Connecticut 2019 2019 Regular Session

Connecticut Senate Bill SB00081 Comm Sub / Bill

Filed 03/06/2019

                     
 
 
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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    
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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    
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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    
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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    
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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) 
    
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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