may require. 56 (b) The executive director of the Office of Higher Education may (1) 57 deny the application for initial or renewed certificate of authorization 58 of a private occupational school if (A) such school fails to include the 59 statement required under subsection (a) of this section in its 60 application, or (B) upon review of such statement, the executive 61 director determines that the public policy of protecting the interests of 62 students in the state requires such denial, or (2) consider the school 63 ineligible to receive any public funds, including, but not limited to, 64 federal funds administered by the office pursuant to section 10a-45 of 65 the general statutes. 66 (c) The executive director of the Office of Higher Education shall 67 have the authority granted under sections 10a-22i, 10a-22j and 10a-22o 68 of the general statutes, as amended by this act, to investigate and 69 enforce the provisions of subsections (a) and (b) of this section. 70 Sec. 3. Subsection (a) of section 10a-34a of the general statutes is 71 repealed and the following is substituted in lieu thereof (Effective July 72 1, 2019): 73 (a) The executive director of the Office of Higher Education may 74 assess any person, school, board, association or corporation which 75 violates any provision of section 10a-34, [or] 10a-35 or section 1 of this 76 act an administrative penalty in an amount not to exceed five hundred 77 dollars for each day of such violation. 78 Committee Bill No. 81 LCO No. 4022 4 of 6 Sec. 4. Section 10a-34b of the general statutes is repealed and the 79 following is substituted in lieu thereof (Effective July 1, 2019): 80 The executive director, through the Attorney General, may seek an 81 order from the [superior court] Superior Court to prevent any violation 82 of sections 10a-34, [and] 10a-35 and section 1 of this act through the use 83 of an injunction in accordance with the provisions of chapter 916. 84 Sec. 5. Subsection (a) of section 10a-34e of the general statutes is 85 repealed and the following is substituted in lieu thereof (Effective July 86 1, 2019): 87 (a) The Office of Higher Education may conduct any necessary 88 review, inspection or investigation regarding applications for licensure 89 or accreditation or possible violations of this section, [and] sections 90 10a-34 to 10a-34d, inclusive, as amended by this act, section 1 of this 91 act or [of] any applicable regulations of Connecticut state agencies. In 92 connection with any investigation, the executive director or the 93 executive director's designee, may administer oaths, issue subpoenas, 94 compel testimony and order the production of any record or 95 document. If any person refuses to appear, testify or produce any 96 record or document when so ordered, the executive director may seek 97 relief pursuant to section 10a-34d. 98 Sec. 6. Subsection (a) of section 10a-22i of the general statutes is 99 repealed and the following is substituted in lieu thereof (Effective July 100 1, 2019): 101 (a) The executive director may assess any person, board, 102 partnership, association, corporation, limited liability company or 103 other entity which violates any provision of sections 10a-22a to 10a-104 22o, inclusive, as amended by this act, sections 10a-22u to 10a-22w, 105 inclusive, section 2 of this act or regulations adopted pursuant to 106 section 10a-22k an administrative penalty in an amount not to exceed 107 five hundred dollars for each day of such violation. 108 Committee Bill No. 81 LCO No. 4022 5 of 6 Sec. 7. Section 10a-22j of the general statutes is repealed and the 109 following is substituted in lieu thereof (Effective July 1, 2019): 110 The executive director, through the Attorney General, may seek an 111 order from the Superior Court to prevent any violation of sections 10a-112 22a to 10a-22o, inclusive, as amended by this act, [or] sections 10a-22u 113 to 10a-22w, inclusive, or section 2 of this act. 114 Sec. 8. Subsection (b) of section 10a-22o of the general statutes is 115 repealed and the following is substituted in lieu thereof (Effective July 116 1, 2019): 117 (b) The executive director, or the executive director's designee, may 118 conduct any necessary review, inspection or investigation regarding 119 applications for certificates of authorization or possible violations of 120 sections 10a-22a to 10a-22o, inclusive, as amended by this act, section 2 121 of this act or [of] any applicable regulations of Connecticut state 122 agencies. In connection with any investigation, the executive director 123 or the executive director's designee, may administer oaths, issue 124 subpoenas, compel testimony and order the production of any record 125 or document. If any person refuses to appear, testify or produce any 126 record or document when so ordered, the executive director may seek 127 relief pursuant to subsection (a) of this section. 128 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2019 New section Sec. 2 July 1, 2019 New section Sec. 3 July 1, 2019 10a-34a(a) Sec. 4 July 1, 2019 10a-34b Sec. 5 July 1, 2019 10a-34e(a) Sec. 6 July 1, 2019 10a-22i(a) Sec. 7 July 1, 2019 10a-22j Sec. 8 July 1, 2019 10a-22o(b) Committee Bill No. 81 LCO No. 4022 6 of 6 Statement of Purpose: To prevent for-profit colleges and occupational schools that require students to waive certain rights, as a condition of enrollment, from receiving public funds or licensure from the Office of Higher Education. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors: SEN. LESSER, 9th Dist. S.B. 81